BR Income Calculations

[wen]

When my husband and I go bankrupt, will the official receiver sit and take our combined expenses and combined income together and then any surplus be then calculated into a Income Payment Order, or do they take my income, and half the expenses and work it out and then take my husbands income and the other half of our expenses and work it out seperate for him?

If it is the latter, what happens if husband earns the majority of the money, but is only allowed half the expenses, so would show to have more surplus, whereas wife might earn less and not be able to even cover the other half of the expenses? Does a bit of common sense come into play at all?

[BrassicLintus]

Hi Wen, sorry to say but I think it depends on your OR!!! Common sense would dictate that he would take into account your combined wages, deduct all outgoings and then work out an IPA for both of you, but I'm afraid sometimes common sense isn't used!!! He may well calculate your IPA separately, but he would expect the partner who earns more to contribute more to the monthly outgoings (if that makes sense). For example if you were earning £2000 and your partner earning £1000, he would look at how much each partner contributed to the I&E and expect it to a fair proportion on their income.

Sam