Disability Benefits

Disability Benefits can often be a confusing topic, you can find out benefits rates for this year here>>
If you are unsure what benefits you might be entitled to, you can get help from organisations like CAB or One Voice. We use a really good website, which you can use yourself to find out your entitlement:
www.entitledto.co.uk

You can find out about different disability benefits and who they are for here>>

You can find out more about appealling a benefits decision or preparing for a tribunal here>>

You can find out about dealing with debt further down this page>>

You can find out about VAT relief for disabled people here>>

Loans and Grants

Community Care Grants
Community Care Grants are for people who are moving out of an institution or care home and into their own home, or for people living in their own home to help them to stay there and not go into a care home. You may also be eligible if you are settling down after an unsettled way of life (like homelessness) or if you need help to attend someone’s funeral or visit someone who is sick.
They are a one-off grant that does not have to be paid back, and it will not affect any of your other benefits.
To apply you need to be getting Income Support, income-related Employment and Support Allowance, income-based Jobseeker’s Allowance, Pension Credit, or payment on account of one of them or be likely to get one of them in the next 6 weeks because you are moving out of a care home.
The amount you get in a Community Care loan depends on circumstances and need - if you have got savings of more than £500, you will get less.
Apply on form SF300, available from Jobcentre Plus or download one here>>

Social fund Crisis Loans
These are loans you can get from the Directory of Works and Pensions, if you experience a crisis or a disaster. You do not have to be on benefits to get the loan. They are designed for people who cannot get help anywhere else.
You can get a form for a crisis loan from JobCentre Plus, or you can download one from here>>

Budgeting Loans
Budgeting loans are interest free loans that are paid for from the Social Fund. If you’re on a low income and need help with certain important costs, you may be able to get an interest-free Budgeting Loan from between £100 and £1,500 from the Social Fund.
To be eligible you must have been claiming income support, income-based Jobseekers Allowance or Pension Credit.
Budgeting loans are available for things like clothing, furniture, removal expenses and home security.
Your repayments are worked out at the time of the loan, and the repayment period is up top 2 years, depending on amount and circumstances.
To apply for a budgeting loan, you need to fill in form SF500, which you can get from Jobcentre Plus.
If you are refused a loan, you can ask for a review.
Cold Weather Payments
These payments are automatically paid to people on benefits when their local weather station has forecast a temperature of 0C or below for 7 days in a row. The payment is £25 every time it happens; it takes up to 12 days to process the payment.
If you think you qualify for a Winter Fuel Payment, but don’t get a pension or benefits then you will need to apply. Call the Winter Fuel Payment Helpline on 0845 9151515
You can find out if your postcode is one that has triggered a cold weather payment here>>

Debt

If you find you are getting into debt that you cannot manage, the first thing you should do is contact the people and organisations and companies you owe money to, and let them know the situation.
The next thing to do is prepare a monthly budget so you can work out what you will be able to pay off per month.

You need to work out what your priority debts are; they are things needed to sustain you – keep you in a your home, out of court or prison etc like: mortgage/rent, council tax, fuel, court fines and fees, any money owed to the DWP, car tax, television license etc.
You should then contact your creditors with an offer of what you are able to pay.
Usually organisations will make an agreement with you to pay a reduced amount for a few months and then review the situation.
It is also important to make sure you are maximising your income, and that you are saving when you can.
Online sites give lots of free information on ways to save money and maximise your income.

Many disabled people have positive stories about using http://www.moneysavingexpert.com/
Organisations such as One Voice or the CAB can help you with arrangements to manage your debt or budgeting.

Also the National Debt Helpline, has lots of information and advice on their website, or you can call them for individual advice: 0808 808 4000

Debt Relief Orders

A Debt relief order is an alternative to Bankruptcy to people who don't own their home, and don't have many assets. Your debt must be less than £15,000 and your assets must be less than £300.

It is a cheaper than bankruptcy (£90).

If your DRO application is successful, then none of your creditors can take action to recover your debts for 12 months. The debts are then written off after the 12 months are up.

You apply via the Official Recievers office, there is an online form here>>

Going Bankrupt

Making yourself bankrupt is expensive, but it means that you don’t have to deal with your debts any more – an Official Receiver is appointed to deal with them and take control of your money and property, and they will decide what you need to live on.
You are allowed to keep household property and a reasonable amount (decided by them) for living expenses. But they are allowed to take away and sell luxury items, a car etc.
After the bankruptcy order is over, you start again from scratch with no debts.
This will be a year or more after the original bankruptcy order.
After the bankruptcy order has expired it is still possible that the Official Receiver may make a bankruptcy restriction order against you, and these can last from 2-15 years.
The circumstances under which this order would be made is if you took on debts with no hope of paying them back or you didn’t co-operate with the Official Receiver. The Bankruptcy Order will prevent you from trying to obtain any further credit without giving your bankrupt status.
Procedure
You have to apply to the County Court of the area you have lived for the last 6 months.
You have to give them a non-returnable deposit at that time of £375, and probably a fee of £150 (the court may reduce the fee, depending on your circumstances).
You need to fill in forms 6.27 and 6.28, you can get them from here>>
There is also guidance on this page on what to put in 6.28.
Or you can get them from the Court.
On the form you have to fill in ALL your creditors.
Then you take the forms the money to court, swear an affidavit – saying you’ve told the truth on the form. The Court will then give you a date for your hearing, or hear your case then and there.
At the hearing they will make a bankruptcy order, freeze your bank accounts immediately, and set you up with a meeting with the Official Receiver.
OR they may decide that there is a better solution to your debt problem, and reject your application.
If they agree to the bankruptcy order, the Official Receiver will write to all your creditors telling them your financial situation. S/he will sell off your assets to cover some of your debts, and to take his/her fee.

Individual Voluntary Arrangements

There is an alternative to bankruptcy called an Individual Voluntary Arrangement (IVA).This is a legally binding agreement made through the county court to pay an agreed amount off your debts over a shorter period, such as five years. The rest are written off.
The IVA will be set up by an insolvency practitioner whose fees can be very high. Creditors can stop the IVA going ahead by voting against it. It is usually only worth looking at if you have a lot of money available every month to pay your creditors or you have a lump sum or assets that you can include.
You need to be careful if you own your own home as you may risk losing it.