Dwp debt managment can not keep up payment help

liverpoo

Hi All,
I wondered if you could help or advised me, as i need to pay back approximate £12,064 back to DWP Debt Managament, i usually paid approximate £40 or sometimes £ 20 and this may not be regular.

I do get reminder noticed if i do not make the payments.

They usually send me the income/expenditure form and i fill it in and send it off.

I agreed to pay back the money £20 a week, but i am now struglling to pay back the money i owe the DWP.

I do not what will happned if i do not keep up with the payment or the last case just can not afford to pay back the debt off.

Can they write the debt off, as i am struggling for means, as the company i worked for reduced hours and i got other loan to pay off which i borrowed money to purcahse the house.

I am in deep trouble.

Please help.

verystupidwithmoney

Hello and welcome!

Could you maybe fill out a SOA:

http://www.makesenseofcards.com/soacalc.html

check

https://forums.moneysavingexpert.com/discussion/107280

for further explanation. Post back here and people can help further :cool:

Hannah_10

If you can do the SOA that should show us in detail everything we need to know to be able to advise you.

BLT_2

liverpoo wrote: »

Hi All,
I wondered if you could help or advised me, as i need to pay back approximate £12,064 back to DWP Debt Managament, i usually paid approximate £40 or sometimes £ 20 and this may not be regular.

I do get reminder noticed if i do not make the payments.

They usually send me the income/expenditure form and i fill it in and send it off.

I agreed to pay back the money £20 a week, but i am now struglling to pay back the money i owe the DWP.

I do not what will happned if i do not keep up with the payment or the last case just can not afford to pay back the debt off.

Can they write the debt off, as i am struggling for means, as the company i worked for reduced hours and i got other loan to pay off which i borrowed money to purcahse the house.

I am in deep trouble.

Please help.

Of course they are not going to write the debt off, you have already admitted you have taken out other loans to buy a house. They are a financial organisation not a charity.

Work out how much you can afford and put a proposal to them.

liverpoo

Hi All,
I will fill in the details and will send it by Monday/Tuesday.

Thank you all for your reply.

So DWP Debt can not be written off and worst senario would be court proceeding and prison sentence.

NorthernLas

If you are struggling with paying back debts it may be worth you speaking with one of the debt charities who can offer you advice for free.

Have a read of this thread https://forums.moneysavingexpert.com/discussion/2077631

A statement of affairs is the first step, this will help you work out what you can afford to pay back.

Sorry, but the debt will not be written off.

Court proceedings may be an option for DWP, though recovery via benefits is also possible (I don't think prison is an option)

liverpoo

[tt]Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household......... 1
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 404.21
Partners monthly income after tax....... 0
Benefits................................ 541
Other income............................ 0
Total monthly income.................... 945.21
Monthly Expense Details
Mortgage................................ 200
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 122
Electricity............................. 60
Gas..................................... 93.14
Oil..................................... 0
Water rates............................. 22.88
Telephone (land line)................... 32
Mobile phone............................ 15
TV Licence.............................. 11.88
Satellite/Cable TV...................... 0
Internet Services....................... 20
Groceries etc. ......................... 200
Clothing................................ 100
Petrol/diesel........................... 60
Road tax................................ 10.41
Car Insurance........................... 550
Car maintenance (including MOT)......... 150
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 20
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 300
Contents insurance...................... 100
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 20
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
3 star service contract................. 180
Total monthly expenses.................. 2267.31

Assets
Cash.................................... 100
House value (Gross)..................... 130
Shares and bonds........................ 0
Car(s).................................. 1500
Other assets............................ 0
Total Assets............................ 1730

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 6725.....(200)......0
Total secured & HP debts...... 6725......-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
Total unsecured debts..........0.........0.........-

Monthly Budget Summary
Total monthly income.................... 945.21
Expenses (including HP & secured debts). 2,267.31
Available for debt repayments........... -1,322.1
Monthly UNsecured debt repayments....... 0
Amount short for making debt repayments. -1,322.1
Personal Balance Sheet Summary
Total assets (things you own)........... 1,730
Total HP & Secured debt................. -6,725
Total Unsecured debt.................... -0
Net Assets.............................. -4,995
[/tt]

NorthernLas

I think you may have got some of your figures mixed up e.g. you have car insurance as £550 a month. Check they are all monthly or divide by 12 if not.

debrag

your insurances seem very high, poss that is the yearly figure, cut out clothing for a few months or cut down. Are you getting all benefits for 2 adults & 1 child?

