Debt Administration Order

mr2jay

Hey Guys

I have a question my Mother has asked me to put forward to you.

Since I have started my journey to being debt free, this has prompted my Mother to look at her own situation.

She has contacted the National Debt Helpline (I think) who have given her 3 options in her situation. She is unable to work, is living on DLA and ESA and, without her DLA, has a monthly disposable income of about -£120 - with the DLA her disposable income is £36 per month.

Now, her debts are about £4,000 but I don't know the exact numbers and one option brought forward to her was a Debt Administration Order. The question she needs to know is "Does her DLA get counted toward her income?"

Any help guys would be much appreciated :beer:

fermi

One of these? Assuming they have a CCJ already?

Administration orders in the county court

If so, then you would have to list the DLA in the income section. Whether they take it into account is another matter. Even if they did, then it should be offset against necessary costs the court could not argue against, so presumably wouldn't be an issue?

Alternatively, did they mean one of these?

Debt Relief Orders (DRO)

mr2jay

Thanks for the advice Fermi

When I initally spoke to her, she was fully expecting to go for the first one (Debt Administration Order)

She now has decided through talking to the National Debt Helpline that the Debt Relief Order is the more sensible way to go....

Either way, She will be now declaring her DLA payments as part of her income and we'll see how that effects the outcome...

Regardless, the advice is much appreciated

debt_doctor

In DRO's, the intermediary will put the DLA in as income and take exactly the same amount out as 'care needs' so effectively the DLA will not count within the DRO application.

DD

National_Debtline

Hi there. Not sure if it was our organisation that you spoke with, but just wanted to echo Debt Doctor's post that our intermediaries will always ensure that DLA is used for care needs unless our clients specifically state they would like to use some, or all of it, towards their debts.

Best wishes,

National Debtline.

mr2jay

National_Debtline_representative wrote: »

Hi there. Not sure if it was our organisation that you spoke with, but just wanted to echo Debt Doctor's post that our intermediaries will always ensure that DLA is used for care needs unless our clients specifically state they would like to use some, or all of it, towards their debts.

Best wishes,

National Debtline.

Yes, it was you guys she spoke to and she had nothing but praise for you.

The biggest thing she commented on? For the first time ever when speaking to an institution like yourselves, she didn't feel like she was being spoken down to and that meant a lot to her....

I posted this question as the young lady she spoke to wasn't 100% sure on the matter of DLA, she thought it wouldn't be counted as income but as a payment to cover care costs but wasn't 100% sure.

So yes, top mark for you guys