Ask a StepChange (formerly CCCS) counsellor a bankruptcy question

StepChange_James

dizzybee wrote: »

hi,
need some advice please i am currently on a DRO but am having major problems with the DWP, they contacted my employer to do a attachment of earnings just after the DRO was granted this was canceled after i and the insolvency service contacted them, on fri i received my pay slip and noticed a attachment of earnings contacted my employer today to be told its DWP,spoke to DWP and they say they know nothing about it until i explained i had contacted my employer,is there any way to get them from keep doing this.feel like i'm banging me head against a brick wall.

Hi Dizzybee,

I would expect benefit overpayments to be included in a DRO (assuming this is what the DWP are collecting). If you included this debt in your DRO application then I'd recommend talking to your official recevier and explaining the situation.

If this debt wasn't mentioned in your DRO application then it won't be possible to add it in retrospectively. In this case it would probably best to try and track down the people who applied the attachment of earnings and discuss things with them.

I've done a quick Google search and haven't been able to find a contact number for you to call but did find the number for employers to call:

If you need more information about, or help to operate a Direct Earnings Attachment, please ring our dedicated employer helpline on 0345 600 0685. The employer helpline will be open from 9.00 am to 5.00 pm Monday to Friday.

This was towards the back of this pdf document: https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/337871/dea-guide-for-employers.pdf.

While it's the employers contact, I suspect they'll know who you need to speak to.

Kind regarrds

James

dizzybee

StepChange_James wrote: »

Hi Dizzybee,

I would expect benefit overpayments to be included in a DRO (assuming this is what the DWP are collecting). If you included this debt in your DRO application then I'd recommend talking to your official recevier and explaining the situation.

If this debt wasn't mentioned in your DRO application then it won't be possible to add it in retrospectively. In this case it would probably best to try and track down the people who applied the attachment of earnings and discuss things with them.

I've done a quick Google search and haven't been able to find a contact number for you to call but did find the number for employers to call:



This was towards the back of this pdf document: https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/337871/dea-guide-for-employers.pdf.

While it's the employers contact, I suspect they'll know who you need to speak to.

Kind regarrds

James

thank you yes its included in my DRO,i have contacted the official recevier on many occasions and they keep contacting the DWP and they stop taking payments for a few months then start again.

Purple-3

Hi,

I am no longer able to work due to long term serious health issues, and have been advised by StepChange in a phone interview to apply for bankruptcy, which I am doing. I just thought of something though.

My current DLA is being reassessed due to additional illness developing. If my DLA rate is increased during the period I am bankrupt, will that extra monthly allowance be taken from me to pay creditors?

I am hoping that, because it is an allowance and not an income, that they won't be able to do this, as I will need the higher rate to pay for much-needed care and services.

Many thanks!

tigerfeet2006

The OR cannot take any benefit monies at all.

TimDenley

Hi ,

I am in the process of declaring myself bankrupt and have just been told by my grandmother that when my grandad died a few years ago he left me a share of the house in his will but nothing can happen with it until my grandmother dies as she has the same will for her half of the house. So if she dies after I'm bankrupt I will be receiving some money but as long as she is alive and well (which she is in great health) I have nothing. Do I need to inform the OR or add it too my forms??

Many thanks

Tim

Former_StepChange_Rory

TimDenley wrote: »

Hi ,

I am in the process of declaring myself bankrupt and have just been told by my grandmother that when my grandad died a few years ago he left me a share of the house in his will but nothing can happen with it until my grandmother dies as she has the same will for her half of the house. So if she dies after I'm bankrupt I will be receiving some money but as long as she is alive and well (which she is in great health) I have nothing. Do I need to inform the OR or add it too my forms??

Many thanks

Tim

Hi Tim,

Thanks for posting.

It's important that you make sure that you include any assets you have or that are due to you on the bankruptcy forms.

You should include this under the assets section on the statement of affairs form, where there’s space for any ‘property or sums due to you under a will’, so you should always put any information about this here.

If you’d like to explain the situation a little bit more you can always use the space under section 13.

If you'd like more advice on what to do, we'd suggest speaking to the Insolvency Service by visiting https://www.gov.uk/the-insolvency-service and they should be able to provide you more help and advice with this.

I hope this helps,

Rory

Former_StepChange_Rory

Purple-3 wrote: »

Hi,

I am no longer able to work due to long term serious health issues, and have been advised by StepChange in a phone interview to apply for bankruptcy, which I am doing. I just thought of something though.

My current DLA is being reassessed due to additional illness developing. If my DLA rate is increased during the period I am bankrupt, will that extra monthly allowance be taken from me to pay creditors?

I am hoping that, because it is an allowance and not an income, that they won't be able to do this, as I will need the higher rate to pay for much-needed care and services.

Many thanks!

Hi there,

Disability Living Allowance (DLA) shouldn't be taken from you to pay your creditors, but you must still declare this as an income on the bankruptcy forms.

If your circumstances change during your bankruptcy, you should let your official receiver (OR) know so that they are aware of the change in circumstances.

I hope this helps,

Rory

Blushing_Money_Spender

Hi,

I have approxiamtely £31,000 of debt which is spread over a Personal Loan (£12,000) with the remainder being spread over Credit Cards. I have been very careful with money in the past but since my Father passed away a number of years ago I was spending more than I was bringing. I currently £34,000 PA and I am currently on a Debt Management Plan through StepChange but am finding it increasingly difficult to keep up with my payments as my work sometimes means I have other expenses that are not always necessary on a month by month basis whereas my initial calculations only included my month by month certain transport payments. I am now finding myself doing overtime on a frequent basis in order to make ends meet and the stress has again become unbearable. I really don't know what to do anymore am literally at my wits end particularly as I am only 5 months into the DMP and this is due to go on for the next 10 years. Please help....

StepChange_James

Blushing_Money_Spender wrote: »

Hi,

I have approxiamtely £31,000 of debt which is spread over a Personal Loan (£12,000) with the remainder being spread over Credit Cards. I have been very careful with money in the past but since my Father passed away a number of years ago I was spending more than I was bringing. I currently £34,000 PA and I am currently on a Debt Management Plan through StepChange but am finding it increasingly difficult to keep up with my payments as my work sometimes means I have other expenses that are not always necessary on a month by month basis whereas my initial calculations only included my month by month certain transport payments. I am now finding myself doing overtime on a frequent basis in order to make ends meet and the stress has again become unbearable. I really don't know what to do anymore am literally at my wits end particularly as I am only 5 months into the DMP and this is due to go on for the next 10 years. Please help....

Hi there,

Thanks for posting. It's clear that this is causing you a lot of stress, so you're completely right to be looking into other options.

I'd recommend giving us a call and asking for a review of your budget. We do cover the standard monthly costs in the budgets but we can also account for less regular costs by averaging them out over the months.

So hopefully we can review your budget and get it to more accurately reflect your actual situation. Then we can look at your options.

Obviously I don't know your full situation but if your DMP is estimated to take 10 years then it's likely there are other debt solutions you could consider as alternatives. Our advisors will be able to talk you through the pros and cons of these other solutions.

My personal opinion is that a DMP is only worth doing if it makes dealing with your debts manageable and you've got a plan to clear the debts in a reasonable amount of time. If that's not happening at the moment then it's definitely worth taking another look at your options.

I hope this helps.

James

Blushing_Money_Spender

Hi James,

Thank you for your feedback. I iwll be in contact with StepChange first this Monday morning. Really appreciate you taking the time out to respond.

Regards,