DRO & raise in ESA benefit

Jodytoady_2

I'm extremely worried about this and hoping for some sound advice. I started a DRO in December 2011, much to my relief.

When i started my DRO i was on JSA @ £67.5 per week. I was then signed off from working with mental health problems and am in the process of therapy.

My ESA stayed at the same amount as JSA ( £67.50 then £70 from new tax year. ) until This happened in April 2012.

After having a medical assessment with the dwp it has been decided by them that I am entitled to more benefit. I now receive £30 per week more in ESA, so thats £100 per week instead of £70. I was paid around £280 a few weeks ago in back pay.

I have around £750 social fund debt. They have told me that my benefits will be reduced to £50 per week in January 2013. I believe it is because they will make a £50 per deduction for my social fund loan

I can't bear the thought that I may have to pay all my debts back because of a change in benefits. Please has anybody got any advice on how this could effect my DRO. Also I have been only just remembered that I have inform the insolvency service / official receiver of this change. So am worried because I have not told them strait away.

debt_doctor

Hi,

I view the support component of ESA rather like DLA or disability premiums within JSA or Income Support, as monies given for support / care needs, in your case to assist you with your mental health issues.

What my view would be is that this is disregarded income or cancelled out by the needs it is meant to pay for.

I think this is the view you should put to the Insolvency Service, and you should discuss with your intermediary as soon as possible.

Shouldnt your social fund loans have been part of your DRO application, or have they been taken out recently?

DD

Jodytoady_2

Yes some social fund loans have been taken out recently as they were taken out after my dro was put in place. The others were taken out before my dro was put in place and are being put on hold until after my momentorium period.

I'm just more worried about the dro being cancelled because of a rise in benefits and the recent back pay of approximately £280. Thanks for your advice. I do feel a little less worried but will contact my intermediary next week and let them know what is happening. I suppose the worse case scenario is that I will have to petition for bankruptcy instead, if this situation lifts the dro.

rossireps

sounds like the op is recieving the disability premium,i think its £28 ish a week?
as for the comment about paying debts back. iam sure everyone would pay them back if they could. sadly many cant for various reasons.
best of luck jodytoady

Jodytoady_2

rossireps wrote: »

sounds like the op is recieving the disability premium,i think its £28 ish a week?
as for the comment about paying debts back. iam sure everyone would pay them back if they could. sadly many cant for various reasons.
best of luck jodytoady

I am actually receiving the work related activity component of ESA. If you have any advice about how this could effect my DRO. I would love to hear it thanks for your help.

[Deleted User]

Unfortunate that "Jodytoady" thought that "coinxoperated" was addressing her when he quoted and replied to an entirely different poster. This is especially true because "coinxoperated" was actually taking "Jodytoady's" side, albeit in a very forthright manner.

I think users need to tread carefully on this particular forum, as judgemental posts and overly sensitive posters are never a good mix.

Jodytoady_2

Moneyineptitude wrote: »

Unfortunate that "Jodytoady" thought that "coinxoperated" was addressing her when he quoted and replied to an entirely different poster. This is especially true because "coinxoperated" was actually taking "Jodytoady's" side, albeit in a very forthright manner.

I think users need to tread carefully on this particular forum, as judgemental posts and overly sensitive posters are never a good mix.

Thanks for putting me right. Sorry for the trouble.

[Deleted User]

[QUOTE=coinxoperated;_Its_not_about_not_wanting_to_pay_them_back,_but_its_about_not_being_able_too._Nobody_can_predict_the_future,_and_sometimes_people_get_into_situations_they_are_unable_to_avoid._I_would_like_to_see_you_struggle_like_some_of_us_have_had_too_and_tell_me_you'll_abide_by_every_rule/contract_etc_your_given._If_your_outgoings_are_hundreds_of_pounds_more_than_you_earn,_it_IS_the_only_option_sometimes._thinking_that_by_not_paying_debts_back,_we_get_it_easy._We_don't!!!![/QUOTE]


To, to true - anyone can have a reversal of fortune, no one is exempt
We face up and pay the consequences - do the statute barred or oh it's irresponsible lending brigade? or those that get their debts so far discounted it is unreal - perhaps it those creditors that are partly to blame, after all they expect someone else to fork up most times no doubt, and who was that in the first place?

When someone says but you don't have to get up and out of bed for NMW or a debt charity will take over in flash - I like to remind them of my 'options' :sad: of course I wouldn't wish this on my worst enermy

coinxoperated

No problem jodytoady. I did read your first part and thought I had made some serious grammatical errors that led to the mis-understanding don't worry!

Why someone who is obviously so very financially secure is even posting on DRO bad bankruptcy boards is beyond me!

DRO's are far from a 'easy option' out, but it will help the future economy in the end. I know that by not doing a DRO I would be looking at struggling / paying debts back for the neck 5 - 10 years and be unable to buy a house or start rebuilding my life. I am 22, which is a you g age to do a DRO, but coming from a FINANCIAL SERVICES background which was money money money and then the recession unexpectedly, I ended up in around £14,000 worth of debt. It was never intentional, but I'm not prepared to struggle for the best years of my life to pay mainly interest in debts that will stop me enjoying my life.

Yes, should of known better. Yes, should pay them off. But Can't is the word I can use.

I struggled for two years trying to keep on top of payments. I have no family, nobody who I could borrow money from and pay back within a reasonable amount of time, nothing to sell, no assets. Worked 4 jobs and STILL had zilch each month.

Times have changed. The DRO was the best thing I've ever done, and feel like I can finally breathe a little clearer. I am also able to focus more on getting qualifications to eventually earn more money, gave up two of my jobs as I was not getting any sleep (earl shifts, day shifts, night shifts, part time). Im healthier, studying, working full time, and will be looking at a payrise within the next two years of a substantial amount.

Without doing the DRO I would still be sat in the same worn down position for the foreseeable future.

To those who don't know what it's like to have £3 left for food for a month, the electric off, no heating incase the bills are too high, health problems you can't afford a £7 prescription for, then don't judge others.

debt_doctor

Ok,

So you get the work related component which is paid for "for support to your illness or disability that severely affects your abbility to work" as per here;

http://www.direct.gov.uk/en/MoneyTaxAndBenefits/BenefitsTaxCreditsAndOtherSupport/Illorinjured/DG_171894

So the increased income should be considered and then offset in the essential expenses category as Care needs supporting my illness that severerly affects my ability to work.

So no increase in disposable income.

I would be happy to defend that in any DRO that I had submitted.

DD

rossireps

Jodytoady wrote: »

I am actually receiving the work related activity component of ESA. If you have any advice about how this could effect my DRO. I would love to hear it thanks for your help.

sorry jt i dont
i get is and disability premium but i went bankrupt.
please let us know what happens and have a hug x