Im in my fourth month of BR, and today i received a letter about early discharge. They want another Income and expenditure form filing out. Our income has gone up by £50, but im sure our bills etc has too, so thats not a worry.
But now i also get £140 a month disability allowance. I obviously will declare it, but i just wondered if this is taken into account as my income for things like bills etc, when its actually for mobility and care.
So presumably you have expenditure on mobility and care - so put that down.
As far as I am aware it is Income by the way, but I stand to be corrected!
Regards, David Mond, Insolvency Practitioner for over 46 years. Personal Insolvency Practitioner of the year 2012, Personal Insolvency Practitioner of the year finalist 2013 & 2014 awarded by Insolvency & Rescue Magazine and 2015 finalist for Personal Insolvency Firm of the Year.
well no not really, i dont have an I&E on my mobility and care, because it is for activities to get me out of the house, and to use public transport with support and this can vary every month, depending on what i wish to do.
If its classed as income then theres no point me having it, because i cannot make use of it.
Well put down some outdoor activities that you would probably do to cover this income!
Regards, David Mond, Insolvency Practitioner for over 46 years. Personal Insolvency Practitioner of the year 2012, Personal Insolvency Practitioner of the year finalist 2013 & 2014 awarded by Insolvency & Rescue Magazine and 2015 finalist for Personal Insolvency Firm of the Year.
Make sure you list exactly what your DLA is used for. Make sure you explain that without it you would have problems getting out and about.
It should then be yours to keep xxx
I actually get it for depression and anxiety, and its supposed to be used for activities such as the cinema, meals out, just to get me out of the house occasionally. And the mobility part if to pay for taxis or for someone to come with me.
Im sure the OR will think im having a laugh!
Child Benefits - The only exception to the inclusion of state benefits in an income payments calculation is where a bankrupt is in receipt of child benefit, which is not an income based benefit (unlike child tax credit). The High Court has stated as a matter of public policy that child benefit should not be included in the statement of income when applying for an IPO and there is no reason why the same principle should not be extended to cover IPAs.
Disability Allowance - Where a bankrupt’s income solely comprises state benefits, it is unlikely that a surplus will arise except where they are in receipt of non-means tested benefits, for example Disability Living Allowance. The official receiver should consider that it is always open to the bankrupt who has a surplus and wishes to contribute, to make voluntary payments. If the bankrupt was minded to contribute on a voluntary basis, having been informed that their income appeared to be sufficient to produce a surplus taking in to account their reasonable domestic needs, a voluntary agreement could be incorporated into an IPA, but it would have to be clearly noted that no enforcement action would be taken if the bankrupt failed to make agreed voluntary payments.
Hope that helps.
Regards, David Mond, Insolvency Practitioner for over 46 years. Personal Insolvency Practitioner of the year 2012, Personal Insolvency Practitioner of the year finalist 2013 & 2014 awarded by Insolvency & Rescue Magazine and 2015 finalist for Personal Insolvency Firm of the Year.
Sharing from experiences of dealing with debt
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