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A good starting point for bankruptcy questions
By woodsy60
#33012
My wife and I have been advised to file for bankruptcy, which I know will require two payments to the Insolvency Officer (IO).

We have two children - 12 & 18 (at college)and live in a council house.

My wife has long ago had open heart surgery and has been on DLA for over a decade. She receives both mobility and care, as do I for long-standing disabilities too.

We have no savings but have been advised to pay token payments of a £1 to our creditors - all non-secured debts. This is so we can save for the two IO payments, which we have started to do.

My question is will the IO take a portion of our state benefits/DLA to pay the creditors during the bankruptcy?

My wif's DLA goes on a mobility car so I can get her to monthly London hospital appointments - 40 miles away - and to the weekly appointments she must have locally because she has various other disabilities.

My DLA is used on fuel, my own hospital trips to London and my own local appointments. It also goes my own health needs.

Sorry to be so long-winded but what will the IO do with our state benefits and DLA?

We have tried to keep the creditors payments under control but can no longer. A DMP was not an option, we were advised as our disabilities will not improve.

Any advice please? We are both VERY worried.
User avatar
By Hayden
#33019
Hi there woodsy60. Welcome to the forum.

Sorry to hear about you and your wife's situation. If you and your wife both need to go bankrupt then yes you will both need to pay a Court Fee. Please remember that if you are both on low incomes the cost will be reduced to £525 each. For more information about this see: How much does it cost to go Bankrupt?

In terms of whether you will have to make any payments towards your debts when you go bankrupt I think that will be extremely unlikely. You will have tell the Official Receiver about your DLA incomes. However you are only required to make a payment if your total income (including benefit income) exceeds your reasonable living expenses. If you qualify for benefit income then this will almost certainly not be the case. You can read more about this here: Will I have to pay towards my debt in Bankruptcy?

Given you mentioned that you have been advised to go bankrupt I assume that you have looked at the various debt solution options open to you? That being the case have you considered a Debt Relief Order (DRO)? This might be available if either you or your wife individually owe less than £20k. A DRO gives you the same outcomes as Bankruptcy but will cost far less to implement. The cost is just £90 per person. You can find out more here: Debt Relief Order

If you have any more questions please do not hesitate to ask. We are hear to help :)
By woodsy60
#33073
We finally took the step to go bankrupt yesterday.

Fortunately, my wife and I both received a grant through Charis to pay the £525 bankruptcy charge.

Although it is a relief to get the court hearing out the way we now have the anxious wait for the Official Receiver to get in contact.

I would be grateful for any advice about what to expect next?

Thank you
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By Hayden
#33074
Hi woodsy60

Good to hear from you again. Really pleased to hear that you went through with the bankruptcy. It certainly seems the right solution for you. Also great news that you got the Charis grant. How did you find out about that? Did someone put you in touch with them?

In terms of what happens next normally the Official Receiver will be in contact within 48 hours. They will want to agree a time when they can go through the information you have given on your application forms. Given that you have no assets and a low income there should be absolutely no issues.

You can read more about what to expect from the Official Receiver here: What happens when you meet the Official Receiver