Full time student going LILA route but worried about income query please..

yesican

Change in my affairs

coolcait

momofone wrote: »

Hi guys,
I could really do with your question please,
Im a full time student on the verge of going bankrupt via LILA route and ive got a question that is really burning at the moment.

One of the LILA route requirements is that, income should be under £229 per week (can it be 230ish please?)My reason for asking,Im currently getting

Student loan-(from my understanding,the student loan is a def no no)
SAAS
Housing Benefit
Child benefit
Child tax credit.
Discretionary fund

What is classed as income from the above benefits please?

All of it will be classed as 'income'. If your total income is less than 237.20 per week (before tax), that would be under the LILA limit. Also, as that is based on the National Minimum Wage rate, it might go up a bit at the beginning of October.

Your response will really be appreciated.
FYI-I dont have any assets,savings under my mattress of £3k!

I'm afraid that money counts as an asset, and would put you over the LILA limit.

(Dont trust the flaming banks!!)

Thanks again guys...

The note son the debtor application form are quite helpful in answering the questions which come up a lot -

http://www.aib.gov.uk/publications/debtor-application-pack

HTH

yesican

Thank you very much for your response CoolCait...You've pretty much answered all my questions-i cant thank you enough... :-)

All the best...

Raphael

coolcait wrote: »

All of it will be classed as 'income'. If your total income is less than 237.20 per week (before tax), that would be under the LILA limit. Also, as that is based on the National Minimum Wage rate, it might go up a bit at the beginning of October.

Are you sure that ALL of it will be classed as income? I went BR through LILA over a year ago and I seem to remember Housing Benefits didn't count towards the weekly limit (but it was taken into account later on when they went through my income and expenditure to assess how much I had to pay for an IPA).

coolcait

Good question Raphael. I'd overlooked the housing benefit. There's more detailed info about 'income' in the AiB debtor's guide, which probably explains things better -

"If you receive income support, income-based jobseekers’
allowance, working tax credits, pension credits, employment
and support allowance, housing benefit or council tax benefit
you will be treated as meeting the low income test, even if
your actual income is more than £237.20 a week.

When calculating your income, to assess whether you meet
the low income criteria, social security benefits or tax credits
you receive or any income received by another member of
your family will not be counted.

However, your income, pensions, maintenance payments,
benefits, tax credits and the income of other family members
may be taken into account when considering whether you
should pay a contribution towards your bankruptcy."

http://www.aib.gov.uk/sites/default/files/publications/Debtor's%20Guide%20PDF.pdf

The money under the mattress still rules out LILA, unfortunately. However, at least nowadays the OP has the option of getting a Certificate for Sequestration, instead of having to wait for a creditor to get a Charge for Payment.

good luck with it all, OP.

yesican

Thank you very much for your support guys.Ive decided to go via LILA route in MAY 2012 ! (I know its far away but i wont be earning as much then).Hopefully,there wont be any changes in the requirements or anything for related to LILA.

Thanks again.