Question:

I am considering going bankrupt as I am due to leave the UK soon and cannot find the means to continue paying my debts once I leave. I owe nearly 10K. However there is a possibility that I might get commisioned by a UK based game developer to write a piece of software, say in the region of 5K (I don't know how much just yet, but its unlikely to be much more than this). If this comes about this, and the eventual royalties, which again wouldn't be much, in the first year at least, as its not a highly popular field of research. I currently earn about 12 K a year working part time in London, and I break even after paying the bills and the loan and credit card installments. If I do go bankrupt and return to the subcontinent, I will not have any other income for the first year apart from the commision to write the game, but my outgoings would be considerably less compared to the UK, say 3K for the first year.

Would I have to discolse my commision and the eventual royalties to the OR as this would not be strictly an 'increase' in the income (its actually a decrease of income; having said that there's an increase in the disposable income)? I wouldn't necessarily want to pay out from the meage savings as I wouldn't know if and when I would be able to commision another work and would like to keep it for a rainy day...And what is likely to happen if I did disclose that I have earned a commision and the posibility of earning the royalties as well...which altogether wouldn't be more than whagt I earned in UK--at least for the duration for the bankruptcy.

Answer:

Whilst bankrupt you are required to report any changes in your finances to the Official Receiver so yes, you would need to advise them of your earnings.

As to if they would want this for the bankruptcy I cannot say. You are allowed to work and earn wages and have your usual expenses.

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Jon

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