Depression, debt and bankruptcy

dojoman

The OR does not have to allow gym membership, I know, as mine was refused and it was backed up by a letter from my GP. I still don`t agree with your thinking and the way you have worded one of your posts, but I am not going to get into another drawn out discussion with you, so I will make this my last post on this thread.

andyf1980

Ineedaname wrote: »

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.

Good point well made INAN. When I filled out my SOA I included £80 a month for counselling (I'd suffered from depression for many years and was hospitalised the year before br). The OR did question it but I asked them if they'd seen the waiting list to be seen on the NHS Heard nothing back after that.

Ineedaname

But Dojo, were you funding yours from DLA? If not then it is up to the individual OR whether they allow the 'extra' or not. If it's funded from DLA then as I said above it's not up to the OR to declare whether it's necessary expenditure or not. The reason being that DLA has been awarded for care and/or mobility needs and the BR is using the money for those reasons.

Would you see it reasonable for an OR to disallow a Motability car?

Once again you take the stance that because it happened a certain way for you then that's the way it is. We all know each OR is different for starters. Plus I'm talking about paying for health related costs out of a health related benefit, which I believe is different from your circumstances anyway.

Ineedaname

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.

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.

Dojo, this clearly says "DLA is counted as income for working out an IPA" so I don't know how you've read that as I'm saying it's not.

All I said was that all DLA can be accounted for, not that it is discounted.

If you remember a thread from earlier this year I believe several experienced members agreed all the BR had to do was put xx DLA income and the same amount under "health related expenses" to cancel it out. So I'm not saying anything that hasn't been said before.

davidgmmafan

"Also how come my friend who went BR not owe her creditors anything? She doesn't have to give them anything."

I really think you are placing too much faith in this person they paid to sort it out. I did everything myself and the only thing I'm paying is the tax I would have paid.

Now onto the SOA or expenses themselves. I have to be careful what I say here as the rules are very clear. You cannot put things down that you cannot justify like putting down more rent than you pay. You could however include it if you rent had legitimately increased. You can claim for hair cuts, but as often mentioned on here this could be a little difficult if you were bald and had a face to face interview.

I would therefore suggest you start by posting an SOA. If, in compiling this, you find yourself guessing at certain amounts like shopping for example this is a good thing. What this shows is you NEED to keep a record of what you spend. It may be more than you think which can help with the figures.

I think its worth taking a more long term view now. Even if we can't find some wiggle room in the figures at forty pounds per month I reckon it will take over 40 years to clear the debt. This isn't really suitable for a DMP, unless there is some change in circumstances expected.

So its potentially three years IPA versus forty years of paying forty quid per month and the the creditors can start adding charges again of hassling you whenever they feel like it.

In bankruptcy you will not have to pay money you don't have. You are entitled to a reasonable standard of living, and setting an amount you cannot pay is a waste of every bodies time. I do have some figures with regards to allowances which I used for information ONLY but I think it is best to work with what we have.

Anybody looking at the figures can tell easily if you have massaged the figures to fall just below the allowance. They can ask for proof of expenses like reciepts for shopping, tenancy agreement for rent or statements for utilities. You have a duty to co-operate in bankruptcy, but as I have said many people find the spending they have is more than covered.

It was easier under the old rules and I think anything up to a hundred pounds were allowed, but in my case the OR didn't bat an eye lid at the small amount for put down for holidays. This is exactly what I would do if I were the person working through forms using the new (harsher) system.

Good luck.

kepar

OFF topic David but you should check your signature.

Mixed Martial Arts is the greast sport known to mankind

Maybe it is the greast but it is not the greatest sport.

davidgmmafan

I know I've been trying to change that for weeks but it never allows me to update it, perhaps if I try from another computer...