Question regarding disposable income?

[Ryan88]

I'm currently on JSA, and even though I am struggling with finances at the moment, when negotiating with creditors and Debt Collection Agencies I find it difficult to work out a sufficient "income and expenditure" report.

 

I always seem to be left with quite a bit of disposable income, even though in reality I am struggling.

 

Living with parents allows me to pay a relatively reasonable amount of rent / board and lodgings each month. I don't pay for what is considered "essential" like Council Tax, Gas, Electric, Water Rates etc

 

Are you expected to use 100% of your disposable income for creditors?

(especially for someone whose only source of income is JSA)

 

What about unexpected expenditure? Emergencies?

 

Is there any good quotes I can use to defend myself?

[citizenB]

This is all very well whilst you are living with your parents.. but what if you had to move ? I think perhaps you revisit your figures again and perhaps set aside an amount for those items you havent included.. such as utilities/ council tax etc.

 

You can then perhaps use any pot that accrues to make occasional one off extra payments to your creditors.

 

You should always build into your Income and Expenditure a bit of wriggle room for emergencies.

 

I have attached a budget sheet which is widely accepted in courts and is used by other caggers on the forums.

 

It is my understanding that JSA is based on a calculation that the DWP believe you need to live on. They obviously dont include debts in that figure.

 

 

 

Ellens Budget Sheet.xls

[Ryan88]

Thanks for responding and helping.

 

I have filled in that Excel Budget Sheet and I have taken your advice on board which gives me a very different "money left over" total.

 

It is my understanding that JSA is based on a calculation that the DWP believe you need to live on. They obviously dont include debts in that figure.

 

Yeah exactly - it's difficult living on JSA as it is, without having multiple creditors to pay. I would hope any of my expenditure is reasonable.

 

My debts can be slotted into the following categories. Which ones are the highest priority?

 

Overdraft Charges

Catalogue

Mobile Phone Arrears

Payday Loan

[citizenB]

Overdraft

mobile phone

payday loan

catalogue

 

this would be my priority (although they are all unesecured and as such non priority debts )

 

Do you still use the bank which carries the overdraft ?

Are you still using the mobile phone ?

 

What you should really be doing is calculating a pro rata payment for each of the debts..

 

Try dividing the disposable income by the number of non priority debts

 

There is a more complicated system of then doing a percentage pro rata.. I dont quite understand that.. but I am sure there are others on CAG who will know how to do that.

[sillygirl1]

subbing

[Halibutt]

To answer one of your questions, the DWP always state in correspondence:

 

“You will be paid the sum of £xx per week, which is the legal minimum on which the Government believes you need to live on.”

 

So, that means that you have the Government's word on it that you literally cannot afford repayments. Creditors can't really argue against that. So, the general rule seems to be that a token offer of £1 a calendar month is sufficient to show goodwill and intention to reduce the debt(s).

 

As for your I&E sheet, bear in mind that if you don't want to, you're not obliged to send a copy to a creditor. Many people forget to add to their I&E things like:

 

Postage/stationery for sending job applications

Toiletries (deodourant, shampoo, soap, make up, etc)

Travel costs

Subscriptions to internet provider, for instance, which is now regarded as a necessity when job seeking (unless your local library provides facilities)

[Ryan88]

Thankyou "citizenB" and "Halibutt" - very helpful posts!

 

After speaking to the CCCS today they reassured me that in my circumstances I should just offer my creditors £1 per calendar month.

 

Another thing regarding Court - I always thought that with a County Court Judgement you don't actually go to court - just fill in paperwork and send it in the post. And the lady on the phone today from the CCCS confirmed this.

 

But I see a lot of posts on here with people talking about Court where they have to physically go to a Court? How is this so? Is this just when you dispute the enforceabilty of a debt?

 

And under what cirucmstances would I actually have to go to court in regards to debts from the following categories;

 

Overdraft

mobile phone

payday loan

catalogue

 

I don't dispute any of the debts...just can't afford what they are asking me to pay!

[sillygirl1]

Why are you worrying about court when you haven't had any paperwork - the lady at CCCS was misinforming you.

 

What usually happens is that the court papers arrive, people do NOT bother to defend (and they do not go to court) and an AUTOMATIC judgement by default is entered against them. That is why people do NOT go to court.

 

It is WRONG to take that route as many firms (as can be proved on here) use court as a threat and when challenged by a defence which we can help with depending on the debt) will drop the court case completely.

 

Worry about what IS happening rather than about what MIGHT happen and you will be able to move forward.

 

With the payday loan, what company is it, how much have you repaid already and have they sent anything to you? Most payday loan companies who have gone to court have had their interest pegged when challenged properly and most PDL companies now MUST be reported to the OFT and Trading Standards.

 

I can't help wiht the other debts.

[citizenB]

There is also another way.. if you owe less than a certain amount and have no assets then you can apply for a DRO - debt relief order - I have attached the National Debtline information sheet regarding these. You will be discharged from all your debts within the year and you can start rebuilding your life again.

 

It is the 5th section down the page

 

http://www.nationaldebtline.co.uk/england_wales/page.php?page=35_options_for_dealing_with_your_debts

 

If you are interested, then contact the National Debtline whose number is on the fact sheet.

 

Please let us know how you get on

[National Debtline]

Hello there,

 

Just to echo Citizen B's post a Debt Relief Order could be worth looking in to. We've a fact sheet which outlines a little more about how they work:

 

http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=37_debt_relief_orders

 

We also have an online money advice system, My Money Steps, it's a great tool to quickly show you which options might be worth considering:

 

https://www.mymoneysteps.org/

 

Best wishes,

 

National Debtline.

[citizenB]

Thankyou "citizenB" and "Halibutt" - very helpful posts!

 

After speaking to the CCCS today they reassured me that in my circumstances I should just offer my creditors £1 per calendar month.

 

Another thing regarding Court - I always thought that with a County Court Judgement you don't actually go to court - just fill in paperwork and send it in the post. And the lady on the phone today from the CCCS confirmed this.

 

But I see a lot of posts on here with people talking about Court where they have to physically go to a Court? How is this so? Is this just when you dispute the enforceabilty of a debt?

 

And under what cirucmstances would I actually have to go to court in regards to debts from the following categories;

 

 

When a claim is issued - you have the opportunity to either

 

a) admit the debt and complete a budget form .. or ..

b) dispute it and defend.. if there is a reason to dispute/defend.

 

If you choose option a) then it is unlikely you would go to court.

 

If you choose option b) then there is a real possibility that you might have to go. This of course depends on a lot of things.