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Child Benefit and DRO's.
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debt_doctor
Posts: 4,595 Forumite


in IVA & DRO
Hi all,
Well.... did you know that Child Benefit does not count as income for the purposes of a DRO?
No?, me neither, but that is what it says in the latest DRO newsletter issued to Intermediaries from the Insolvency Service / DRO Unit.
Up until about 6/ 7 years ago this was correct in IPA 's in bankruptcy but then the policy was changed.
Anyway, a bit of good news.......
DD
Well.... did you know that Child Benefit does not count as income for the purposes of a DRO?
No?, me neither, but that is what it says in the latest DRO newsletter issued to Intermediaries from the Insolvency Service / DRO Unit.
Up until about 6/ 7 years ago this was correct in IPA 's in bankruptcy but then the policy was changed.
Anyway, a bit of good news.......
DD
Debt Doctor, Debt caseworker, Citizens' Advice Bureau .
Impartial debt advice services: Citizens Advice Bureau Find your local CAB *** National Debtline - Tel: 0808 808 4000*** BSC No. 100 ***
Impartial debt advice services: Citizens Advice Bureau Find your local CAB *** National Debtline - Tel: 0808 808 4000*** BSC No. 100 ***
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Comments
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Wow
I read the newsletter (or thought I did) and completely missed that:Child benefit - Child benefit is disregarded as income, as the payments are ascribed to the child and not to the debtor, so please do not add it to the total income.
I've been doing it wrong for 6 years!0 -
Wow
I read the newsletter (or thought I did) and completely missed that:
I've been doing it wrong for 6 years!
DDDebt Doctor, Debt caseworker, Citizens' Advice Bureau .
Impartial debt advice services: Citizens Advice Bureau Find your local CAB *** National Debtline - Tel: 0808 808 4000*** BSC No. 100 ***0 -
From the DRO Unit:A recent item in the DRO newsletter regarding Child Benefit has generated several enquiries and, in order to fully clarify the position, it should be noted that applications for a DRO should not include in the statement of the debtor’s income any reference to child benefit. It has been decided not to make an offsetting adjustment to household expenditure, as this might involve various complications relating to a spouse’s entitlements, and it would be difficult to separate out actual expenditure on a child/children with any great accuracy. Further, it is considered that this uneven accounting will not amount to much in the vast majority of cases.
That clears that up, then...0 -
The guidance issued has unfortunately confused matters for advisors and therefore in order to avoid any further confusion the latest guidance is being withdrawn and approved intermediaries are asked to revert to their existing practice of scheduling child benefit in the list of income, and child related expenses will be scheduled as normal in the list of outgoings.
Aah, that's better!0 -
See,
I told you that they made it up as they went along..............
DDDebt Doctor, Debt caseworker, Citizens' Advice Bureau .
Impartial debt advice services: Citizens Advice Bureau Find your local CAB *** National Debtline - Tel: 0808 808 4000*** BSC No. 100 ***0 -
Just doing my Soa for a possible DRO. Does this mean when calculating my income I don't add the child benefit income?
Thanks in advance0
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