Hi, I am in an iva with my partner, I recieve disabled allowance. Before we started our iva in October, I had made a claim for a new disabled allowance, the claim has taken ages to go through and if I do get eligible for it, it will be back dated payments from when I first claimed in April.
Now I am still waiting for a final decision from the disabled allowance so have not spoken to our ip yet until i here.
IF I am eligible and get the back dated payments that would be before we started our iva, would I have to give any of the money to our iva?
And also would our payments be increased even though this extra disabled allowance is because of my disability?
Faith isn't something you find, it's something you have
I believe you would have to sacrifice this to the IVA even though it was from before your IVA started, moving forward, I believe DLA is included as income but if you have any new expenses relating to your disability, these could be offset against it
I agree, I think you may well have to pay this across but only your IP can help you there. Will you be using this money for any specialist equipment for your disability? If so then you can argue your case to keep it.
Your payments may well increase but, as Lem says, if you have extra expense then you may be able to keep it.
If it is something like higher rate mobility allowance then you could use it to get a car.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
I take a different view to my colleagues here, I believe that you would not have to pay a penny extra. If the disability existed before the IVA was approved, which by the sounds of it is true, then any backdated money is owed to you for the disability and cannot be claimed for the creditors. Similarly, DLA is not counted as income for the purposes of IVA and is there to help ease the burden of whatever the medical condition is and is strictly NOT to be used to pay debt with, and so therefore again is exempt from calculation purposes of Disposable Income available to creditors via your IVA payment, irrespective of how little or how large the DLA payment to you is.
Hope that helps.
Regards.
Cert DR
23+ years in debt advice
I do not post for anyone other than myself
That's a new one on me size 5! Most posters here have had DLA taken into account then if appropriate some or all offset due to additional costs because of the disability.
My mobility allowance is shown on my income and expenditure and then offset for my motability car.
Last edited by kazzafunk on Fri Nov 11, 2011 9:01 am, edited 1 time in total.
My hubby is on incapacity benefit at the moment and this has always counted as income for him. I presume that would be different to DLA?
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
I disagree with your view of the treatment of DLA. It is likely that any expenses, including those incurred due to any disability will be included as expenses in the IVA so it would be natural to include any income reiceved in the form of benefits. Usually the DLA wouldnt cover all of the expenses that are incurred due to a disabilkity so it would be better to include these expenses on the I&E.
Sponge05 was probably forced to use credit to subsudise living expenses whilst the DLA was going through. These debts are included in the arrangement so any back dated lump sum received is in effect additional income and should come into the arrangement. As previous posters have mentioned, if there are any additional expenses or equipment that is required the IP should be able to offset these costs against the lump sum.
Re-reading the post I may not have been as clear as I wanted to be. It IS counted as income, but is offset IN ITS ENTIRETY, certainly here at least, to cover the cost of the medical condition, therefore for all intents and purposes not existing at all, i.e. in and straight out again. Accordingly, any increase in income due to DLA being awarded will effectively not be counted.
I have to disagree re the backdated lump sum. A tax rebate or something of similar ilk would certainly have to come in as that was income that was should have been available for the payment of debts, by the same logic DLA would never be available, or shouldn't be, for the repayment of debts. I can see the logic though of, in effect, ring fencing it by covering capital purchases with it etc.
As for Jans question, yes Incapacity Benefit, or ESA as I think it is now called, is viewd in a different light.
Regards.
Last edited by size5 on Fri Nov 11, 2011 10:51 am, edited 1 time in total.
Cert DR
23+ years in debt advice
I do not post for anyone other than myself
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
I see your point that any benefit received should have a corresponding expense but if it is a back dated lump sum what is it offset against as the expense has already been incurred and paid (probably using credit) before the arrangement commenced.
Hi
I was just about to jump on Mikes post until he clarified his position.
Yes I agree that all income should be listed and then expenditure listed to offset, although it may not offset all of the benefit. As with a back dated lump sum I feel that it should be seen as a windfall and paid into the IVA
Thank you all for your replies.
I am so confused!! This extra disabled benefit is an addition to what I already get from dla, my concern is that if I had been awarded this extra part of dla when I applied for it, then there would be no back dated sum due, it is only to dla waiting and having a back log of claims that is taking so long to get answer. And as I applied for the extra part of dla 7 months before our iva started surely this should be considered? I would hardly class any back dated disabled allowance a 'windfall' .
The extra disabled allowance is to enable me to be more mobile, I would have the choice of having a car or having the extra money for higher rate mobility part of my dla. If I am awarded it, as I am still waiting for a decsion from dla!
Faith isn't something you find, it's something you have
It is very confusing, I think you need to speak to your prospective IP about this to see what their take is on the backdated award.
If you do decide to go for the car then the weekly payment won't be considered towards your IVA.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
As Jan says best to discuss with your IP. As you can see above, different companies treat things different ways.
If you do get higher rate mobility rate it is a great scheme to get a car (if you don't mind not owning your own!). I have a peugeot and the scheme covers everything (including tyres now).
I would add a slight word of caution though, the benefit is likely to change in 2013 to Personal Independence Payment (PIP). So if awarded now, be aware that your DLA is likely to be reviewed sometime after April 2013. That may mean a dreaded trip to ATOS for a medical. I'm here if anyone has any queries about ATOS - they are atrocious and I have had to see them 4 times this year due to ill health at work.
Motability cars are great - new car every three years and all you have to do is put fuel in.
I presume then kazza, that anyone claiming higher rate mobility will have to do a medical after 2013?
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
