Lump sum payments

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phoenix121976

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Post by phoenix121976 » Mon Mar 02, 2015 5:32 pm
Hello,

My husband has been awarded PIP and as such we have received a back payment of housing benefit of £2k for last year as they under paid us. Do i have to inform IVA of this payment and if so how much are they likely to want of it?

Also do i need to inform them my husband is now in receipt of PIP. He is not named on my IVA as we had no joint debts.

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Foggy

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Post by Foggy » Mon Mar 02, 2015 5:53 pm
The back payment will need to be declared and some or all of it will be drawn into the IVA.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
 
 

phoenix121976

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Post by phoenix121976 » Mon Mar 02, 2015 5:55 pm
Thanks Foggy

Any ideas on if i have to inform my IVA company of my husbands PIP award?
 
 

Foggy

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Post by Foggy » Mon Mar 02, 2015 6:16 pm
Most IP's offset PIP payments by equivalent expenses to cancel it out, but, as your husband isn't in the IVA I would think this would be of no interest to your IP, with the exception that some firms use HOUSEHOLD income to calculate the repayment (Payplan for instance).
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
 
 

lifenoteasy

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Post by lifenoteasy » Mon Mar 02, 2015 6:48 pm
PIP is awarded to the claiment who is your husband - if he is not in the IVA then any lump sum is his and not the households.

What is critical is when it was awarded/backdated from as that might impact on what you were assessed as paying.

You also need to identify the additional expenses to ensure that everything can be balanced out.
IVA started March 2011, Completed March 2016 and certificate issued 11 days after final payment. It was not always easy but then some of the best decisions aren't.
 
 

phoenix121976

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Post by phoenix121976 » Tue Mar 03, 2015 9:18 am
Hi,

Ok so just contacted my IVA company and informed them about the back pay we are going to receive and the extra help i will get from the housing etc which will increase my surplus per month. I was told to wait until April before submitting these changes and that my review wasn't due until July. So what am i supposed to do? I don't know how much they will want extra per month or how much of this over payment they want as well. It seems like they want me to screw up .
 
 

lifenoteasy

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Post by lifenoteasy » Tue Mar 03, 2015 9:43 am
As a suggestion set aside 20% of the lump sum and 20% of the PIP. It might sound like overkill but should provide the buffer.
IVA started March 2011, Completed March 2016 and certificate issued 11 days after final payment. It was not always easy but then some of the best decisions aren't.
 
 

Michael Peoples

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Post by Michael Peoples » Tue Mar 03, 2015 9:47 am
It sounds like the IP firm have no intention of backdating any increase and will only deal with it going forward. Hopefully they ignore the PIP for income purposes and you can reach a deal on the overpayment of rent. Perhaps a fair way would be for your share of the overpayment to be paid into the IVA and your husband keeps his. Most income and expenditures are done on a split so this would not be hard to do.
Michael Peoples | McCambridge Duffy Insolvency Practitioners
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If you would like to talk to me about proposing an IVA or have any questions at all please visit www.mccambridgeduffy.com
 
 

phoenix121976

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Post by phoenix121976 » Tue Mar 03, 2015 9:47 am
Surely as the pip is my husbands and not mine it cannot be included in my iva? I understand that the back pay of housing benefit and the extra income i will receive due to increased payments of housing benefit will go towards my iva but the pip and the pip back pay is my husbands not mine.
 
 

phoenix121976

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Post by phoenix121976 » Tue Mar 03, 2015 9:50 am
Thanks for the advice Michael, Hopefully Stepchange will be that amicable with this
 
 

lifenoteasy

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Post by lifenoteasy » Tue Mar 03, 2015 9:52 am
It depends on how your IVA company works out household income and how expenditure is split. The lump sum is your husband's but it represents a backdated weekly payment that would have been income from a certain point.

It's totally unfair especially given that the awarding of PIP is based on far harder criteria than DLA.
IVA started March 2011, Completed March 2016 and certificate issued 11 days after final payment. It was not always easy but then some of the best decisions aren't.
 
 

phoenix121976

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Post by phoenix121976 » Tue Mar 03, 2015 9:58 am
You're not wrong there, it was a hard fought battle for my husband to be awarded pip and even then he only got the standard rate on both elements. Here's hoping Stepchange are sympathetic to this.
 
 

lifenoteasy

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Post by lifenoteasy » Tue Mar 03, 2015 10:11 am
I would suggest getting a motability car but standard rate doesn't allow that.
IVA started March 2011, Completed March 2016 and certificate issued 11 days after final payment. It was not always easy but then some of the best decisions aren't.
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