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dougie
Junior Member
182 Posts |
 Posted - 27 August 2008 : 19:02:37
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hi have just had my or interview i am on income support sda and full dla he has stated that i have enough surplus to make payments to my creditors but i thought that dla was not taken into consideration and also the same with my income support i have no other income so can they do this thanks
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Jaks
Junior Member
177 Posts |
Posted - 27 August 2008 : 19:49:57
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| We are going bankrupt next Thursday. Our income consists of DLA, Income Support and Child Benefit. I have read somewhere that they can ask for an IPA payment if there is sufficient surpless but I don't think they can inforce one if your only income in Benefits. I think you can refuse to agree to an IPA in those circumstances. If you get any other money (for example a wage) they can ask you to pay into an IPS if your surpless is over £99. |
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dougie
Junior Member
182 Posts |
Posted - 27 August 2008 : 20:35:08
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| thanks for info will look this up have read that they cannot do this then c a b said they can although originaly the c a b told me his would not happen which convinced me to go br |
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John
New Member
United Kingdom
73 Posts |
Posted - 27 August 2008 : 20:36:05
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Hi Dougie
if you receive a written proposal for an IPA check amongst the wording for the term "voluntary contribution".
If it's there your being conned and you don't have to agree.
If it's not and you get the proposal, politely question the examiner's right to include these allowances when considering an IPA.
www.Bankruptcyhelp.org.uk
0800 078 9367 |
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John
New Member
United Kingdom
73 Posts |
Posted - 27 August 2008 : 20:42:58
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Hi Dougie
for your info and copied from this site
31.7.9 State benefits
An IPA should not be sought where the bankrupt's only or main source of income is state benefit payments without any other significant source of income [note 3]. This applies even in the rare circumstances where the official receiver's analysis of the bankrupt's income and expenditure discovers sufficient surplus for an IPA arising as a result of the income received by the bankrupt which either solely or chiefly comprises state benefits. The official receiver should consider that it is always open to the bankrupt who 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 repayments.
This does not mean that the official receiver must exclude all benefit payments received by the bankrupt when calculating available income for an IPA. The person making the calculation (usually the examiner) should first consider whether there is income paid to the bankrupt not comprising state benefit . If this is the case, an IPA may be a possibility, and any calculation of income should include all available income, including state benefits which are paid to an individual for the general benefit of that individual and their family. The notable exceptions to this rule when dealing with state benefits are disability living allowance (which is not considered by the Department of Work and Pensions to be income) and child benefit. The High Court has stated as a matter of public policy that child benefit and similar benefits should not be included in the statement of income when applying for an IPO and there is no reason why this point should not be extended to cover IPAs. Whilst it is acknowledged that in the figures for expenditure there may be outgoings for the benefit of the children, at least to the value of the child benefit received, to ensure that there is no risk of them being deprived of it, child benefit should not be included in IPA assessments. The Department of Work and Pensions website provides useful information regarding allowances and benefits currently in force and can be accessed at http://www.dwp.gov.uk/
Where the bankrupt is in receipt of benefits and other sources of income, the total income should be established (see other income sources at paragraph 31.7.7) and the bankrupt's reasonable expenses deducted (see paragraph 31.7.19). An assessment can then be made as to whether the bankrupt is in receipt of income surplus to his/her reasonable domestic needs. If there is a surplus of income, this surplus should be less than or equal to income from the source other than benefits in order for an IPA to be sought. It should be remembered that whilst the bankrupt's total income including state benefits should be included in the calculation of surplus income, it is the income from sources other than the benefit(s) which is providing the payments under the IPA/IPO, the surplus income from which an IPA is sought should not be comprised of state benefit.
www.Bankruptcyhelp.org.uk
0800 078 9367 |
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Jaks
Junior Member
177 Posts |
Posted - 27 August 2008 : 20:44:26
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| Am I right in thinking that Child Benefit cannot be taken into consideration when they are calculating your surplus on your SOA for an IPA? |
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Jaks
Junior Member
177 Posts |
Posted - 27 August 2008 : 20:45:40
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| oops crossed post - my question has now been answered in John's post. |
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BankruptC
Senior Member
1030 Posts |
Posted - 27 August 2008 : 21:39:54
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That's something I didn't know either. So do we still include Child Benefit as income in our I&E even though it can't be counted or do we leave it off?
Thanks,
CG. x |
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dougie
Junior Member
182 Posts |
Posted - 27 August 2008 : 21:53:51
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| thanks john will read carefully when it arrives have no other income although my partner has a widows pension she had o r interview in front of mine with no problems.the o r did say that he would have to seek further advise to see if he can implement his decission so..... |
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John
New Member
United Kingdom
73 Posts |
Posted - 27 August 2008 : 22:29:32
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Hi CG
the SoA asks for all benefits and allowances to be listed so you should include CB.
The examiner SHOULD exclude it though, and if not ask why not if an IPA is proposed.
As in my previous post, always look for 2 words within the text of any written IPA proposal "voluntary contribution".
If it's there don't sign unless you want to pay even though you don't have to as this is what voluntary contribution means.
I often wonder how many BR's have accepted IPA's with that wording within it and have assumed it's there because they have agreed it with the OR without going to court for a possible IPO.
www.Bankruptcyhelp.org.uk
0800 078 9367 |
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BankruptC
Senior Member
1030 Posts |
Posted - 27 August 2008 : 22:31:25
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Thanks John,
We are expecting an IPA anyway, but could this potentially mean it should be lower than they suggest, if they failed to exclude the CB?
CG. x |
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John
New Member
United Kingdom
73 Posts |
Posted - 27 August 2008 : 22:38:59
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Hi
Absolutely! Child benefit, as we all know, is not intended for you, it's for your children and your BR should have no impact on them.
www.Bankruptcyhelp.org.uk
0800 078 9367 |
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BankruptC
Senior Member
1030 Posts |
Posted - 27 August 2008 : 22:50:29
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Thanks John,
I'll keep my eye on that then. As you say I wonder how many have just let that go.
It's amazing the little nuggets of info I'm picking up all the time!
Thanks again so much,
Knowledge is power and all that! 
CG. x |
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dougie
Junior Member
182 Posts |
Posted - 13 September 2008 : 11:23:42
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| hi ipa agreement has arrived no mention of voluntary contribution the or is not including my dla so he says just income support and sda so the sum of £150.00 per month is expected the c.a.b. have changed their minds and now tell me he can do this yet i keep reading the or cannot as i have no other income but benefit am baffled as this amount is nearly a weeks money for me and family |
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Needafriend
Junior Member
United Kingdom
344 Posts |
Posted - 13 September 2008 : 12:20:38
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Hi Dougie,
I dont know what is goin gon there. Did it mention anything about NT coding on it.
Also we did not have our Child benefit or DLA for our eldest son included in our income.
Jo x
"There is light at the end of the tunnel, if you cant find it get a brighter torch"
For links to help with Bankruptcy, useful web pages and also a run down of my new debt free life, both before and after Bankruptcy, then please visit my blog:
http://debtfreejo.blogs.bankruptcyhelp.org.uk/ |
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dougie
Junior Member
182 Posts |
Posted - 13 September 2008 : 13:17:07
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| hi nothing about nt coding just states under the section 310a of the insolvency act 1986 not sure about child benefit as he did not mention it but how he concludes that i have so much left over is beyond me thanks doug |
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thought that dla was not taken into consideration
