About to go DRO but just had increase in ESA.

portofcall
portofcall Posts: 53 Forumite
in IVA & DRO
I was just on the cusp of submitting for an DRO application when I received an increase in my ESA - They have started paying my Severe Disability Premium which is an increase of 63 pounds a week.
:(
Please tell me if this affects my application for a DRO and should I still go ahead with the submission?

Comments

  • sourcrates
    sourcrates Posts: 28,825 Ambassador
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    Hi,

    In a Debt Relief Order, DLA or PIP is counted as “income”, I assume ESA will be treated the same way, however there will be a line added into your “expenditure” that is for the same amount as for your “disability expenses”. This means that you will often pass the “not more than £50 a month surplus income” test for a DRO, even if you are currently paying more than that amount to your creditors.

    So the government agrees that disability benefits are required for everyday expenses and shouldn’t be used to pay your creditors.

    You should discuss this with your intermediary.
    I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter
  • National_Debtline
    National_Debtline Posts: 7,998 Organisation Representative
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    Hi Portofcall

    You will have to tell your intermediary about the increase in your ESA and amend your statement of affairs (SOA) accordingly. Unfortunately the ESA cannot be disregarded as an income but you may find it allows you to budget a little more comfortably for things like your food shopping.

    If overall you still have less than £50 per month available for your debts you will still meet that particular condition of the DRO. Will you be receiving a backdated award? The other thing to be aware of would be a lump sum payment that might take you over the £1000 asset limit.

    Susie
    @natdebtline
    We work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps
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