Whose income is used when calculating disposable amount

[alfwithhair]

This is just a general query regarding who's income can be used when calculating a disposable amount to pay to creditors.

 

Without boring you all with pages of details, I will cut stright to the chase.

 

I not been in paid employment since 1994, for want of a better term I was a house husband. Then in 1996 my wife became ill and could no longer work. I continued to stay at home to care for her as I still do.

 

My wife receives longtime incapacity benefit with a small element of income support to make up the amount the law says we need to live on as a couple, plus DLA care componant. So with regards to my creditors request for my income, what is it? As I do not actually receive any. My wifes benefit includes a dependants element as we are a couple but it is not paid to me as I do not claim anything.

 

So would I be correct in assuming I have no income? Or would a judge class part of my wifes benefits as my income as she receives extra for me as a dependant?

 

I have often wondered about this legality and this situation may relate to many members on this forum.

 

Thanks again for any advise and keep up the good work guys. We would be fish food without you.

 

alf

[rory32]

Hi Alf,

 

I am fairly sure that a judge would rule that the dependants allowance is your income (even though you don't directly receive it). However, you can and should make a list of the outgoings that this money goes on. This I imagine will show that you have little or no disposable income.

 

Are you a homeowner? If you have no prospect of having any disposable income then creditors may go for a charging order rather than write the debt off.

 

You may wish to contact National Debtline for a more definitive answer on this re the allowance.

[alfwithhair]

No I am not a home owner, no savings and nothing of any value.

[rory32]

Then they don't have any means of recovering the debt, as even if they argued that you have some sort of income you spend it on essentials.

 

They really only have two options:

 

1. Is to make you bankrupt (no point as it costs them money and they won't see any return); or

2. Write the debt off and get the tax breaks on it.

[PriorityOne]

As DLA is not a means-tested Benefit, it should not be included in your income/outgoings as disposable income. It's not intended to be used for the repayment of debts.... it's awarded on the basis of an individual's care needs.

 

I had this argument many years ago with a creditor.... when I was receiving it on behalf of my young daughter.

[alfwithhair]

Quite right PriorityOne, I do not include the DLA on the incom/expen sheets. It is not taken into account when working out other benefits like Housing and council tax, so they are not getting their fingers in it.

 

rory32, you say they have these two options

 

1. Is to make you bankrupt (no point as it costs them money and they won't see any return); or

2. Write the debt off and get the tax breaks on it.

 

So I presume by what you are saying there is little point them going for a CCJ either, as they will get no more than they get now.

[rory32]

Exactly.

[Jeff2000]

Hello alfwithhair,

 

Should you require a decent spreadsheet to do an income and expenditure sheet, I can e-mail you a copy of one.

 

Just let me know.

 

 

Best wishes, Jeff.

[alfwithhair]

Thanks Jeff2000,

 

I have excel on the comp so can use that, but thanks for the offer, much appreciated.

[Jeff2000]

Thanks Jeff2000,

 

I have excel on the comp so can use that, but thanks for the offer, much appreciated.

 

 

Hello alf,

 

 

I meant to say I have an excel template that works out all your payments to your creditors etc!

 

 

Cheers, Jeff.