Many of the people we speak to are surprised when we ask about total household income. ‘Is my partner’s income taken into account in bankruptcy ? ‘ is often a question asked. Especially when only one party is going bankrupt. But believe us when we tell you that getting the Income and Expenditure right is really important, as this will decide whether you end up in an Income Payments Agreement (IPA) for the next 36 months, or not.
It’s what your partner contributes and not what they earn that is the key issue
For this reason, you need to know we need to know what your partner contributes towards household income, rather than what he or she earns. It could be, for example, that your partner takes home £1200 per month, but by the time his / her car finance, credit cards and other expenses (child support, for example) has been deducted, only £700 is available and this is the figure we are talking about – what they contribute towards the bills and food.
This would not apply in cases where both parties are going bankrupt – here we would need to know the full take home pay of both parties. It’s not all bad news, though as now we can factor in allowances for two people instead of one and that makes a big difference.
People thinking about doing their own bankruptcy would do well to seek advice when attempting the Income and Expenditure as a bodge job could cost you dearly. Even an IPA of £80 per month works out to just under £3000 over a 36 month period, something you could well do without. Our experts know all the allowances and will guide you through this.
Feel free to call us with any questions relating to Is my partner’s income taken into account in bankruptcy or for bankruptcy help on 01425 600129, we are here to help. Alternatively, post a question on our home page and we’ll help you that way. Please note, Court appearances are no longer required for bankruptcy and Bailiffs do not form part of the process.