Income and DLA in Bankruptcy

Emmamumof2

So a few of you will know that I was declared bankrupt a few weeks ago and had OR interview last week. I have an IPA of £108 based on income (Im SE and work as and when I can from home). I have just been diagnosed as Bipolar type 1 with Psychosis which affects me to such a level that my CPN has encouraged me to apply for Disability Living Allowance (not least to possibly pay for a Psychiatrist on a regular basis as the one Im seeing via the NHS wont be able to see me fortnightly as he has been forever).

If I apply and receive this (DLA) it is meant to be used to help me make adjustments to pay for things which can ease some of the problems caused by the Bipolar. These arent things an OR or Moonbeever would view as essential in the income/expenditure but they would see the extra money coming in from the DLA. For example, a gym membership, I have read exercise/swimming has helped some with bipolar and is something I may consider once the medication has pulled me out of this extremely depressive episode.

How would this be treated by Moonbeever? They would see XX extra coming in and I think would try to increase the IPA as they wouldn't see that the money is meant to be used to help ease some of the troubles brought on by the Bipolar....has anyone any experience of this? Or if I tell them what Im using the money for, even if they dont view normally as essential, would they take into account the special circumstances?

At the moment its likely Id just reduce some work to try and take more of a breather if I was awarded anything from DLA but I am trying to be more positive and think about what it could be used for, if I am deemed eligible, to try and make things that bit easier for me in terms of the Bipolar.

Thank you for any help you can offer.

Ineedaname

Hi Emma.

Obviously, you will need to tell the OR of a change in financial circumstances. But it's easy enough, all you do is put the DLA separately on your SOA and then put a new line in expenditure for exactly the same amount called "health related expenses". As you say, the money will be given to you for additional expenses due to being ill, so as far as I'm concerned, nobody should ever be allowed to touch that.

Unfortunately ORs apparently can take DLA into account when working out surplus, although they can only take your earned income in an IPA.

Emmamumof2

Hi there INAN,

Yes I mentioned this to the OR in interview and she said they would take extra from earned income not touch the DLA but as its given you to manage your disability so would they take account of the fact that things like a gym membership to swim (which Ive read helps some with Bipolar) would not normally be an accepted expense but it would as its paid for from disability benefits?

Im not pre-emting anything here I just think if I go through the rigour of applying for DLA, which I understand is difficult to obtain for mental-health related illnesses, I just would like to think I could try to benefit my illness with anything awarded instead of it going to an IPA, else I might as well not take the time to apply, if you understand what I mean.

Im not being spiteful but if my illness couldn't be helped by any funds awarded I wouldn't want to aggrevate with the stress of applying if you understand what I mean.

Thanks again and as always INAN.

Ineedaname

I totally understand Emma and that's why I think it is so wrong for anyone to be able to count DLA as income, for which we then have to justify expenditure.

It should be fine for you just to put as I suggested above, "health related expenses", as you may want to save some of the money for a few months towards a specific health expense, so it's difficult to account for all of it every month if you detail everything you spend the money on.

debtinfo

The OR is not going to argue with anything that your doctor or Psychiatrist specifically puts in writing, so i would ask them to do that for anything that they think would help your condition