housing/council tax benefit - income or not?

bluesbro28

Hi all,
In the light of day I am going back over my forms that I have ready for my bankruptcy appointment next week. There is only one issue that i remain unsure of now.

Me and my wife are in receipt of housing benefit and council tax benefit. This does not go through us but is paid direct to our landlord and local council respectively. On the EX160A form for exemption from court fees I do not have to list these two benefits as income. Do i need to list these benefits as income on the actual bankruptcy form??

The CAB told me i needed to list the rent and council tax amounts as outgoings, but as the benefits do not come to me direct, i don't need to list them as income, but this does not make sense to me. Surely i either list it as an income and an outgoing or not at all. I have scoured the internet and all the guidance booklets for an answer to this and not one place deals with this issue so i'm a bit stuck.

can anyone answer this for me?

dojoman

Personally I would put it down. Here is what it says on the IS website:)


Section (b) State benefits


31.7.40 IPA or IPO should not be sought where bankrupt’s sole income comprises state benefits

An IPA or IPO should not be sought where the bankrupt's only source of income is state benefits. In the context of this chapter "state benefits” refers to all forms of income supplement and support provided by central or local government including, but not limited to: income support, job seekers allowance, disability living allowances, incapacity benefit, industrial injuries disablement, council tax benefit, housing benefit, state retirement benefit (state pension), child benefit and all forms of tax credit (child, working and pension). There is no requirement to undertake an assessment of real disposable income where the only source of the bankrupt's income is state benefits. In all other cases an assessment should be made even if part of the household income is derived from state benefits.

The Department of Work and Pensions website provides useful information regarding allowances and benefits currently in force and can be accessed at http://www.dwp.gov.uk/.




31.7.41 State benefit income to be included where bankrupt also receives non-benefit income

The official receiver should not automatically discount the possibility of obtaining a contribution from a bankrupt who is in receipt of benefit. The Service has obtained legal advice that once a benefit is paid to an individual, it may be considered to be income and so falls within the scope of section 310(7) of the Insolvency Act 1986. Whilst this confirms the possibility of obtaining an IPA/IPO where a bankrupt is in receipt of state benefits, as a matter of policy as stated at paragraph 31.7.40, the official receiver should not seek an IPA or IPO, where the bankrupt's only source of income is state benefits.

bluesbro28

Thanks very much! I'll put it on the form, I'd rather disclose something than not. At the very least it will prove I'm being honest.

debtinfo

Hi bluesbro28, i think you have a very good sense and from your post you can clearly see when what you are told does not look right, feel free to trust your instinct, as i said in your other thread i think your advisor needs a bit more training