My girlfriend is declaring herself bankrupt and currently rents a property in London. I own a house in Birmingham but work on short contracts, currently in London. When my contract ends we would like to move to my house in Birmingham. She is concerned that when she declares bankrupty, her payments to creditors will be set and then if she gives up her job and moves she will still have to pay the set amount. Is this correct? Is there anything she can do to change the payment amounts? How will things change when she lives with me? Will I be responsible for any part of her payments? Thank you.
Once your girlfriend declares BR she may have to pay an IPA (Income Payment Agreement) dependent upon how much money she earns. If she has more than £99 left over after paying rent, utility bills, food, etc. then she would pay between 50% and 70% of the remaining amount.
Every time her income changes she will need to contact the OR and will complete a new I&E form so her IPA amount will increase/decrease depending upon her income.
You will not be affected by her BR or responsible for any of her IPA payments. When you move in together her outgoings are going to change as she will only pay a certain amount (half?) of the utility bills, rent, food, etc. so when this happens she should contact the OR to advise of the change or circumstances and she will complete another I&E and her IPA amount will change.
My girlfriend is declaring herself bankrupt
Posted - 12 March 2010 : 04:35:10
