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cathdaviduk
Starting Member
1 Posts |
 Posted - 30 April 2009 : 16:50:38
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| I am in receipt of incapacity benefit and have a lot of out goings. I am going deeper into debt borrowing to pay these debts, so would you please advise if I should declare myself bankrupt as this is making me ill. |
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chester2005
Average Member
United Kingdom
786 Posts |
Posted - 30 April 2009 : 16:59:27
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Firstlt welcome to the forum
Bankruptcy is only one option for dealing with debt.
It is also one that should be considered carefully.
That said, it is not a good idea to be borrowing from peter to pay paul.
If your outgoings exceed your incoming and your debts exceed your assets then you can declare BR.
Do you have any assets eg. car or house.
Dave
Don't worry or know that worrying is as effective as trying to solve an algebra equation by chewing bubble gum.(Baz Lurman)
Life's too short!!! |
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sjbyron
Average Member
United Kingdom
746 Posts |
Posted - 30 April 2009 : 19:26:12
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Hi,
An IVA may be out of the question, as you havent got a steady income, saying that employment support allowance which is the new name of incapacity, could be classed as income, but you would need to have a chat with an insolvency practitionier, may I recommend Melanie Giles, she posts on the www.iva.co.uk website.
A DMP is another option, but it depends, what is your level of debt, if its a high amount, and your not able to offer anything above £100 per month then this could be futile,
Another option is the debt relief order, which is similar to bankruptcy but you dont have to attend court, however it is only for debts below the £15k mark
Bankruptcy is another option, you will get reduced fees, but may still get an income payment agreement as some official recievers view certain benefits as income, so you need to make sure you fill in your SoA expenditure and income correctly and dont just put "recieving Benefits" on the form as this wont work.
Do you own your own house, could you arrange a remortgage or dependent on your age Equity Release.
I feel it would be foolish to borrow and consolodate as your benefits may fluctuate.
Best of luck
Stu J Byron |
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chester2005
Average Member
United Kingdom
786 Posts |
Posted - 30 April 2009 : 19:33:35
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If the only income is benefits then the most an OR can do is ask for a voluntary IPA it is not enforcable.
A DRO is only if you have no assets and your DI is less than £50 and Debt less than £15000
The CAB is responsible for administering the DROs at the moment
Dave
Don't worry or know that worrying is as effective as trying to solve an algebra equation by chewing bubble gum.(Baz Lurman)
Life's too short!!! |
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sjbyron
Average Member
United Kingdom
746 Posts |
Posted - 30 April 2009 : 21:21:57
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Hi Dave
An IPA is a voluntary arrangement between yourself and OR Hence the word arrangement whereas the order is made official if you cant agree
And As I said regarding the debt must be below the £15k bench march as one of the qualifying markers for a Debt Relief Order (DRO)
Thanks
Stu J Byron |
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chester2005
Average Member
United Kingdom
786 Posts |
Posted - 30 April 2009 : 23:16:37
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Yes Stu i know what the diference is between IPA and IPO but the OR cannot enforce an IPO against someone who is solely on benefits.
It is clearly stated in their technical manual section 31.7.9 the most they can do is ASK for a Voluntary IPA paid out of your disposable income.
Also the petitioner can only get a reduction in Fees of £150 if in receipt of certain benefits and sadly Incapacity benefit is not one. Income based (not contribution based) Income Support is though.
Dave
Don't worry or know that worrying is as effective as trying to solve an algebra equation by chewing bubble gum.(Baz Lurman)
Life's too short!!! |
Edited by - chester2005 on 01 May 2009 08:38:08 |
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paulsc
Junior Member
289 Posts |
Posted - 01 May 2009 : 08:49:34
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I have read 2 contridicting info on benefits .
1. That if main or sole income then a ipa shouldnt be sort.
2. And state benefits should be taken consideration in issuing a ipa if there is surplas income.
After read threads it seems to be hit and miss and depends on the OR you get , which doesnt seem fair
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chester2005
Average Member
United Kingdom
786 Posts |
Posted - 01 May 2009 : 09:01:53
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If the ONLY income in the household is benefits....
The following is taken directly from the Insolvency Service technical manual;
....."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."
Dave
Don't worry or know that worrying is as effective as trying to solve an algebra equation by chewing bubble gum.(Baz Lurman)
Life's too short!!! |
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paulsc
Junior Member
289 Posts |
Posted - 01 May 2009 : 09:06:30
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April 2008
Whilst an IPA should not be sought where the bankrupt's only source of income is state benefit [note 3], the official receiver should not automatically discount the possibility of obtaining a contribution from a bankrupt who has surplus income but is also in receipt of benefit. Any calculation to identify surplus income should include all available income, including state benefits, paid to an individual for the general benefit of that individual and their family. This includes child tax credit, which is also a state benefit and comprises part of the income available to the bankrupt and his/her family, against which an IPA can be calculated. The person making the income and expenditure calculation (usually the examiner) should initially ascertain whether the bankrupt is also in receipt of non-benefit income. If this is the case, an IPA should be considered, 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) to cover his/her reasonable domestic needs. An assessment can then be made as to whether the bankrupt is in receipt of surplus income. If an IPA is to be sought, any surplus should be less than or equal to income from the source other than benefits. 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, which is why an IPA should only be sought to the extent of the non benefit income.
I get confued with this
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I am in receipt of incapacity benefit