Tixy

liverpoo wrote: »

[tt]Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household......... 1
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 404.21 can you increase your hours?
Partners monthly income after tax....... 0 is your partner looking for work? could they get a job evenings/weekends or at different times to what you work to save on childcare costs?
Benefits................................ 541
Other income............................ 0
Total monthly income.................... 945.21
Monthly Expense Details
Mortgage................................ 200
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 122
Electricity............................. 60
Gas..................................... 93.14 looks very high - do you have arrears? if not then reduce usage and switch to a cheaper provider
Oil..................................... 0
Water rates............................. 22.88
Telephone (land line)................... 32
Mobile phone............................ 15
TV Licence.............................. 11.88
Satellite/Cable TV...................... 0
Internet Services....................... 20 can you combine with landline and get cheaper (combined deals start at around £20 compared to your £52)
Groceries etc. ......................... 200
Clothing................................ 100 reduce this down by at least 60%, essentials for the child only,
Petrol/diesel........................... 60
Road tax................................ 10.41
Car Insurance........................... 550 is this annual cost? if so £45
Car maintenance (including MOT)......... 150 - is this annual if so £13
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 20
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 300 annual? £25
Contents insurance...................... 100 annual? £8
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0 budget something small here
Haircuts................................ 20
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
3 star service contract................. 180 what is this for?
Total monthly expenses.................. 2267.31 £1258

Assets
Cash.................................... 100
House value (Gross)..................... 130
Shares and bonds........................ 0
Car(s).................................. 1500
Other assets............................ 0
Total Assets............................ 1730

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 6725.....(200)......0
Total secured & HP debts...... 6725......-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
how much do you owe DWP? what were you overpaid? how long does it date back over?
Total unsecured debts..........0.........0.........-

Monthly Budget Summary
Total monthly income.................... 945.21
Expenses (including HP & secured debts). 2,267.31 1258
Available for debt repayments........... -1,322.1 -313
Monthly UNsecured debt repayments....... 0
Amount short for making debt repayments. -1,322.1
Personal Balance Sheet Summary
Total assets (things you own)........... 1,730
Total HP & Secured debt................. -6,725
Total Unsecured debt.................... -0
Net Assets.............................. -4,995
[/tt]

You need to look at your insurances/car servicing costs. If they are all annual then you are actually short by £313 rather thabn £1322 each month. But that is still a shortfall so you really need to
increase your income or reduce your non-essential expenditure.

Are your mortgage figures correct? how much do you owe on the mortgage? is your house value £130,000?

You havn't included the DWP debt in your list of debts. How much do you owe? what was they debt for? have they not tried to take back some of the overpayment by deducting it from your benefits.

DWP will not wipe off your debt, in fact it is one of the few debts that are never wiped off. They could take you to court for up to 6years but even after that they can recover it from any future benefits.

liverpoo

I only work and my wife has depression, as sh can be happy and sometimes moody. My son is hard work, as he can not dress himself nor eat himself.

Car insurance, Building and content insurance, car maintenance this should be for the year.

My wife she keep spending on the shoes, dress and purses and i have told her so many times, she never listen to me, i think it woman thing.

3 star is the bolier protection for the year.

Gas and electric are high due to victorian house with high ceiling and winter is very cold, so heating is mostly on at morning/evening weekdays and weekends all day. Gas fire all day during winter in 1 room.

Electric oven, iron, microwave, as these take lot of electricty used.

My debt is with Department for Work and Pension@ Debt Managment. It is going back 2002 and started paying the from 2006, as i had savings to do renovation on the house and i did not notify the DWP, as i was going to spen the money on the essential repairs on the house. Dwp said as you did not notify us we want the money paying back, so in total it was around £14,000 apporximate. I