Hi Mrsskint

In answer to your questions, all household income needs to be looked at, although you would obviously have a built in allowance.

If theres negative equity, then it shouldnt be a problem,but please ensure the position is confirmed.

Contribution is based on surplus income and not onwhat is average or debt level

Regards

Mark

Hi mrs skint.

Just to add to Mark's comments, the subject of a partners income being taken into account is a difficult one for us to explain clearly. Obviously many people are worried that they'll effectively be required to pay for someone elses debts.

That isn't the case. The reason why a partners income is taken into account is so that it can be proved to creditors that each of the partners is paying their fair share of the household expenditure and bills. The disposable income of the person entering a trust deed (or another option) would then become their monthly payment, the disposable income of the other person is theirs to do as they wish with. Effectively an allowance is created (as Mark says).

Please don't concern yourself with what the minimum contribution to a trust deed would be as that is looking at the situation from the wrong starting point. The key piece of information is how much you can afford to pay... that figure helps a debt adviser to tell you what solutions are available to you. There are always solutions.

Thank you for your reply. I am not worried about paying towards my partners debt, my qs is in realtion to the following statement:

"The reason why a partners income is taken into account is so that it can be proved to creditors that each of the partners is paying their fair share of the household expenditure and bills. The disposable income of the person entering a trust deed (or another option) would then become their monthly payment, the disposable income of the other person is theirs to do as they wish with. Effectively an allowance is created."

My partner earns more than double what i earn and this is due to me having to change from full time employment to part time employment so that i could look after our children. So im wondering, is this taken into consideration, because in effect if it is looked at that my partner pays half of the outgoings and i pay half then this is innacurate as my income wouldnt cover half so therefore my partner contributes more to the household outgoings, if you understand what i mean? I was also wondering if my credit rating would get affected if my partner entered into a td or babkruptcy?

Thanks

Hi mrsskint

No, the income/exp is looked on a pro rata basis & it won't affect your credit rating.

Mark

Hi again mrs skint.

Just to elaborate on Mark's comment about it being looked at "pro rata":

Lets say your partner earns twice the amount that you do, and your mortgage/rent is £600 per month.

In pro rata terms your partner would, in theory at least, be responsible to pay £400 and you £200.

Your credit rating is an individual matter so will not, in itself, be affected by your partner going bankrupt or starting a trust deed.

However, if you have any joint financial arrangements (joint bank account, joint mortgage etc) there will likely be a "link" between your credit files. Some lenders may spot this link and use the information when making a decision whether or not to lend to you.

Thanks for all your advice. We think it is likely that my partner's only option is bankruptcy. Can you please advise How will this work with our joint mortgage and the secured / unsecured loan against the mortgage? As it is in negative equity would we just continue to pay the current payment?

Thanks

Hi mrs skint.

The unsecured loan would be included in your partner's bankruptcy. That will mean the lender will be looking to you to make the full repayments on that loan once the bankruptcy happens.

You'll both need to continue to pay the mortgage and the secured loan on the home.

Is the property in negative equity once you strip out the unsecured loan that's connected to your mortgage?

Thanx tda, the unsecured part is about 7000 so we'd definately still be in negative equity. Thanx for all your advice