Will I lose my benefit if my social fund loan is included in my DRO?

Little_miss_skint

Hope someone can help. I'm trying to decide whether to go forward with a DRO, but I'm worried my benefits would be stopped if my social fund loan is included?

wba31

If you do a DRO you must include the social fund loan, and then the payments taken out of your benefit will stop, and you will subsequently receive your full benefit award each week. If they were to stop your benefits (as punishment or to repay the debt) they would be in breach of the order.

immoral_angeluk

A DRO has no affect on benefits. A social fund loan is not a benefit payment, but is a debt deducted from your benefits that you are entitled to apply for because of being ON benefits. After a DRO deductions from your benefit as payment of the loan will stop and the debt will be discharged at the end of the moratorium.

CookieCrisp

Oh wow this has just answered my 5th question haha! I didnt know I could include my social fund debts in my DRO form...when I fill it out should I include all social fund debt ie: crisis loans, budgeting loans or can you only do one or the other? x

immoral_angeluk

CookieCrisp wrote: »

Oh wow this has just answered my 5th question haha! I didnt know I could include my social fund debts in my DRO form...when I fill it out should I include all social fund debt ie: crisis loans, budgeting loans or can you only do one or the other? x

All of your debts owed on the date of your application must be included, regardless of what they are. Hope that helps!

dane-katie

Would they stop paying the loans as soon as your DRO is put through or not until the 12 months are up?

immoral_angeluk

dane-katie wrote: »

Would they stop paying the loans as soon as your DRO is put through or not until the 12 months are up?

Straight away the payments will cease, and the debts discharged after 12 months.