I work full time. My wife gets Working family tax credit and child benefit. My wife has 1 credit card and does not want to enter into bankcruptcy. I currently have an IVA soon to have been running for 1 year over 6 years. I am considering bakcruptcy but wonder how the OR would feel about my wife and our finances. How would the finances be worked out? Is there a simple explanation?
With one credit card it is probably best for your wife to look at an other option rather than bankruptcy
With regard to you going into bankruptcy only your wife's contribution to the househould would be conbsidered - allowing for her to have her own personal expenses including debt repayments
Could you advise of why you are considering bankruptcy - after being in an IVA for a year?
I'm considering bankruptcy because to afford christmas I had to miss 1 month of Rent and some Council Tax which i'm now trying to pay back. Also things like school expenses for 3 children are adding up. My food allowance is being used up to support this. Also I have just had a rent increase and Council Tax increase notificatetion for 1st April of an extra £30 per month. My IP said I have to find the money from somewhere and that I agreed to pay into the IVA a set amount. They said if i earn overtime they will disregard it but I know for the foreseeable future there is no overtime available. So i'm in a dilemma I feel
Your priority payments ( rent,rates & utilities) are most important and should come before the IVA payment
If you move into bankruptcy you can include the agreed arrears payments of rent and council tax in your expenditure calculations.
with 5 in the household - are all the children dependent or are any working? As you say housekeeping will be high - you say your food allowance is being used up - how much is this? , and is there an allowance for school lunches?
There are many variables and we can touch on some of them here however I suggest that you contact an expert and they will be able to run through an income and expenditure with you - to see your current position and how this compares with the IVA
I'm considering bankruptcy because to afford christmas I had to miss 1 month of Rent and some Council Tax which i'm now trying to pay back. Also things like school expenses for 3 children are adding up. My food allowance is being used up to support this. Also I have just had a rent increase and Council Tax increase notificatetion for 1st April of an extra £30 per month. My IP said I have to find the money from somewhere and that I agreed to pay into the IVA a set amount. They said if i earn overtime they will disregard it but I know for the foreseeable future there is no overtime available. So i'm in a dilemma I feel
Hello Kardon39
Welcome to the forum
As Alan has already said before deciding on Br it would be worth doing a full income and expenditure on all the outgoings. This would give us the real monthly disposable income and then we would be able to advise you of the consequesnces in Br.
It may of course be possible to do a midification to the IVA and not go bankrupt but it is difficult to give a professional overview through the forum.
Depending upon the disposable income you may be liable for an Income Payment Order, which is a contribtion towards your debts and is usually between 50 - 70% of your disposable income.
However as you already have arrears on rent and council tax this will affect the disposable oncome.
What is your monthly IVA payment and which part of the country are you in?
Paul Johns Assisted Bankruptcy Specialists Reviva UK www.revivauk.com
As paul says it would be handy to see an income and expenditure, and that there is the possibility of an income payment order, however one thing to note is that you will find your allowable expenditure in Bankruptcy will be more realistic than that of the IVA.
In Bankruptcy the figures are set by the court whereas in an IVA it is set by your creditors so the less they allow you to live on the more money thay can have.
Finances - wife and myself
Posted - 18 March 2008 : 16:14:02
