working and benefits in bankruptcy

depression

I’m getting help from an advice agency on my income and my expenses for my bankruptcy. I do work but get benefits as well. The agency says the benefits do not “count” as my income. Any any payments I have to make into my bankruptcy will not have to come frome the benefits.
The problem is the advice people are not sure which benefits are seen to be benefits in bankruptcy Could anyone provide a list of benefits that are excluded from your income. Thank you

freddy911

While technically it is true the receiver cannot take your benefits they do count to your total income and if you are earning they can take all your surplus even if part of it is made up of benefits. But they could not take more than your income from employment. For example if you have a salary of £1200 per month and £300 benefits and your montly expenditure is £1000 a month you would have to pay a IPA of £500 per month. Regardles of the fact that £300 of that surplus is due to benefits.

freddy911

What the agency is telling you is factually incorrect are you paying this agency? have you tried one fo the free charities? CCCS for example?

PippaGirl_2

OP, are you BR already or preparing for it? If already, what has the OR said wrt an IPA?

HappyMJ

depression wrote: »

I’m getting help from an advice agency on my income and my expenses for my bankruptcy. I do work but get benefits as well. The agency says the benefits do not “count” as my income. Any any payments I have to make into my bankruptcy will not have to come frome the benefits.
The problem is the advice people are not sure which benefits are seen to be benefits in bankruptcy Could anyone provide a list of benefits that are excluded from your income. Thank you

Similar to the above advice they will take the excess from income but it won't exceed the level of income you get.

If you get "means-tested" benefits you need to increase the SOA figures so that you do not have a surplus.

depression

Thanks for your help.I am getting advice from a debt help charity.Again could you tell me the list of benefits that are I am not sure how to say it but the benefits that count as benefits in bankruptcy.

depression

freddy911 wrote: »

While technically it is true the receiver cannot take your benefits they do count to your total income and if you are earning they can take all your surplus even if part of it is made up of benefits. But they could not take more than your income from employment. For example if you have a salary of £1200 per month and £300 benefits and your montly expenditure is £1000 a month you would have to pay a IPA of £500 per month. Regardles of the fact that £300 of that surplus is due to benefits.

Thank you freddy. I seethat they can take an IPA from my income and benefits which i can understandThe bit i don't quite understand is - they could not take more from your income from employment - could you try and explain that bit to me.

freddy911

yes its simple lets say your benefits are £600 and you earn £400 a month but your expenses are £500 per month. Even though you have a £500 a month surplus the most they can take is the £400 from employment, the least they can leave you with is the amount thats from your benefits, even if you still have a surplus from benefits alone.

depression

Thanks again.In my case with my income and benefitsand taking away my expensesit will leave a surplus.So am I right in saying this is what i will pay. I don't mind i just need someone to say that is the case.Again thank you

freddy911

Yes but post up your SOA there may be things you forgot to include.

http://www.makesenseofcards.com/soacalc.html

depression

again thank you.the advice agency told me that my wives contribution to my living expenses is counted as income on my forms againI don't mind if it is but can you tell me if it is the case.