Speaking to friends

[MerlinL14]

Her-in-doors and I were talking with friends the other night and they got on to the subject of debts and how they are struggling. They even asked us how we managed to be without debt (they perceived us to be debt free as they see us as always having a few bob, I wish!). Anyway I started to mention setting up an IVA and explained to them what it was and how it is administered and their commitment to it. They receive a mobility car and have disability living allowance, not sure exactly what or how much. I was not able to give them advice on how this benefit is calculated in the IVA but said I'd ask, so:
When getting benefits and mobility car's how is this taken into account?

[kazzafunk]

All benefits are taken into account as income, and then disregarded if used for a persons disability. My DLA mobility is fully wiped out by my motability car.

If they get DLA care - they would need to think about what they use that part on (extra washing, carers, cleaners etc) and put that down as an expense to get that element disregarded also.

[Shining]

Why not point them to the forum if they're computer literate although I'm sure the question has been answered by Kazza above. x

[kallis3]

We have a motability car and, like kazza, it's totally wiped out moneywise.

I think that the care component would be treated the same. Something to be discussed with a potential IP.

[MerlinL14]

Thanks, I think the answer I was looking for has been answered. I think our friends were worried that they would loose the car as they may have to pay over a percentage of the DLA. This may just be the good news that they need to kick start them into thinking about clearing their debts with an IVA. I have given them the heads up on this forum and to contact iva.com for further advice and support. I am not going to advise them on which company to go with if they decide to proceed, this has got to be a personal decision made taking their circumstances into consideration.

[kallis3]

No, they won't have a problem with the car. You never see the money, it just goes straight to motability.

[kazzafunk]

As Jan said you don't have the mobility component paid to you. You do have it listed though as an income on the proposal then noted that it's paid towards a motability car.

Get them to start thinking about what they use the care component for so that they are well prepared when they start seeking advice.

[kallis3]

Have to say that ours isn't counted on our I&E at all.

[kazzafunk]

I was advised it had to be on ours. If I get the care component in the future the advice was to note what it is used for. Maybe it differs by IP? Either way I would make sure I accounted for every penny - it's not a means tested benefit it's to make your life easier and I don't think they should be able to count it in disposable income at all.

[luluj]

My understanding is that DLA should be shown on both Income and expenditure - it will be disregarded if supporting a persons disability.
The whole DLA benefit is in the process of being reviewed and all in possession of it currently will be reassessed under the new criteria when it is formally launched......not sure how the new criteria will sit compared to what it is now, but it may mean some people gain from it while others loose out - any changes to the benefit will be shown on www.directgov.uk

[kallis3]

We told ours that it had been awarded but would be going on a car and they weren't interested.

[kazzafunk]

Bit different on the mobility side maybe Jan. The care side would be in your pocket and I presume IP's are happy to support you if you use it all on making your life easier. If you get higher rate care and don't use it then it's a lot of disposable income available to creditors.