Helpp with paying debt whilst on benefits

[phoenix11]

Hi

Does anyone know what the situation is regarding a person's debt being paid off by someone else, whilst they're on Benefits?

 

My son is on DLA and JSA with bank debts which I have been sorting out in terms of the correspondence and getting the monthy payments down to a very small sum per month but involves constant communication and problems when the debts are passed on etc. (one with the FOS is causing major headaches).

 

This is very draining for me and I'm trying to see if I can find a way to pay off at least one or two of the smaller sums owing to get rid of the barstewards.

 

This would involve someone else in the family paying the debt.

 

So, if that could be arranged, would this affect my son's benefit payments?

 

He also receives Housing Benefit, being in supported housing with a HA. So, if he lost any part of his JSA benefit, would that also mean he'd lose his HB too?

[rebel11]

Hi phoenix

 

I haven't got the knowledge to answer your specific question, but the other guys hever have.

 

Has your son got any credit cards charges that he can claim back with contractual interest? Thats over 6 years plus. Or has he been mis-sold PPI that he can claim back with interest?

[phoenix11]

Information not requried - this is not a question about banks!!!!!!

Edited October 10, 2010 by phoenix11
as above

[rebel11]

Hi phoenix

 

Have a read of this thread, hopefully it will provide some answers:-

 

http://www.consumeractiongroup.co.uk/forum/showthread.php?36790

[phoenix11]

I've read that several times in the past - but it's got nothing to do with my question here.

 

I'm not asking about the banks at all.

 

Thanks.

[ErikaPNP]

Hi Phoneix. Would the money used to pay the loans be a further loan from you, which your son would repay to you or would it be gifted? If it's gifted, it would depend on the figure. Anything gifted which would have placed a claimant's capital above £6000 would affect his weekly rate of JSA, if his JSA is income based. It would also affect his housing benefit. Anything over £16000 would disentitle him.

 

If his JSA is contributory based, then it doesn't matter how much capital he has, but it would still affect housing benefit as this is always income based.

 

It would not affect his DLA.

[phoenix11]

Hi Erika

 

Thank you for the response - that is very helpful.

 

The money would not be a loan at all as he would have no way of paying it off. It's whether a family member could help ease some of the problem so it's not such a worry for both of us.

 

It wouldn't be anything like as much as £6000. The amount would be around £300 or less right now.

 

He is on Income Based JSA and I don't know how long that goes on for.

 

It's still hypothetical at the moment as I haven't even asked for the help as yet, and it may not even be possible. I just wanted to know without raising flags unnecessarily in case nothing could be done to help us.

 

I'm finding the JC really unhelpful with my own situation - they don't tell you anything until it's too late and when you try to sort out the mess, you get so much conflicting information that puts other benefits (such as HB) at risk.

 

So I'm trying to get all the facts straight before I even begin to try to get help.

 

Thanks again.

 

[ErikaPNP]

That amount as a one off payment shouldn't cause a problem.

 

Income based JSA continues until he finds employment or reaches pensions age, provided the entitlement conditions continue to be satisfied.