state benefits and bankrupsty

caz33

hi all,

just wandered if anyone knows what benefits can be used when you go bankrupt and are given a payment order?
i recieve childtax credit,income support,childbenefit and carers allowance i also recieve disability living allowance for my 3 children.i have searched and tried to find out but it seems it varies?just trying to decide weather to go BR as i owe 30,000 but CB are trying to get me to do a informal arrangement as they said i have to much surplus but this is my childrens dla,soooooo confused and running out of time,just dont want to be in a worse situation.

thankyou

fermi

Benefits (apart from Child Benefit) can be used in the calculation of the surplus for an IPA.

But, and it is a BIG but, any IPA can only claim a % of any EARNED income.

So say you have an income of £1,000 in benefits and £300 earned income. The OR may calculate your surplus as say £500, but they can't take a percentage of the whole £500 as that would be taking a % of some of your benefit.

The maximum they could take would be a % of the £300.

Slightly strange way to do things, but it sorta makes sense if you think about it.

izools

caz33 wrote: »

hi all,

just wandered if anyone knows what benefits can be used when you go bankrupt and are given a payment order?
i recieve childtax credit,income support,childbenefit and carers allowance i also recieve disability living allowance for my 3 children.i have searched and tried to find out but it seems it varies?just trying to decide weather to go BR as i owe 30,000 but CB are trying to get me to do a informal arrangement as they said i have to much surplus but this is my childrens dla,soooooo confused and running out of time,just dont want to be in a worse situation.

thankyou

Get a letter from the GP confirming what costs your sons disability incurrs as a necessity, hence the DLA.

For example I recieve DLA, I suffer from Aspergers Syndrome and mild Sciatica. This results in (according to my GP) extra travel costs due to help required getting around and increased food costs due to a personal inability to follow recipies.

This then allowed me to largely increase my travel and food expenses on the SOA above the reccomended maximums

miss_spooky

Caz33,

Is the DLA for your children all in their names? My sons is in his name so it isn't actually mine - so to speak. There are a few posts on DLA for children and I think if it is not yours and is in someone elses name, then the OR can't touch it. I don't even think you have to declare it.

If you wanted to, you could add it in your SOA then counter it with your childrens needs & costs.

Here's the posts. http://forums.moneysavingexpert.com/showthread.html?t=1414657&page=3

I've decided not to add mine, but if the OR does ask then I will back it up with his costs.

HTH.

peachyprice

Are benefits the only household income?

crazy_blonde

Hello, I also recieve Income support, Carers allowance (I care for my dad), and Child tax credit and Child Benefit (for one child) as my only income (but no disability allowance). My OR said that said that because state benefit made up my entire income it would be innapropriate to touch it (not that I had enough surplus anyway), as a result he was'nt intersted in my outgoings at all and we skipped that section of the SOA. I don't know if this is at the discretion of the OR or a general rule. I think its most likely down to the OR and the fact that my debts are old and I have not used credit for 3-4 years may have had a bearing on his dicision as he was'nt particuarly interested in them either (we skipped that part of the form also). My debts totalled about £17000, I had no assets and was not given an IPA. I agree with izools, you should establish any extra expence their disability costs you and put in in your SOA. Hopefully your OR will also feel it is innapropriate to touch your benefits but its probably best to cover all bases.

caz33

fermi wrote: »

Benefits (apart from Child Benefit) can be used in the calculation of the surplus for an IPA.

But, and it is a BIG but, any IPA can only claim a % of any EARNED income.

So say you have an income of £1,000 in benefits and £300 earned income. The OR may calculate your surplus as say £500, but they can't take a percentage of the whole £500 as that would be taking a % of some of your benefit.

The maximum they could take would be a % of the £300.

Slightly strange way to do things, but it sorta makes sense if you think about it.

ok thankyou,we dont have a earned income just benefits at the moment.still dont know what to do!
not sure what be best going BR or informal arrangement that CAB has said.

caz33

peachyprice wrote: »

Are benefits the only household income?

yes it is,we get quite abit now as welfare rights came to see us but most off it is dla and disability premiums also income support and child tax credit and carers allowance.

peachyprice

If you have no earned income you will not get an IPA.

Once you have an earned income they can start taking some of your benefits into account and you may get an IPA.

If you do a DMP your benefits will be seen as income, which is how CAB got to a surplus of £430

Hope that makes it clearer.

caz33

izools wrote: »

Get a letter from the GP confirming what costs your sons disability incurrs as a necessity, hence the DLA.

For example I recieve DLA, I suffer from Aspergers Syndrome and mild Sciatica. This results in (according to my GP) extra travel costs due to help required getting around and increased food costs due to a personal inability to follow recipies.

This then allowed me to largely increase my travel and food expenses on the SOA above the reccomended maximums

ok thats a good idea,i have two children with autism and one other with severe athritis so has alot off mobility problems etc.they have alot off needs and i dont think citizens advice appreciated that when they were doing a financial statment.thanku!

caz33

peachyprice wrote: »

If you have no earned income you will not get an IPA.

Once you have an earned income they can start taking some of your benefits into account and you may get an IPA.

Hope that makes it clearer.

will that be even though i get quite alot due to the kids all have disabilitys?CAB have really confused me as they said to go BR then turned around and said we had to much surplus even though it is benefits,they put half of the DLA on the surplus when i argued that they said when i owe so much the creditors wont care what i need 4the kids and if i went BR the amount will be as high as £500 which there suggesting i pay on a informal arrangement.such a worry