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Can anyone help me with this question?

I have an informal agreement with my ex-wife for child maintenance. It is all very amicable and I was paying it by standing order until recently when I changed to a basic bank account and am now paying it by cash weekly.

I know it is allowable as expenditure in an IVA but if I have to go bankrupt will this be allowable as part of my expenditure in backruptcy?

Worried about this generally as it's bad enough me coping with this without dragging my childs life into it.

Thanks

I don't think you would have a problem with this for a number of reasons;

1) As a rule of thumb an expense allowable in IVA would also be allowable in Bankruptcy.

2) There is a precedent case (Re:Rayatt) which held that expenses need only be 'reasonable', not 'basic', ie you should not be reduced to income support levels.

3) A contribution from income would only be required if a realistic amount of money was to be had, in which case you would probably still be paying the IVA anyway.

Hope this helps but feel free to shoot me down if you disagree - I'm new to the forums but not to debt - unfortunately !

Hi ackeryi

Your child maintenance payment will continue in the usual manner if you are made bankrupt - ie it is an important allowable expense.

Can I offer some advice. One of my clients has recently been hit with an enormouse CSA bill as his ex-wife (to whom he has been making regular cash payments for maintenance) has claimed that she has not been receiving anything. I'm not saying that this will happen to you, but do get some form of receipt from your ex-wife for the cash payments just to cover yourself.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

Thanks for the advice Melanie.

We have an informal agreement as it means she receives way more than if we went through the CSA (or whatever its called now!).

I was just worried that if my IVA doesn't work bankrutcy would mean this arrangement wouldn't be able to continue but it sounds like it won't be a problem.

Thanks again

Hi ackeryi

I think Melanie was suggesting receipts from your ex only as backup if they were ever required. I know someone in the same situation, it only takes for someones circumstances to change........things could get nasty (not saying it will of course)back up plans are always good [:D]