Debt relief order and crisis loan question

preciousillusions

Hey, i was wondering if anyone here could advise me on what to do with a small problem i am experiencing.

I went through the process of attaining a Debt Relief Order yesterday and have been told i will receive a letter early next week to confirm this. I had to include on the order a balance for three crisis loans i owed for as per guidance from the guy who processed the order.

I got the crisis loans a couple of months ago and nothing had yet come out of my benefits which had confused me a bit. However, i received my incapacity benefit today and it has been reduced, i assume because they have started to take back the crisis loans i had.

But as i said i included the balance for the crisis loans on my DRO application which means they should be taken care of. Is there any way of getting the money back from the DWP now they have started to take it? & will they continue to take more from my benefits even though the DRO includes the crisis loans?

Obviously i need to ring the DWP but as it is past 6pm and a weekend now i won't be able to get through to anyone. Which is why i thought I'd ask here if anyone knows what will happen or if anyone has experienced anything similar. I think probably this must not be such a rare occurrence with benefit claimants going bankrupt or into debt relief orders where a crisis loan debt is included, but i am not sure what to say when i call them next week.

I could really do with the money they have taken for living expenses though as it is all i am living off and of course that is why i took out the DRO, as i couldn't pay anyone anything back. Not sure the DWP will give it back though as obviously they want their money which is fair enough i guess.

Thanks in advance for any replies .

fatbelly

As I understand it the current position is that the DWP are saying that they will take deductions from benefit during the moratorium period (one year). As most crisis loans are repaid in that period the applicant is not getting relief from that debt. The CAB are looking for a test case on this issue.

Do you fancy popping around to your local bureau?

preciousillusions

Ah okay. I will probably give the CAB a ring on Monday then just to be sure, thank you! xx

preciousillusions

*bump* Just wondering if anyone else has any more advice/experience with this at all? If i get no more replies i willl let this sink promise but just wanted to check first as am still unsure about what to do if anything.

debt_doctor

Hi,
The guidance to intermediaries changed about 1 month after my earlier post in a thread in August.
There is currently nothing you can do to stop deductions during the 1 year moratorium period, but the amount deducted must not cause you 'hardship'.
You should apply to the DWP to have the amount reduced.

Citizens Advice specialist support unit (SSU) are looking for legally aidable clients who have been affected by this situation and intend to challenge the DWP in the high court through a judicial review to have these deductions overturned.
They are also meeting with ministers in January 2010 to get the ridiculous 'pension fund' rule overturned too.

DD