dro moratorium

Bridges80

I'm currently on the dro moratorium period which ends Nov 2014. I'm on ESA and my benefits increased by £22 each month on the 22nd July however this extra money I give to my mother for lodging because I didn't think I was paying her enough before.

Should I tell the Insolvency service about this extra income and where it goes?

Would they find out if I didn't tell them?

thanks

UpToMyNeckInIt

I wouldn't worry about it. If you are on ESA, it is automatically assumed that you have less than £50pcm disposable income. What you do with it is irrelevant.

fatbelly

If your declared surplus was under £28 then you would still be under the £50 limit.

This shouldn't cause a problem. You could ask your intermediary for their view.

Why did your ESA increase by such a small amount on 22 July?

wba31

UpToMyNeckInIt wrote: »

I wouldn't worry about it. If you are on ESA, it is automatically assumed that you have less than £50pcm disposable income. What you do with it is irrelevant.

I think the opposite of this, i think you ought to inform the IS, of the income change and how these extra few £££ are being used, but I cannot see it causing any problems for you.

Bridges80

Well my declared surplus was £35 so this would put me just over the £50 limit at £57 pcm, thats £5.50 extra a week but I do give this to my mother for board.

I'm just worried that they'll revoke my DRO and make me pay the debts which I definitely can't afford.

wba31

Bridges80 wrote: »

Well my declared surplus was £35 so this would put me just over the £50 limit at £57 pcm, thats £5.50 extra a week but I do give this to my mother for board.

I'm just worried that they'll revoke my DRO and make me pay the debts which I definitely can't afford.

I would speak to your intermediary tomorrow.

You are obliged to inform the DRO unit of any improvements, but you can speak to your intermediary first. Has anything changed for you that has possibly changed your expenditure?

This is an example of assuming that some people on ESA have a surplus of less than £50. Most debt advisors will find a cost for all that benefit, but sometimes £35 is left as a surplus suggesting that sum of money is not needed each month...

longtermplanner

You should probably tell your intermediary, but in practice no one who lives solely on benefits will fail the £50 income test as the Common Financial Statement guidelines are used and these will not give any surplus income. The CFS figures were update in April 2014, so although your income has risen, the amount you are allowed to spend will have increased to.

Bridges80

Thanks guys. I've just contacted my intermediary and they told me not to worry about it cos I'm on ESA.

wba31

Bridges80 wrote: »

Thanks guys. I've just contacted my intermediary and they told me not to worry about it cos I'm on ESA.

Pleased to have read this update this morning!

National_Debtline

Bridges80 wrote: »

Thanks guys. I've just contacted my intermediary and they told me not to worry about it cos I'm on ESA.

Hello there,

We would generally advise the clients we have on DROs to inform the DRO unit at the Insolvency Service. In reality it's very unlikely that it will cause you any problems as it's perfectly reasonable (and understandable) that you would wish to use the extra money to pay a more reasonable amount in board.

Very best wishes,

David @ National Debtline.