pip but on iva with stepchange

midnight1980

Hi is anyone on a iva and if successful I would get a back payment from pip , will they take the back payment from me and my pip payments going forward this would help me so much with things the back payment , that I need for my disability my washing machine has broke etc 
many thanks 

TheManFromLondon

Try getting an answer from here: https://debtcamel.co.uk/disability-benefits-and-debts/

It seems that your backpay and PIP can be claimed for your IVA, but you can offset them to expenses. The backpay will be more tricky to do that. Take a look at the link above, Sarah is the best source for your questions and will reply fast.

At the link above, scroll the page down to the end and post your question.

Good luck.

TheManFromLondon

I saw your question at DebtCamel so I put the answer here for others who may come across this post:

Your backpay and ongoing payments can be claimed. As Sara said, you should offset them to needs, since you get a PIP for your extra costs.

Please read:
“Any state benefits, including those relating to income (universal credit, child benefit and pensions, etc) and also ill-health, disability or caring responsibilities should be included as income. The insolvency practitioner should ensure that any caring related costs are also included as an expense within the relevant section of the SFS.”

Source: https://www.gov.uk/government/publications/individual-voluntary-arrangement-iva-protocol/iva-protocol-2021

woodbine

Is an IVA the best solution ? might you qualify for a DRO (debt relief order) ?

MW123

midnight1980 said:

Hi is anyone on a iva and if successful I would get a back payment from pip , will they take the back payment from me and my pip payments going forward this would help me so much with things the back payment , that I need for my disability my washing machine has broke etc 
many thanks 

My advice would be to speak to your IVA company as soon as possible and explain your situation, including the need for a new washing machine. They may be willing to allow you to use some or all of the back payment for essential expenses before including it in the IVA repayments. They should work with you to ensure the IVA remains affordable.

TheManFromLondon

woodbine said:

Is an IVA the best solution ? might you qualify for a DRO (debt relief order) ?

woodbine is correct! Anyone exploring a debt solution: DO NOT speak to an IVA company. First action is to read very well what each option means to you. Best source to start is debtcamel.co.uk and ask all questions there.

Then, fully informed, speak with a charity like NationalDebtLine.co.uk and StepChange and explore your options, but again, do not just go for what they suggest.

It is all subject to your circumstances but if one has no house and assets (and few other conditions), they should consider RDO or Bankruptcy first, you get out of it in 12 months and do not touch your benefits at all if thats your only income.

Read, explore, learn and understand, but DO NOT go to an IVA agent blindfolded.

I have got a Bankruptcy in 2016 and an RDO in 2022, it is not as scary s people think and while the first might feel a bit intrusive, it is still the best option compared with the havoc of an IVA.

Start with DebtCamel.co.uk and you can use the tool of Stepchange to see your options.

https://www.stepchange.org/setting-expectations.aspx

 tool requires you to open a free online account, enter all your debts, income, assets etc and prsents you with your options.

TheManFromLondon

I meant "DRO"... too much Red Dead Redemption Online I suppose...

woodbine

A DRO used to cost £90 for some reason the govt.abolished this charge in the budget.

midnight1980

I’m 4 years into iva so nothing else is an option I’m just awaiting an answer so when i know I’ll let everyone know incase anyone has this question many thanks for your answers 

Albus_Scope

Best of luck @midnight1980 hopefully you can get some answers soon. 

(And that's not a bad problem to have @TheManFromLondon )

laurapeach

midnight1980 said:

I’m 4 years into iva so nothing else is an option I’m just awaiting an answer so when i know I’ll let everyone know incase anyone has this question many thanks for your answers 

My IVA ends this year but the company I went through for it has always ring fenced my PIP and my daughters DLA, so it would be put down on the form as income but they would not use it in the end calculation for how much disposable income I have to put towards the IVA. They basically take it out as spending it on monthly essentials etc.