Backdated PIP disability benefit

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lol2030

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Post by lol2030 » Sun Nov 01, 2020 8:30 am
Hi, I am in an ongping IVA. I opemed a new bank account. I was banking with Barclays but they are part pf my IVA as I was £2500 overdrawn and owed £4000 pn a barclays credit card. I have just been awarded £6000. Backdated PIP disability benefit. They have paid it into my old bank account!!. Can Barclays keep this money? I assume the account has closed as it has been almost a year since I used it. Also does PIP affect the payments that I pay for my IVA?

Foggy

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Post by Foggy » Sun Nov 01, 2020 10:07 am
They shouldn't keep it, but I don't know how easily they would give it back !

It seems that back paytments are dealt with in different ways by different IPs and you need to chat to yours about this (assuming you get it -- they might be able to assist).

Going forward, many IPs will account for PIP as income, but will immediately offset this with the expenses it is designed to cover --- I have seen this done as an itemised accounting (tedious) as well as a lump sum. It might increase your disposable income slightly if, say, the PIP covers an expense you are already being allowed.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
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lol2030

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Post by lol2030 » Sun Nov 01, 2020 10:42 am
Thanks for the quick response. I've been stressing out about it. I was thinking I might let my IVA fail and pay the £680 to go bankrupt (if/when get my PIP). Feel like you have to account for every penny under an IVA for the next 5 years. Had to fill tax form in. They said if I'm owed a rebate they take it off me. Constantly scared that I'm somehow breaking the rules 😂

Foggy

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Post by Foggy » Sun Nov 01, 2020 11:41 am
If you qualify maybe a DRO would be worth looking at, although failing an IVA is rarely a good idea and a bit of a gamble. Have a look here for info: https://www.stepchange.org/debt-info/wh ... lsrc=aw.ds
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
http://foggy.blogs.iva.co.uk

lol2030

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Post by lol2030 » Sun Nov 01, 2020 11:48 am
I owe 37000 so be no good. Dont know how I managed to dig muself in so deep. Why is bankruptcy risky? Do you have to go to court and do they look through bank accounts etc?

kallis3

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Post by kallis3 » Sun Nov 01, 2020 11:58 am
Bankruptcy isn't risky. After 12 months you would be discharged but may have to make an Income Payments Order for up to three years. You would not go to court but would have an interview with the Official Receiver (probably a telephone one) where your income and expenditure would be sorted and you would have to provide financial details.
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

Foggy

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Post by Foggy » Sun Nov 01, 2020 12:10 pm
Sorry -- I did not mean BR itself was risky -- but that failing an IVA was risky in that control would then be in the hands of creditors, rather than you. In your case BR might be the chosen option, but in the case of others thinking along the same lines, BR might be disasterous, depending upon their circumstances.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
http://foggy.blogs.iva.co.uk

lol2030

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Post by lol2030 » Sun Nov 01, 2020 12:20 pm
To be honest it's madness I was allowed that much credit.. I worked in a minimum wage job, live on my own in a council house and have mental health issues. I don't own anything and have no savings. They kept giving me more and more. Before I knew it I was paying £600 a month in debt. At the time I didn't have the money to go bankrupt. I think its ridiculous they think amyone who is going bankrupt can afford that. Thanks for the rwplies btw. Has me so stressed. Dont know what to do for the best.

kallis3

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Post by kallis3 » Sun Nov 01, 2020 12:30 pm
If you have less than £50 per month DI after normal bills are paid then a DRO could be a good option. Doesn't cost much and you would be free of debt after 12 months.
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

Foggy

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Post by Foggy » Sun Nov 01, 2020 12:58 pm
Sun Nov 01, 2020 12:30 pmkallis3 wrote:
If you have less than £50 per month DI after normal bills are paid then a DRO could be a good option. Doesn't cost much and you would be free of debt after 12 months.
Too much debt, Kallis :cry:
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
http://foggy.blogs.iva.co.uk

kallis3

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Post by kallis3 » Sun Nov 01, 2020 1:22 pm
Sorry - hadn't clocked that.
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
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