I am considering bankruptcy because of my level of debt. I live with my partner in a house owned wholly by her. Two questions: 1. Is her house in any way at risk if I become bankrupt? 2. Will her income be taken into consideration when it comes to a decision on an IPA? I now only have a part time job paying £833.00 a month before tax.
1) If your partner's property is not mortgaged and was not mortgaged from the time you moved in then you have no interest in the property.
If this is not the case then depending on how long you have lived in the property, what the equity level was at the time you moved in, what the equity level is now and what sums you each contribute to the household expenditure it's possible you have a legal interest in the property.
2) No not directly. However, if you assume that your joint contributions to the household produce a monthly disposable income of £450 and your partner's contribution is twice yours then it would be deemed by the OR that your own DI is half your partner's and therefore £150 of which you would have to pay £75 (50%) into an IPA.
Remember you as the bankrupt have to declare your net income. But you should only declare your partners contribution to the household which can be somewhat less than her net income figure as she may well have expenditures / debts to service of her own.
1) If your partner's property is not mortgaged and was not mortgaged from the time you moved in then you have no interest in the property.
If this is not the case then depending on how long you have lived in the property, what the equity level was at the time you moved in, what the equity level is now and what sums you each contribute to the household expenditure it's possible you have a legal interest in the property.
2) No not directly. However, if you assume that your joint contributions to the household produce a monthly disposable income of £450 and your partner's contribution is twice yours then it would be deemed by the OR that your own DI is half your partner's and therefore £150 of which you would have to pay £75 (50%) into an IPA.
Remember you as the bankrupt have to declare your net income. But you should only declare your partners contribution to the household which can be somewhat less than her net income figure as she may well have expenditures / debts to service of her own.
considering bankruptcy because of level of debt
Posted - 31 March 2009 : 07:26:59
