benefits and bankruptcy

seana

hi
i am a fulltime carer for my disabled daughter and on income support my wife works part time do they take my daughters dla and child tax credits as income and would we have to pay anything from my wifes earnings .we are both going bankrupt

stephane_2

Sorry.....??!?

MikeJO

Pretty sure the answer is no....if you're on benefits you won't get an IPA and your wife's part time earnings will be taken into account when setting your level of Income Support, so that effectively you're on "benefit only" income (no expert, just thought I'd try a slightly more constructive answer than the first one you got:think:).

Certainly when I went BR I was on Carer's allowance and IS, my wife on DLA and we got tax credits for our son and we paid nothing.

debt_doctor

I agree with everything MikeJO said, but considering my last fight with the Insolvency Service was one where they were trying to obtain an IPA from someone in receipt of Income based JSA, then nothing would surprise me!

EDIT; I won, by the way!:D

DD

seana

hi
at the moment the wife and i are in a iva.i have been in it just over 2 yrs and the wife 8mths.we pay £280 per mth into it and find it very hard as all are income is benefits would it be better going bankrupt

rossireps

depends if you have any assetts? or how it would effect you.
i was on income support and had no assetts so was the best thing for me.

MikeJO

seana wrote: »

hi
at the moment the wife and i are in a iva.i have been in it just over 2 yrs and the wife 8mths.we pay £280 per mth into it and find it very hard as all are income is benefits would it be better going bankrupt

I was told pre BR that I didn't quality for an IVA because all my income was from benefits.

As ever the advice is to get the proper advice from one of the free sources and if they think BR is the way to go then you'll get endless help here.

I can't for the life of me see how you manage to pay out £280pm from benefits though....so on the face of it BR would seem to be a good option.

This post should be your first port of call....

http://forums.moneysavingexpert.com/showpost.php?p=58875239&postcount=3

seana

hi
my benefits consist of
income suport
child tax credits
dla
child benefit
housing benefit
council tax benefit

after the i&e they came to the conclusion i could pay £280 a mth.
when we started the iva we had a house now that as gone we have no assets and are finding it very hard so thought br would be best.

not very good at posting messages

Depth_Charge

seana wrote: »

hi
my benefits consist of
income suport
child tax credits
dla
child benefit
housing benefit
council tax benefit

after the i&e they came to the conclusion i could pay £280 a mth.
when we started the iva we had a house now that as gone we have no assets and are finding it very hard so thought br would be best.

not very good at posting messages

Hi

Were you fully advised on bankruptcy and other options at the outset?

What happened with the house?

Is this an interlocking IVA taking into account that you say that you have been in it 2yrs and your wife for 8 months.

Just a thought from what you have put and I hope you dont mind me asking but is this an IVA or could it be a DMP?

Could you put up the income & expenditure calculation used in your IVA?

Another question - will you be affected by any of the forthcoming benefit changes such as council tax as these may reduce your income in the coming months.

Depth_Charge

debt_doctor wrote: »

I agree with everything MikeJO said, but considering my last fight with the Insolvency Service was one where they were trying to obtain an IPA from someone in receipt of Income based JSA, then nothing would surprise me!

EDIT; I won, by the way!:D

DD

Hi

Good stuff debt doctor:)

seana

hi
can't remmember if i was fully advised at the time my head was in bits.
our house could not be adapted for our daughter so on medical grounds had to move into local housing which was all adapted with hoists,through floor lift etc.so when moved could only claim benefit for one house which was the adapted one and put ours up for sale.up for sale for about 12 mths but no joy so had to do a voluntery repo.there was a shortfall of £28000 thats when my wife started the iva. dont think its interlocking but they used the same i&e
on the benefits we my have to start paying the spare room tax £12 per week