What would you do?

mayfield_2 · 9 October 2007 at 10:23PM

Hi Chubaa

I am also disabled with a disability pension. I was told that if you go bankrupt, you will lose your DLA for good. I was told this by the CAB. Be careful about making yourselves bankrupt, because you could be worse off.:eek:

Chubacca · 9 October 2007 at 10:26PM

lunar wrote: »

I still think it will be helpful for you to post your SOA on here. i have roughly the same debt and if i pay £900 a month onto the debt, my debt free date is april 2011. im not on a dmp, so im still paying lots of interest at the min

Thankyou for your suggestion. I can't see how the snowball would help for me, since I am paying the very minimum on each debt which amounts to £900+ per month - I truly could not afford a penny more

I thought the idea of a snowball was to pay the minimum on each debt, and pay off more on the one you have decided to clear first - I can't do this sorry

Chubacca · 9 October 2007 at 10:28PM

mayfield wrote: »

Hi Chubaa

I am also disabled with a disability pension. I was told that if you go bankrupt, you will lose your DLA for good. I was told this by the CAB. Be careful about making yourselves bankrupt, because you could be worse off.:eek:

Is this true? Why would you lose DLA? I don't understand???

Can anyone confirm this?

southernscouser · 9 October 2007 at 10:32PM

Chubacca wrote: »

Is this true? Why would you lose DLA? I don't understand???

Can anyone confirm this?

It's not something I've heard of before! But I can't say it's not true! Check on the BR board.

lunar · 9 October 2007 at 10:38PM

i might e wrong, im sure someone will correct me if i am, its about keeping paying £900, as you pay off your minimum each month they slightly reduce your next payment on credit cards, so if you pay the difference they reduce it by each month you will be paying more off the total of your debts. you can still have a look at the calculator at www.whatsthecost.com

i think the idea is to keep paying the same amount every month the debt will be gone quicker

RosieMacDoo · 9 October 2007 at 10:40PM

your DLA wouldn't be affected by bankruptcy - I think the confusion comes in because the courts disregard your DLA as income when you present your SOA for bankruptcy (which works to your advantage...)

The way I see it is that if a professional debt adviser working for a reputable company like CCCS has told you that bankruptcy is a suitable option then I'm sure it would be ok....

Rosie x

fermi · 9 October 2007 at 10:43PM

mayfield wrote: »

I am also disabled with a disability pension. I was told that if you go bankrupt, you will lose your DLA for good. I was told this by the CAB.

Completely untrue. That CAB advisor needs some re-training.:rolleyes:

Chubacca · 9 October 2007 at 11:02PM

I hope it is untrue, this is making me suicidal with worry now - I am petrified, literally.

I seriously now am confused. My DLA is due for renewal in a few months, and I really need it as my electric costs me £90 per month as we have no central heating and have to use electric heaters for me to keep warm.

I have to use heat patches each day for pain which cost a fortune, and my dietary needs are such that I have to eat and not miss a meal otherwise I am throwing up everywhere (partly to do with all the medication I am on)

Gosh I am really worried I feel like ending it all

I have to spend 90 per cent of my life in bed, and if my DLA was taken from me I would be cold and in more pain and there seriously would be no point in living anymore.

The pain is similar to stage 3 cancer when in a flare, and I would be in a permanent flare with no heating

lunar · 9 October 2007 at 11:11PM

i cant believe you would loose your DLA, but i dont understand what happens with bankruptcy so i couldnt say for sure, i just dont see why they would stop it.

what are the heat patches you use, can you get them on perscription? if your not sure you can pm me if you dont want to post it and i can find out if you can get any on the nhs.

i know its a frightening time facing your debts and i think we all think about ending it at some level. you need to start a new day tomorrow and try to speak to a different advisor and get correct info, also there will be loads more people logged on in the day to help.

RosieMacDoo · 9 October 2007 at 11:14PM

Please don't be concerned - your DLA would NOT be taken from you in bankruptcy I can assure you.... call your CCCS advisor back tomorrow for reassurance....

Like I said earlier I think someone has got their wires crossed somewhere down the line, I'll try to explain how it works to put your mind at rest.....

When you apply to go bankrupt, you have to present a copy of your budget (SOA) to the court so they can see if you can afford to pay anything at all back towards your debt. If you have some surplus available for debt repayments, then the court can order you to make repayments (through the Official Receiver) towards the debts you have for a period of 3 years. (Bankruptcy is over after 12 months, but payments can last for 3 years)

HOWEVER the courts will not include your DLA as income on your budget, as they see DLA as a non-assessable benefit (because it is paid to you due to your disability and you need that money because of your disability). So in your case, you said your budget showed you had £220 per month available to repay your debts... if your DLA was, for arguments sake, £200 p/m, then the courts would not consider that in the calculations and would therefore only consider you to have a £20 surplus available to repay debts.

I hope that makes sense and hasn't just confused you even more..... give your CCCS adviser a call back tomorrow morning if you're still worried - I'm sure they'll be able to explain it much more clearly than I just have!!

Rosie x

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