Debt Questions forum. General questions on debt issues.

Moderators: TalbotWoods, JaneClack

By Pedro
#7022 Hi,
I am preparing my petition etc and am getting confused about income and expenditure and just how to present this.
I know that costs are whatever they are, but in practice my wife and I just combine all our income and pay out what is needed.
For the purposes of working out a financial statement just for me and taking 'my' very basic essential costs I end up with a negative. Surely this cannot be right and the OR will question this. I want to avoid going forward on a totally joint financial statement because my wife has to make payments for a loan and also her credit cards. Apart from that she also would like to continue to have some small 'non-essential' spending.
The form asks about contribution from the household (ie my wife) and obviously in practice she makes up any shortfall on 'my' costs. But we do not really want to state this contribution as a fixed monthly amount. In any case my parents also provide regular financial support.
Can anyone provide some practical advice? Do I have this whole thing wrong?
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By JaneClack
#7027 Your wife is not included in your bankruptcy and is entitled to pay her own debts from her own income. However if you claim that you are paying ALL the household costs (although you can!) including housekeeping etc then the OR might query this. If she is earning more than you then it would be unrealistic - do you split the bills 50 - 50 - if so that is more than reasonable. Think about it - if you are paying all the bills and she is earning just enough to pay her creditors and give her spending money you are in fact subsidizing her creditors and this may be questioned. However the bottom line is you put down what you pay out and then discuss this with the Receiver if he asks questions. He sees a LOT of people with negative surplus income - that is why they are going bankrupt!
By Pedro
#7032 Thank you Sarah for your reply.
Basically, I pay for all the rent on our flat (because its in my sole name) and all the electric bill (again its in my name only). We split the council tax 50/50 . This leaves me with negative £4 per month.
My wife pays for everything else we need plus her own creditors.
We are both on low income but my net monthly is higher than her net monthly.
If I were to put my outgoings including clothes, medical and housekeeping etc at 50/50 share my negative income would be even more negative.
Thats why I'm confused! Simply because my own salary only pays for my own legal obligations (ie rent/c/tax and electric) then its gone.

My wife is basically subsidising me but we do not want to fix this as a monthly contribution from her else she cannot pay her legal obligations.
Sorry to say but we are rather dependant upon 'pay-outs' from my parents just now. I do not want my wife will file for bankcruptcy.

Does this make sense about my confusions for financial statement?

Thanks for any opinions

Pedro
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By JaneClack
#7049 No, not at all. It is like most people. Put down what you spend and you can explain the rest to the OR when you see him.

You are worrying unnecessarily!