DLA and Bankruptcy????

Chubacca

It has been mentioned to me on the DFW board that someone at the CAB advised someone that if they go bankrupt then they would lose their DLA for GOOD :eek:

Surely bankruptcy has no effect on a person's disabilities? What reasons would they have for taking a disabled persons DLA away???

Help, I am now so worried!

wok_boy

I would speak to the benefits agency.

fermi

Chubacca wrote: »

It has been mentioned to me on the DFW board that someone at the CAB advised someone that if they go bankrupt then they would lose their DLA for GOOD :eek:

Absolute twaddle. :mad:

Sorry to be blunt, but there you go.

wok_boy

fermi wrote: »

Absolute twaddle. :mad:

Sorry to be blunt, but there you go.

Hmm maybe mayfield needs to go back to CAB and ask them to actually confirm that:

http://forums.moneysavingexpert.com/showpost.html?p=6512856&postcount=12

Toto

It's untrue, you will not lose any benefit at all because of Banruptcy, and as our friend Fermi taught me last week, the OR will not impose an IPA if your sole personal income is made up from benefits.

philnicandamy

Chubacca loosing your DLA due to BR is TOTAL RUBBISH, i've been on DLA for many years due to various disabilities, I became BR back in Jan this year put down DLA as my only source of income on all relevent paperwork, the OR didn't impose an IPA or take anything away from me as my only source of income was benefits, the benefits agency are well aware of my BR & are not taking anything away (I informed them the OR was closing my bank account & gave them my new co-op account details for payments to go into) & I also still have a motability vehicle (again the OR not interested!) and mobility are also aware i'm BR

so rest assured you'll be safe nothing will be touched in the way of benefits you receive...try not to worry & hope this helps in someway

Please PM me should you need any more advice

Phil

gratton20

Like everyone else says this is total twaddle! I have been on DLA for 15 years and still get it. I think someone is taking the p or badly informed!:rolleyes:

What might have been intended was to say that DLA cannot be counted as income when making an assesment of income for IPA/IPO - you are entitled to deduct the same amount straight away as essential care expenses. Also the same applies if you were looking at getting a debt management plan.

Hope this has reassured you

Chubacca

Hi everyone, a HUGE thankyou for putting my mind at rest!

Gratton, yesterday the guy at the CCCS DID count my DLA as income when working out a possible debt management plan - should he not have counted it?

sarahlouise210

I dont think it should have been counted..if only for the reason that it can be taken away

philnicandamy

as far as I was aware benefits should not be taken into consideration..they were not when I had a CAB consultation

gratton20

Chubacca wrote: »

Hi everyone, a HUGE thankyou for putting my mind at rest!

Gratton, yesterday the guy at the CCCS DID count my DLA as income when working out a possible debt management plan - should he not have counted it?

I never dealt with CCCS I went with National Debtline and CAB and BOTH told me that DLA is not counted as income when working out a budget to show creditors for DMP or indeed BR.

I was told, because at first I was considering a DMP like yourself, that I must add the DLA as income, marking it clearly as DLA, - then in the expenditure section put "Care Needs" and the same amount of the DLA - in effect cancelling the DLA straight out again.

Another problem with DMP is although they say you have £200 a month to spare now, your needs may change sooner or later and you could easily NOT have that much spare and need to alter the payments - that happens a lot - chances are the creditors would go mad about it and not accept it, or at least some of them not accept it - remember DMP is not legally binding on creditors! You would be back to square one

I think DMP or IVA is only a good idea if you have lots and I mean LOTS of spare income, LOTS of capital and property etc. For people like you and me on benefits alone and with little prospect of change its a no no.