Partner going bankrupt - any experience?

[DontCallMeDaisy]

I live with my partner whose business has recently failed and he is in the process of bankruptcy.

Does anyone have any experience of this? I'm getting increasingly concerned about mine and my daughter's financial situation. They are asking for my tax return and details of child support I receive from DD's dad and costs for her clubs and after school provision.

I work full time and get CM from my ex but I've never been flush - to be honest, I've been covering my partner's contributions to the house more and more over the last year.

I get why they need to know household expenditure but I have my own debts and outgoings to manage and nobody's asked about that. It feels as though all my money is being thrown into the pot and anything they deem disposable is going to go into his payment agreement for the bankruptcy.

I think it's going to mean his monthly payment will be high and I will end up having to cover all the household outgoings at the expense of my own obligations and my daughter's quality of life.

I thought I would be OK as we don't have any joint accounts and we rent so no mortgage. The only way we are linked really is both our names on the council tax bill, so I don't understand why I am being dragged in to it.

Any experience or advice would be greatly appreciated - I'm getting really worried.

If you live together, it's all classed as 'household income' I'm afraid. They do it to determine what would be a reasonable contribution for him to make to the household - anything else he earns goes to the creditors.

It's hellish, but he can be discharged quickly (usually 3 years). And then start to rebuild. An IVA is less harsh, but lasts longer. Good luck to your DP, tell him there's light at the end of the tunnel, but he needs to be prepared for a few tough years.

Thanks @Leafyhouse , I think it is going to be really tough, for ALL of us by the sounds of it.

Do you know if they ever make it so he would pay less than half of the household bills? I worry that they will look at my income and decide he doesn't really need to pay that much and leave it so I have to cover most of it. And if that was the case, I wouldn't be able to cover my own debts or things like DD's clubs.

I've looked at the guidelines and they only allocate £15 a month for hobbies as an allowable expense. My DD does dance and music classes, which are expensive but her dad gives me the money for half of them in his child suppport. But they count that as a general household income. It's not a general household income, it's money for my DD.

My partner has never contributed to her upbringing financially. But now suddenly the child support and even the child benefits are all being counted in this. It feels really unfair.

I can't find any information on it at all. It just says household expenses. His bankruptcy is a household expense but my financial obligations are not. Sorry, I'm ranting now. I really need to find somebody IRL to rant at quick!

Sorry but I'd shut of him fast.

That doesnt sound fair. It isn't your debt......could he stay with a relative for a while ?? I'd be telling them we'd split up until it's all sorted !

I agree with Barnabus - I'd be off.

I wouldn't let my child suffer because of a partner's mistakes that were made before I was involved with him. She's already suffering from her own father being a twat.

You need to apply to ‘disassociate’ yourself financially from your partner. This should remove you from any shared records like the same address and therefore should leave your own finances and credit rating unaffected. I had to do it years ago when my DF lost his business in the recession years and I think from memory I just had to speak to my back and fill in a form.

*bank not back!

They will tot up the household income and expenditure and then apportion a % of it to your partner. Let’s say his income is £250 and yours is £750, they’d apportion him to be responsible for 25% of the allowable household expenses, and the rest of his income goes towards his debts for three years. They won’t allow your debt repayments as an expense.

It’s been a while since I calculated an income payments agreement, but I believe that if you decline to provide proof of your income they assume a 50/50 split of household expenditure. You can decline by the way, it’s his bankruptcy not yours and you are not under any obligation to co operate with the official receiver like he is.

As has been said, I would take steps to disassociate yourself from him financially ASAP.

As an aside, everyone is discharged from bankruptcy after 1 year now (unless they don’t co operate and the Official Receiver applies for a suspension of discharge). The Income Payments Agreement/Order lasts for three years from the date of the agreement/court order but doesn’t affect the date of discharge.