Debt Relief Order & Disability Living Allowance

[daveydavey]

Hi wondering if anyone can help. I'm due to see the CAB next week, currently in receipt of Employment Support Allowance (support group, migrated from IS already) & DLA middle rate care low rate mobility. I am a single adult with severe mental health problems & personality disorder, severe agoraphobia other issues.

 

What I wanted to know is whether or how DLA is included in an application for a debt relief order, should it be included as income ? there are extra costs associated with my illness i find it nigh-impossible to cook for myself & organise myself, have to have someone to clean & tidy the flat for me.

 

I'm in about 4,500 of unsecured debt (2 credit cards, payday loan, utilitites, paypal etc) my psychiatrist has advised me to sort my debts out somehow as they are adversely affecting my mental health, which is true, living under a cloud & just want to start again.

 

 

So what i would like to know re a DRO appllication is should DLA be stated as income in the income section ?

Should the exact amounts be deducted from the income in expenses section ?

what is the guidance for the official receiver on the issue ?

 

 

what i'm worried about is if they count DLA as income then they might say my income is too high (over £50 / month left over) to qualify for a DRO. I meet all the other criteria. I don't mind if my credit rating is shot I cannot handle credit!

 

If anyone knows or has been in this situation before then please please advise. If i start a debt management plan, then the debt will be hanging over me for years & years to come.

 

Any info much appreciated. thankyou

Edited August 21, 2013 by citizenB
formatting

[citizenB]

You might want to have a word with National Debtline.

 

 

http://www.nationaldebtline.co.uk/england_wales/

 

or call National Debtline free on 0808 808 4000

• Monday – Friday 9am-9pm
  
• Saturday 9.30am-1pm
  

You can telephone them for free on the number above until 9pm - they will be able to answer any questions you have regarding DRO and it will be quicker than CAB

[sequenci]

Hi there.

 

Your DLA will be classed as income - but you can take some, or all, of it out for your helath costs - in short you can sort of disregard it. DLA is supposed to be used for helath costs - and so it should be.

 

For the record I set up DROs

[Wintry]

Hi davey

 

Just following on from others

 

Recently updated info here on Debt Relief Orders from Citizens Advice that might give some pointers

 

http://mymoney.nedcab.org.uk/moneyadvice/dro.asp

 

Also You might have other options other than a DRO depending on your circumstances

 

Citizens Advice Online Debt Remedy Tool, Advice & Information Resource below again that may give you some pointers

 

http://mymoney.nedcab.org.uk/moneyadvice/index.asp

 

When you call or see an adviser best to have all information on your debts, housing, income, expenditure, assets, anything to do with employment plans & pen and paper available on the day.

 

Help is available

 

Best Wishes

Edited August 22, 2013 by Wintry

[Stressedandfedup]

I am in receipt of DLA for the same reasons. My local CAB helped me with the income/expenditure form and basically made sure there was no excess.

If you feel you can get to your cab then make an appointment or see if they'll help over the phone. If you have a HM worker, ask them to help you to do the forms. CAB can 'authorise' the DRO application.