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Case Study 3

Bankruptcy Case Study In Respect Of "Your Future Income"

Background

Rachael is a divorced mother of three. She has suffered a serious illness rendering her incapable of working and is now therefore claiming benefits to support herself and her family.

She is made bankrupt for non payment of mail order goods.

She receives the sum of £120 per week in incapacity benefit and child allowance.

Her weekly expenditures are £115.

QUESTION

Will the Official Receiver make an income payments order.

ANSWER

No.

Rachael is receiving benefits to support both her and her family and has no surplus income.

Rachael will be requested to complete six monthly income and expenditure statements. Her statement will therefore be reviewed on receipt of each account to establish whether her income has increased or her expenses reduced. Should it be shown that there is a surplus during this review, then an income payments order will be made for the amount of the surplus.