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Joshua, Lawyer
Category: Law
Satisfied Customers: 26070
Experience:  LL.B (Hons), Higher Prof. Dip. Law & Practice
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I have one debt that stepchange is helping me with.because I

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I have one debt that stepchange is helping me with.because I now receive pip and severe disability payment along with ESA.they have counted this in so from paying £7 a month to £132 a month.are these disability payments exempt from debt recovery please.

Hello and thank you for your question. I will be very pleased to assist you. I'm a practising lawyer in England with over 10 years experience.

May I clarify are you presently in an IVA or bankruptcy or have you just come to a payment arrangement with the creditor?

Customer: replied 10 months ago.
Just a payment arrangement

Thank you for the above. If you have just come to a payment arrangement with a creditor there are no formalised rules as to what income can or cannot be taken into account. If you were in an IVA or bankrupt there are detailed rules as to what can and cannot count as income but a payment arrangement agreed by consent of both parties, those parties are free to agree (or not) any terms they wish.

If you were involved in an IVA or bankrupt the rule is that state benefits will not be claimed by the official receiver unless the insolvent person is also in receipt of other non - state benefits such as private pension etc. If they are then all income sources can and will be taken into account whe calculating what contribution should be made by the insolvent to the official receiver during the IVA or bankruptcy period however the amount of contributions claimed should not exceed the amount of non-state benefit income. In other words the insolvent should still be left with the state benefit income as a minimum.

If you are not being left with sufficient income as a result of the arrangement you have made you may wish to contact the creditor with a request to renegotiate the arrangement pointing out that if you were to enter an IVA or become bankrupt your state benefits could not be touched.

Does the above answer all your questions? If it does, I should be very grateful if you would kindly take a moment to click a rating for my service to you today. Your feedback is important to me. If there is anything else I can help with please reply back to me though

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