will they class sons dla as income for bankrupcy

morledge142

myself and partner are planning to go bankrupt as we have alot of debt.

have just this week been awarded dla mrc and lrm for son who has learning difficulties/posibility autism being assessed at present.

so we now get about £70 DLA for him and also upped tax credits with disability element and i now will get carers.

we have not paid mortgage for 3 months now and are planning to move into rented on wednesday.

will these diabilitiy payment (i also get low rate care for me) be included as income when we apply for housing benefit, council tax and go mortage.

i have just got coop account so was waiting to go bankrupt after we move.

thank you for your help.

this was out of the blue as i had tried myself for dla for past year and only got lrc but we are suddenly over £100 better off per week.
we still want to go br as we have had this round our necks for several years following business and housing mkt collapse and have now finally got the mindset to move out of ous home.
interestingly we were advised by cab a couple of years ago to not go br until we had 2 repossessed properties sold so could be included in br. or we could have done this years ago.

now advice seems to be move out of repossed home as we are doing and it will still be included in br whenever it sells we could have had alot less stress by doing this years ago if we had been advised differently as we did not want to move out of our home then as it was all too overwhelming.

curly04

they shouldnt do its his money not yours

tigerfeet2006

As Curly has said they shouldn't do. It is your son's and for his needs and not yours. Your DLA will have to go on but it should be offset on the SoA by your medical needs.

MadameCholet

I was advised by CAB that my own DLA would not be counted as income by the OR so I doubt that your sons would:)

debtinfo

anything for you would be counted as income, ie your DLA or carers allowance, Anything for your son ie his DLA would never be counted as your income

But

If your income is only from benefits then you wont have an IPA, if you have mixed earnt and benefit income then you might

morledge142

thanks for your replies.

we use my sons for visits on the bus and museums as he is not in school at the moment,, in order for him to have social interactions which he struggles with.

mine i use for massage therapy or chopped veg for cooking so i hope these can be takne into account.
thanks again.

this was such a surpise as we wwere just getting our affairs in order and set to move on wednesday then this nice surpise arrived to put everhting up inthe air again.

Ineedaname

Debtinfo - is that right about not having an IPA if income is solely from benefits? I get quite a lot as I live alone and receive DLA, so get an IS disability element top up. My SOA will probably show over £25 surplus as a result (ignoring DLA income and expenditure). I was expecting to end up with an IPA because of this.

fermi

http://www.insolvency.gov.uk/freedomofinformation/technical/technicalmanual/Ch25-36/Chapter31/part7/Annex%20A.htm

As a matter of public policy, official receivers should not seek an IPA, or IPO, where the bankrupt's sole source of income is state benefits. No calculation of real disposable income need be made in such cases.

debtinfo

Just to add a bit ore explanation, They will never take any benefit money of you. If you have mixed income the reason that you can get an IPA is that they say that you use the benefit money first to pay your own expenses and they IPA only come out of the earned part of your income

fermi

debtinfo wrote: »

Just to add a bit ore explanation, They will never take any benefit money of you.

Yes, but given recent trends I'm wondering............

From the same link above.

On the basis of Counsel's advise, once a benefit is paid to an individual, it may be considered to be income and thus, for persons against whom bankruptcy orders are made, it falls within the scope of section 310(7) of the Insolvency Act 1986. This confirms the possibility of obtaining an income payments agreement, or order, against a bankrupt whose sole source of income is state benefits.

Ineedaname

Thanks for that, essentially clear as mud then and up to the individual OR how they interpret things?