DLA and BR

Brighteyes_2

Hi Everyone,
Not been on for a while but would be grateful for some help!
If one is awarded Disability Living Allowance,is it classed as income in BR? I am sure it has to be disclosed to the OR.Any advice would be more than welcome.

DebS_2-3

You do have to disclose it but the OR should not take it into account.

And if you are still paying debts - whilst you can tell your creditor you recieve it, don't do what I did:o and use it to pay them!:rolleyes:

Good luck.

Merry_Gentry

Hiya - I think as it's a benefit it shouldn't be classed as income but you might have to fight that corner cos I think someone had to do so before

blind-as-a-bat_2

It would be counted towards an IPA but only if you had a seperate income as in a wage

it gets a bit complicated from there give me a mi and i will find the relevant bit.

But remember you get DLA to cover the extra cost of care or mobilaty due to your condition which should be reflected in your SOA anyway, hopefully cancelling it out;)

blind-as-a-bat_2

31.7.9 State benefits

April 2008

Whilst an IPA should not be sought where the bankrupt's only source of income is state benefit [note 3], the official receiver should not automatically discount the possibility of obtaining a contribution from a bankrupt who has surplus income but is also in receipt of benefit. Any calculation to identify surplus income should include all available income, including state benefits, paid to an individual for the general benefit of that individual and their family. This includes child tax credit, which is also a state benefit and comprises part of the income available to the bankrupt and his/her family, against which an IPA can be calculated. The person making the income and expenditure calculation (usually the examiner) should initially ascertain whether the bankrupt is also in receipt of non-benefit income. If this is the case, an IPA should be considered, the total income should be established (see other income sources at paragraph 31.7.7) and the bankrupt's reasonable expenses deducted (see paragraph 31.7.19) to cover his/her reasonable domestic needs. An assessment can then be made as to whether the bankrupt is in receipt of surplus income. If an IPA is to be sought, any surplus should be less than or equal to income from the source other than benefits. It should be remembered that whilst the bankrupt's total income (including state benefits) should be included in the calculation of surplus income, it is the income from sources other than the benefit(s) which is providing the payments under the IPA/IPO, which is why an IPA should only be sought to the extent of the non benefit income.

The only exception to the inclusion of state benefits in an income payments calculation is where a bankrupt is in receipt of child benefit, which is not an income based benefit (unlike child tax credit, see above). The High Court has stated as a matter of public policy that child benefit should not be included in the statement of income when applying for an IPO and there is no reason why the same principle should not be extended to cover IPAs.

Where a bankrupt’s income solely comprises state benefits, it is unlikely that a surplus will arise except where they are in receipt of non-means tested benefits, for example Disability Living Allowance. The official receiver should consider that it is always open to the bankrupt who has a surplus and wishes to contribute, to make voluntary payments. If the bankrupt was minded to contribute on a voluntary basis, having been informed that their income appeared to be sufficient to produce a surplus taking in to account their reasonable domestic needs, a voluntary agreement could be incorporated into an IPA, but it would have to be clearly noted that no enforcement action would be taken if the bankrupt failed to make agreed voluntary payments.

The Department of Work and Pensions website provides useful information regarding allowances and benefits currently in force and can be accessed at http://www.dwp.gov.uk/.

......................................

Brighteyes_2

Both my husband and I are BR,he works but I dont.I have just been awarded DLA and that is my only income.

blind-as-a-bat_2

Brighteyes wrote: »

Both my husband and I are BR,he works but I dont.I have just been awarded DLA and that is my only income.

You are assesed individually so they cant impose an IPA on you as your only income is a benefit.

there is a very slim chance they may try saying you can count it towards your share of the household expenditure thus forceing your OH,s surplus up but that is only a slim chance and if they do thats when you find a whole load of expenses to cancel it out as sugested in my first post;)


has your OH had an IPA imposed?

Brighteyes_2

No,he doesnt earn enough,I dont think.To be honest,we have had very little contact with our OR,no interview,no issues at all,touch wood.

blind-as-a-bat_2

Just to condradict everything in the Above extract from the IS site, this is part of a reply i got from the IS when asking how paying a HP agreemant out of her DLA would effect my OH if she does have to go BR

> In general terms because your wife is in receipt of DLA with the higher rate of mobility the continued payment of the HP on her vehicle would not be seen as a preferrential payment. All she is doing is the using the money given for the reason it was given.

Sort of contradict there own guidelines doesnt it

Brighteyes_2

Youre not joking! I didnt actually expect to receive anything so am extremely pleased to have been awarded it.Just want to be equipped with some info pre-informing OR.

North_East_Derbyshire_CAB

Brighteyes wrote: »

Hi Everyone,
Not been on for a while but would be grateful for some help!
If one is awarded Disability Living Allowance,is it classed as income in BR? I am sure it has to be disclosed to the OR.Any advice would be more than welcome.

Hi Brighteyes / other viewers

Disability Living Allowance (DLA) is a non-means tested benefit paid to assist with care & mobility needs, you can receive either the care component or the mobility component or both.

On a bankruptcy form / petition 6.28 you would need to put it down as income in section 6 (6.6) and then down as expenditure in section 7 (7.1) other essential payments, clearly stating Disability Living Allowance and Disibility care and / or mobility costs.

DLA should not be counted towards an IPA or IPO and in your case the same should apply even if you have been awarded DLA after your bankruptcy.

You should however inform the O/R as technically it is an increase in income after bankruptcy.

I you have any problems with the O/R and any proposed IPA or IPO relating to DLA contact your local CAB and they should advise you.

Hope this info helps.

ALLEN