I was declared bankrupt without my knowledge in March 2010. I had an outstanding debt of £10,000. The first I heard about this was from a call from the Insolvency Department. They have decided that I could pay £700 a month over three years to pay off the debt. I only earn £1800. Why am I having to pay back £27,000 when the debt was £10,000. They are taking all of my wife's wage. I have written to both the solicitors but have not received an suitable answer.
The best advice I can give you is to get in touch with the Official Receiver (OR) and ask for a reveiw (and explantion)of your Income & Expenditure.
The Official Receiver has a duty to 'establish' an individuals income and expendure. This is done by way a a full assessment of a households income and running costs, so will always include a partners income. This assessment is called an Income Payment review and following this review it will establish whether or not there is a 'surplus income' - that is income available once all houseold costs have been met. If this is the case, the OR will apply for an Income Payments Order which means that the bankrupt individual will have to pay to the OR the surplus income for a period of usually 36 months - 3 years)
The Income Payment Order amount will reflect the surplus income and bear no relevance to the debt level
Therefore, please get in touch with the OR and request a reivew and explanation, check your outgoings before hand to ensure that you have included everything that you actually payfor - but remember the OR has strict guidelines to work within and you may not have items included in your expenditure that you may wish to
Hope this helps, melanie
Melanie Nicholas CertDR 30+years insolvency experience - 23 of which in the Insolvency Service and the past 8 years with a number of IP firms.
If I can be of any help to you in any way or answer any queries, concerns or worries you may have please do not hesitate to get in touch -I can be contacted at www.lifestylemoney.net or via the experts tab
I was declared bankrupt without my knowledge
Posted - 03 April 2012 : 21:40:06
