Depression, debt and bankruptcy

tigerfeet2006

Tinytootz, who ever told you that you didn't have to tell the OR that your OH had moved in was talking a load of swollacks. It is a change in your circumstance and needs to be notified as per the legsl documents you signed. Your OH would be contributing to your household thus altering your outgoings. So do please be aware of this.

tigerfeet2006

lucydiscodiva wrote: »

Thankyou thats very very helpful.
I went to CAB and the guy was completely unsympathetic
He also seemed to suggest my depression wasn't real even though i 'm on meds and
Have felt suicidal about my debts.
Thanks for your help

That's the problem with with these different agencies, they are only as good as the people who are there and while some CAB's are excellent, some leave something to be desired. If you feel up to it please write a letter of complaint to them.

Do you know if he was an ordinary Joe or a Debt Specialist? That can make a huge difference as well.

lucydiscodiva

He was like a triage CAB assessor- seeing if you were allowed to have another appointment which would be more in depth.
Thanks x

Tinytootz

I know, that is why I opted to do it the other way round, moved him in and told them about him on the form, as he is now on the electoral roll so I figured I would so easily get found out! As it turns out, the only difference was I had to pay the court fees as our combined earnings were about the £18k threshold, but my earnings were too low to leave me with anything to pay the OR. I did have one CAB advisor who was useless, he even remarked how he had never seen a bankruptcy form before, and he was supposidly (sp) a specialist at this. I did put a complaint in about him. It can be a bit hit and miss, but perhaps getting advice from as many 'free' outlets as possible would be a good way to go.

tigerfeet2006

lucydiscodiva wrote: »

He was like a triage CAB assessor- seeing if you were allowed to have another appointment which would be more in depth.
Thanks x

Well there we are then. Letter of complaint me thinks as you didn't get the help and support you needed at a time of need' the gentleman needs retraining.

If you would like a second opinion as well give National Debtline a ring and go through your options with them, number and link on the Look Here First thread

Ineedaname

Hi Lucy - just a thought, but if you receive DLA then your medical needs gym membership should come out of that money and the OR can't take DLA from you in an IPA.

The allowances in BR are very generous and I would think on a part time income you probably wouldn't have enough left over to pay an IPA anyway, not many people do. All depends on your home circumstances e.g. if you live alone, have kids etc.

Think of it this way, you are having a hard time paying £40 a month on a DMP against 20k debt right now. If you kept it up it would take you about 20 years to pay everything off. If you go BR and do have to pay into an IPA, it's only for 3 years and then your money is your own.

dojoman

Even if you are on DLA but also earning then the DLA still counts as income.

Ineedaname

Although DLA is counted as income for working out an IPA, the OR cannot take any of it from a BR. In addition, the DLA can be accounted for with health related expenditure that would not normally be allowable on an SOA.

dojoman

Ineedaname wrote: »

Although DLA is counted as income for working out an IPA, the OR cannot take any of it from a BR. In addition, the DLA can be accounted for with health related expenditure that would not normally be allowable on an SOA.

So are you saying that DLA is to be discounted from your income if you are earning a wage as well? Because that is how it is coming across to me.

Taken from the IS website.

My income is made up of state benefits and money I earn from working. Will I have to pay under an IPA or IPO?
The official receiver will look at whether you have any non-benefit income. If you do, you may have to pay under an IPA. What you need to cover your and your family’s reasonable day-to-day living expenses would be deducted from your total income - including all state benefits. This would show whether you have any disposable income. If the official receiver is going to ask you for payments under an IPA, the amount of any payment would have to come entirely from any income that is not benefits. The official receiver would include your total income (including state benefits) in the calculation of surplus income, but only the money you earn from working would provide the payments under the IPA or IPO.

Ineedaname

dojoman wrote: »

So are you saying that DLA is to be discounted from your income if you are earning a wage as well? Because that is how it is coming across to me.

TIf the official receiver is going to ask you for payments under an IPA, the amount of any payment would have to come entirely from any income that is not benefits.

I was actually saying what's quoted in the paragraph above. The OR cannot take DLA in an IPA.

However, as it is awarded for help with care and mobility needs, I am also saying that a BR could include specific health related expenses in their SOA. Ones that otherwise wouldn't be allowed. They can run a separate column for DLA expenditure, either detailing everything or just showing a total. So the DLA can be fully accounted for so it doesn't add to any surplus.

In other words, although it can be included as income, it can also be fully accounted for effectively cancelling itself out. All because it's awarded for a specific need due to a person's disability.

For instance, if the OP receives DLA low care element and puts their gym membership against that amount then they shouldn't have to justify the need for that expenditure. It is a health related expenditure and DLA is used to fund it with the DLA being awarded for 'help with care needs'. The OR is not in a position to say the OP doesn't need that help or dictate what the OP can use their DLA to pay for.