Can you cancel benefits to fit within the DRO requirements?

[Deleted User]

If I worked full time and had a salary that fit within the DRO requirements but I also received Universal Credit and LCWRA. Meaning that it put me over the £75 disposable income limit. Would I be allowed to cancel my Universal Credit even though i was entitled to some benefits ? Would this be seen as fraudulent behaviour to purposefully dictate your income and expenses to fit within the perimeters of a DRO so that debts are written off in 12 months ?

For the last three years I’ve been working oblivious to the fact I would have fit the requirements for a DRO. I lost my job for a couple of reasons and have since worked on every area of my life that needed work. I’ve started therapy for my mental health, I’m back in the gym, I got sober and I’m addressing £20k of debt. 

Because I’ve been off work since becoming unemployed I handed in a sick note and I had to do a WCA which I’m waiting for the outcome of. If I am entitled to LCWRA I’m aware of the taper rate and extra monthly payment. I don’t enjoy being off work and I have been searching for a new job that I could manage. So if I’m back in work and hypothetically speaking do get the UC and LCWRA on top of my salary I wouldn’t qualify for a DRO.

A goal of mine in the future is to get a mortgage. After a lot of digging around the advice seems to be that if you can get a DRO over a DMP do so because often times you can get on the property ladder sooner with the DRO option. I’m aware it would’t be soon and I’m happy with like a six year wait to build up a deposit but being 28 I struggle with the idea of having to wait 10 plus years to get on the property ladder.

So would I be doing something wrong by cancelling my benefits so that I fit within the DRO requirements ?

fatbelly

There was a similar question to this yesterday. I'll link to it in a minute.

If you are on UC it is unlikely you will breach the £75 limit. UC is not that generous.

Well i can't find that thread but I remember commenting that it was similar to this case

https://forums.moneysavingexpert.com/discussion/6531849/dro-application-what-a-shambles/p1

[Deleted User]

Thanks for the reply fatbelly. That was me yesterday but the link wasn’t working. I also receive PIP so I am exempt from the single bedroom allowance. This means I get all of my rent covered and in total I get £1016 in Universal Credit. 

If I was to get LCWRA I would be just over £1400 in benefits (that would count as income). Due to the taper rate and my UC being a bit higher even after deductions to my wage I’m seeing my income exceed my expenses by hundreds each month. Usually this would be great news for people and I like that the system isn’t as rigged as people believe it to be but it’s not all that helpful if I’m wanting a DRO.

All hypotheticals for now but I’m wanting to address this debt and get it gone once and for all. Cheers.