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

Moderators: TalbotWoods, JaneClack

By skint1
#4186 hi.

I have been filling in my forms as i go bankrupt on 1/3/05.

I could not work out why there was about 100-125 a month unaccounted for each month for the last 7 months.
It turns out my husband has been using more money than I realised.He said it is to pay bills he has got but will not tell me what.
I think he may be paying back family money he owes that I thought was a gift/long term loan.

I don't think I will have to pay any surplus as we are only on benefits.I have declared my husbands full income on the forms and his basic bills only life insurance and mobile phone.
But what can I say about this other money if he won't tell me where it's going.

He is getting very defensive about it and says it is nobodys business how he spends his money as he is not the one in all the debt.

Will the OR except it is for his only expenses if I can't tell him what they are?

Has anybody got any advice or experienced anything like this?

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By JaneClack
#4189 The bottom line is that it is your debt so his income could be going somewhere else and he doesn't have to account for it. However when his debts are left he will have to pay his and even if they are at reduced payments he will then have to account for where his other money is going. So, in short, this is not going to be a problem for you - you could put this down as payments to his creditors or just leave him off the form as he too is on benefits.
By skint1
#4193 Thanks.
So I could just put down in expenses x amount to husbands creditors.

He is going to continue paying his debt in full at the moment.
We will have to see what happens when they chase him for our joint debt though.

I will point out to him about his expenses being declared for a repayment plan.I hadn't thought about that bit.
Although he still doesn't have to tell me about his expenses if he does that!!!

Thanks again for your advice.
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By JaneClack
#4194 I personally would leanot say payments to his creditors - his income alone wouldn't allow him to live alone and pay his debts in full , would it? It might then be thought that his creditors were being paid to the detriment of yours! After all in a repayment plan it would be necessary to put down the household income for him to have a surplus income. Think hard. You are sorting out your problem, don't let him hold you back on this. I can understand his fears but if it is a family debt he is paying back he is preferentializing a creditor and there should still be no surplus income as you are on benefits!!!
By skint1
#4198 Exactly what I was worried about.

It turns out that he had been paying a family member back £100 a month for money we borrowed from his credit card.This was paid back by oct last year.So the min payment on the card is £30.00 a month at the moment but he has been trying to clear it quickly as it was high interest.

Then he has bought some clothes/shoes from a catalouge for all of us over last year.On buy now pay later. He told me his Dad had helped us out and bought them. So that is £40.00 a month for 6 months.
On top of that he is going to have to take responsability for our joint loan and overdraft as soon as I go bankrupt.

The surplus income on the forms for the OR is £210.00. the amount we need to pay all these payments in full is £212.00

So I am not sure if I should just hope the OR doesn't go for a BPO and if he does explain to him that my husband will be having to take responsibility for the joint debts which will take practically all of our surplus income.

Would it be worth it to set up a BPO on a surplus of £70.00?(whats left after paying joint debt back monthly)

It just seems to be one stumpling block after another at the moment.
But knowbody said this was going to be easy.It will be worth it in the end :)

I really appreciate all your help.

Thanks again
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By JaneClack
#4199 It's an income payments arrangement and would be very unlikely on £70 per month - the OR usually wants 50 - 70% of any surplus. But you are on benefits. I shall pm you later as I have to go out for lunch!
By skint1
#4203 Thanks for all your help.
I am getting confused with all the different terminology