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DLA benefits & Bankruptcy
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# 1
blueopal5577
Old 28-07-2008, 4:30 PM
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Default DLA benefits & Bankruptcy



I am currently applying for Disability Living Allowance and I'm also going to be going bankrupt either in August or September (depending on when I get the fee together). The DLA will take a long time to come through anyway but questions!

DLA is paid for people who need the support / care by an external person.

1) Because it'll be delayed, I'd probably recieve a back dated payment lump sum, (17 a week if i recieved lower rate) would the OR take this?

2)As the payment would be part of my income, would I have to pay it out to creditors? I'm worried I'm going to struggle to claim DLA, and if it comes through, it'd be disheartening to not be able to spend it to help my health.

Any advice needed,

A



My indulgence:

It didnt justify a post of its own but since the only person who knows about my BR intention in real life is abroad I'm going to share: I just rang the court! I feel sick because I nearly had a panic attack just talking to them but yes! At the moment they can book me in for the following week, and the OR interview is the next day and... thats it! I can smell freedom!


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# 2
shadowdragon
Old 28-07-2008, 4:34 PM
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I am in receipt of DLA, which I spend on running my car, and the OR was ok with that. I know when calculationg Housing Benefit ect they cant take DLA into consideration. And they dont enforce a IPA if you are on benefits. I honestly dont know about the lump sum though. Hopefully someone will know.
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# 3
Dez-Titute
Old 28-07-2008, 4:41 PM
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Hi Blue,
If you get the back pay prior to BR you could use it towards BR fees or a nice new bed.
The triumph of hope over experience

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# 4
Waspeze
Old 28-07-2008, 4:44 PM
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Quote:
Originally Posted by shadowdragon View Post
I am in receipt of DLA, which I spend on running my car, and the OR was ok with that. I know when calculationg Housing Benefit ect they cant take DLA into consideration. And they dont enforce a IPA if you are on benefits. I honestly dont know about the lump sum though. Hopefully someone will know.

Quote:
31.7.10 Arrears of benefits received post bankruptcy

Occasionally, where a bankrupt is in receipt of benefits he/she may receive arrears of benefit payments as a post bankruptcy receipt (prior to discharge). Where this happens, because state benefits are excluded from the bankruptcy, the arrears of benefit (including tax credits ) cannot be claimed as a vested asset because they are state benefits. It may however be possible to claim the monies under the income payments provisions of the Insolvency Act by agreeing a single payment agreement with the bankrupt as a voluntary contribution. Any arrears of benefit claimed in this way should not include any child tax credit benefits.

N.B. official receivers must ensure when dealing with arrears of benefit in this way as a voluntary contribution, that the payment does not represent an overpayment, which has been paid to the bankrupt post bankruptcy and which can be recovered after discharge in specific circumstances.


This is for normal benefits .. not sure about DLA though as I don't think it's counted as normal income?
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# 5
Dez-Titute
Old 28-07-2008, 4:49 PM
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Blue,

Take a look here and maybe give them a call

http://www.mind.org.uk/News+policy+a...y/Benefits.htm
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# 6
blueopal5577
Old 28-07-2008, 5:05 PM
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Wow that was quick.

Excellent. You're right Dez, a bed would be bloody good, as would BR!

Reading that quote, although DLA is slightly different, I think the same will apply since if I owed them for an overpayment or similar, it couldnt be included in bankruptcy.

What would i do without this board?

These are the questions that are more difficult to google!
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# 7
DebS
Old 28-07-2008, 7:21 PM
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My DLA wasn't taken into account at all.

Good Luck.
Deb Bankrupt 04/07/08 12.15pm

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# 8
philnicandamy
Old 28-07-2008, 7:28 PM
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Ditto.....My DLA was not taken into account..although the OR did question how much I received & what i'd have done with the cash if I'd not put towards a motability car
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