Questions you have before making a decision to go Bankrupt and the Bankruptcy process

Moderators: TalbotWoods, JaneClack

ByFreddyfish
#219553 Are you allowed double surplus income when you both go bankrupt?

How do they apportion rights to benefits if only one person working and earning low wage. Is it a straight split so one person could be in surplus and the other under or do they consider these issues all together?

If you leave a job after BR do they change the IPA if it was your own choice?

Thanks
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ByJaneClack
#219577 If you are both going bankrupt it would pay to do a joint budget - they do not generally ask for an income payments arrangement if someone is on benefits and usually one is only set up if the disposable income - after all household expenses are paid - is over £100. Under £100 and there would be no IPA.

If you change your job for whatever reason then you have a duty to inform the Official Receiver or Trustee within 28 days. He does not care why the job was left - he is only interested in the disposable income.
ByFreddyfish
#219594 Thanks Sarah.
Apologies for asking such nitty gritty questions i am just trying to find out what we will be allowed to do. I guess it doesn't really matter because we have very little choice now and no money anyway.

The surplus income is that per household or per person going bankrupt?
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ByJaneClack
#219595 As there are two of you it really will be household - as I said a person who is completely on benefits has no money to pay towards an income payments arrangement anyway and therefore the partner's expenses will be higher - do remember if the OR does think an IPA is appropriate, you do have the right to question it and they have to look again. You will certainly, in bankruptcy, not be asked for more than you could afford - the budget would be more generous than allowed in other debt remedies.
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