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If someone owes you money how does this affect JSA?
iluvjohnsarg
Posts: 167 Forumite
There is a question on the JSA form asking if anyone owes you money.
A friend of mine took out a loan to cover a family members crisis when they were confident in their finances and job security. The family member pays back the monthly payments as and when they can.
How would these payments/loan impact on their claim for JSA if they were laid off? They would be eligible for JSA contributions, but are concerned about credits into their account to pay off the loan looking like income.
Hope that makes sense.
A friend of mine took out a loan to cover a family members crisis when they were confident in their finances and job security. The family member pays back the monthly payments as and when they can.
How would these payments/loan impact on their claim for JSA if they were laid off? They would be eligible for JSA contributions, but are concerned about credits into their account to pay off the loan looking like income.
Hope that makes sense.
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Comments
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Well it would be income if it is money coming in! However there must be money going out to re-pay the loan (unless that has already been fully paid off). As I don't suppose your friend is making a profit on the loan then the nett effect is that they are no better off. Does the form not ask about outgoings too?
What sort of JSA is being applied for, contribution-based or income-based? If you are talking about the future and the person to be laid off has been working regularly for the last 2-3 years then they would qualify for contribution-based JSA and it wouldn't matter about their income (for up to six months).0 -
LittleVoice wrote: »Well it would be income if it is money coming in! However there must be money going out to re-pay the loan (unless that has already been fully paid off). As I don't suppose your friend is making a profit on the loan then the nett effect is that they are no better off. Does the form not ask about outgoings too?
What sort of JSA is being applied for, contribution-based or income-based? If you are talking about the future and the person to be laid off has been working regularly for the last 2-3 years then they would qualify for contribution-based JSA and it wouldn't matter about their income (for up to six months).
Thanks LittleVoice.
It'll be contribution based JSA, and yes, the outgoings for the loan payments will equal those repaid, so there's no profit. The "repayments" are sporadic and don't match the loan payments month by month as they pay back what they can as and when they can. I suppose it's an informal family arrangement. The form doesn't ask about outgoings.0 -
The form doesnt ask about outgoings as it dont matter how much you pay out for bills/debts etc as it wouldnt effect the amount of JSA you get. Only income that comes in0
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