Low Income Low Asset (LILA)

FROM 1 April 2015 LILA is no longer a viable route into bankruptcy, please refer to the current Bankruptcy section for more details. 

LILA is the route into bankruptcy for people who have low income and low assets.

Low income means gross weekly income of no more than the standard national minimum wage for a 40 hour working week. The national minimum wage increases each year in October and is currently equivalent to £247.60 a week.  Details can be found on the HMRC website. Any pensions or maintenance payments that you receive are also counted in with your income.

If you receive income support, income-based jobseekers' allowance or working tax credits you will be treated as meeting the low income test, even if your actual income is more than £247.60 a week.

When calculating your income no account will be taken of other social security benefits or tax credits you receive or any income paid to another member of your family. However, your income, pensions, maintenance payments, benefits, tax credits and the income of other family members may be taken into account when considering whether you should pay a contribution while you are bankrupt.

Low assets means that you have no single asset worth more than £1,000 and your total assets are not worth more than £10,000. In addition, it means that you must not own or jointly own a house or any other property or land.