PIP Is it classed as income

desktopfury

Hi
Can anyone tell me if PIP is classed as income for debt?
does it need to be included on an income and expenditure form from Capquest
and is it necessary to include your spouse/partner's income if the debt was purely your own?
Thank You

Willing2Learn

PIP is not counted as taxable income.  The money is for you to spend, due to your health-related expenses.  I would not include it as income for your Capquest I&E form.

desktopfury

Willing2Learn said:

PIP is not counted as taxable income.  The money is for you to spend, due to your health-related expenses.  I would not include it as income for your Capquest I&E form.

Thank you Willing to learn, 
do you know the answer to the last question?  is it necessary to include your spouse/partner's income if the debt was purely your own?
Thank You

Willing2Learn

That all depends on how you share out your income and expenses with your partner.

If you post up a completed Statement of Affairs (SOA) into this thread, then we can advise you on how you should present the figures to your creditor(s).

https://www.lemonfool.co.uk/financecalculators/soa.php

desktopfury

Thanks, I will do that tomorrow

desktopfury

Willing2Learn said:

PIP is not counted as taxable income.  The money is for you to spend, due to your health-related expenses.  I would not include it as income for your Capquest I&E form.

National Debt Line have told me that I should include PIP?

Willing2Learn

It does not count as income for the purposes of the allocation of your income toward debt repayments.  You do, however, include PIP in your SOA...

If you complete the SOA, then we can take it from there... 

desktopfury

Thanks Willing2Learn, sorry I did not get back but was ill over all this. I had previously looked at the national debt  website and their budgeting tool lists different stuff to what the lemonfool site does, what I don't want to do is to give a list to capquest where it shows I can just afford to pay my debts and a bit to them until my situation changes ie I want to pay MY debts as I am doing without any default, like paying the just above the minimum each month and upping the capquest debt from 10 a month to about 30 or 40 a month, I have 50k life insurance ( so does my wife) and I don't want them to make me stop that to pay them more, as if I died they would get the full amount back anyway, does that make any sense to you? Sorry but my meds don't make things any clearer, I am going to stop taking them for 2 days to try and get a clearer head on this.

desktopfury

I dont have 30 or 40 a month to do that , but by juggling things around could just about do that, my intention is (at 68) is to find out how to do affiliate marketing online, then I can pay everyone the right amount or even clear them all.

Galloglass

Debt Camel has a useful article on the subject and explains your choice to show/no show PIP as income.

There are two alternative ways – they both give the same end result. Whichever you choose, you will need to inform your creditors what you are doing and why.

https://debtcamel.co.uk/should-i-include-dla-money-in-my-incomeexpenditure-sheet/

Also read the section on "I would like to use some of the money to speed up my DMP"

sourcrates

Just to add to the above, Capquest are just a debt purchasing company, you are under no obligation to share your private financial matters with anyone, least of all a debt collector, your budget is your budget, no one else can dictate to you how you spend your money, or what it can be used for.

It only becomes an issue if you are in a regulated debt solution such as an IVA/DRO/ or you go bankrupt, for the purposes of debt management, you tell them what payment they will be getting, not the other way around.

National Debtline/stepchange etc, are very good at what they do, but they tend to offer a more concilitory approach when dealing with creditors, i prefer a more robust stand to be taken, this then avoids questions like this from popping up, benefits such as pip are there for a reason, and that reason is not debt repayment.