Am I eligible for hardship?

[FM79]

Hello.

I'd like to put in a claim for hardship, but I don't know if I'll be eligible and wondered what you think.

I have a small pension that stops me from getting any benefits, which I could really use at the moment because earlier this year I had a leg amputated and as a result of this I have been unable to continue in my job.

My income is made up solely of my pension and Statutory Sick Pay, which will stop shortly. I've been struggling for nearly two decades to recover from debt problems and only now things have been beginning to look up. Losing the leg/job has really hit me for six.

I'm still waiting for a decision on Disability Living Allowance (if I didn't have my pension, I don't know how I'd cope on SSP only, but do they care?).

My pension alone is certainly not enough to meet essential living costs. Even with my old wages, due to repaying various debts, I've barely managed to pay bills and obviously have no savings.

I've borrowed money from family members to clear my overdraft because the interest payments were a nightmare.

I've remortgaged countless times. The wife has no income. I've got several loans to repay (more if you include repaying family members and another on top if you include paying back Tax Credits that I should never have had).

My other problem is that I've got adult children living at home. They've got their own debts and can't afford to move out. Even with them paying lodge, what goes out each month matches what comes in.

With this in mind, do you think I'll be eligible?

Thanks,
FM

[TUTTSI]

Re: Am I eligible for hardship?

Hiya FM

Welcome to Legal Beagles.

Can you please complete the Income and expenses summary http://www.legalbeagles.info/forums/...ead.php?t=5102 that will give us an idea of your overall position. Please post up here without any personal details.

Then if you have a good look here at claiming in hardship http://www.legalbeagles.info/forums/...ad.php?t=15761

This would be a start and we can then advise further.

Tuttsi

[Amethyst]

Re: Am I eligible for hardship?

the picture will be clearer from your IE sheet as Tuttsi says, however first impressions are that you SHOULD be eligible for hardship as you are struggling and it sounds certainly as if your outgoings are exceeding your income each month - do you have any arrears on your prioritys (mortgage/rent/council tax/utilities) ? Also which bank/s are you looking at claiming from ?

Sadly the hardship situation is if you have struggled like hell, robbed Peter to pay Paul and managed against the odds to stay on top of your debts, then many of the banks will see that as not being in enough hardship to warrant much or any of an interim payment.

Lets see what the IE says, but whatever it is certainly worth applying based on your benefits changes and change of circumstances.

Tax credits would be a priority (altho have you looked at getting this written off - why was there an overpayment / was it their fault or yours / do your current circumstances warrant it being wiped etc) and family/friends loans should be included on the IE although they would be lowest priority (in the banks eyes that is)

And yes, the benefit system sucks.

[FM79]

Re: Am I eligible for hardship?

Thanks Tuttsi and Amethyst.

I'll give it a try and get back to you ASAP.

do you have any arrears on your prioritys (mortgage/rent/council tax/utilities) ? Also which bank/s are you looking at claiming from ?

No arrears now, thankfully. Have had them all in the past, but things have been improving slowly through hard work and a very supportive family.

Banks are Halifax and Lloyds.

Sadly the hardship situation is if you have struggled like hell, robbed Peter to pay Paul and managed against the odds to stay on top of your debts, then many of the banks will see that as not being in enough hardship to warrant much or any of an interim payment.

That's what I thought. Sadly there are people much worse off than me.

Tax credits would be a priority (altho have you looked at getting this written off - why was there an overpayment / was it their fault or yours / do your current circumstances warrant it being wiped etc) and family/friends loans should be included on the IE although they would be lowest priority (in the banks eyes that is)

I've had the Tax Credits repayments deferred for 6 months. That's the best they would do. I've sent them an I&E form and letter explaining my circumstances, but they never replied, so I haven't been continuing making repayments and they haven't contacted me.

We've argued over whose fault it was: I say theirs, they say mine. In the end I just didn't have the energy to fight them, so I've been paying them back as and when I've been able to spare the cash. I have missed a few months and they got Debt Management involved.

Best,
FM

[FM79]

Re: Am I eligible for hardship?

I hope this is OK - my I&E data in PDF format.

Thanks,
FM

[TUTTSI]

Re: Am I eligible for hardship?

Hi FM

I have had a look at your I & E, and I have a some of questions for you.

1. Are you in arrears with your Mortgage or Utilities and if you are do you have documentation to back this up?
2. You have 4 in household, have you included all income for the household?
3. Do the kids contribute towards the home expenses, if they are working?
4. The non priority creditors you have as £605.98, but surely mortgage which you have included is a priority debt as it appears you have taken the offer amount of £495 + £110.98 shortfall.
5. Are you presently paying the other secured loans £100 + Other £150 + Other £35 = £285 is you are these should also I believe be included in monthly expenditure or is this just an offer?
6. How much have you paid in Bank Charges in last year?
7. Can you confirm what has caused you to fall into hardship? ie sick, reduced income etc..

Sorry to ask you so many questions, but in doing so we are building up a case for hardship.

Tuttsi

[FM79]

Re: Am I eligible for hardship?

Hi Tuttsi,

Thanks for looking.

1. Are you in arrears with your Mortgage or Utilities and if you are do you have documentation to back this up?

I'm no longer in arrears and haven't been for a year or two. I'm currently reclaiming mortgage fees.

2. You have 4 in household, have you included all income for the household?

I haven't included my children's wages, but neither have I included their bills, costs, debts, the things that they pay for that the whole family uses, etc. with my outgoings. Should I?

3. Do the kids contribute towards the home expenses, if they are working?

Yes, I have included their monthly lodge as Monthly Total Other Income (£240). This might not sound like much, but they're also paying for the car because I couldn't get credit and they make up any end-of-the-month shortfall when bills are due and I'm out of money. They cleared my overdraft for me recently too.

4. The non priority creditors you have as £605.98, but surely mortgage which you have included is a priority debt as it appears you have taken the offer amount of £495 + £110.98 shortfall.

Sorry, I don't understand what you mean by this.

I've put what I repay each month under Repayment: Current/Offer. The offers I've had for early settlement are still more than I can afford at the moment.

5. Are you presently paying the other secured loans £100 + Other £150 + Other £35 = £285 if you are these should also I believe be included in monthly expenditure or is this just an offer?

That's what I repay every month in total. The £35 is a Tax Credits repayment (temporarily deferred, but not yet confirmed), £100 is one loan, £150 is another loan. I also have non-priority debts to repay the family. No CCJs.

6. How much have you paid in Bank Charges in last year?

Only about £100 thanks to the kids, but much more going back to 2001... and far beyond. (I'm reclaiming everything from 2001 to the present: about £6k.)

7. Can you confirm what has caused you to fall into hardship? ie sick, reduced income etc..

Yes. I have had to give up work due to disability, so it's reduced income. I'm still waiting for a decision on DLA and am not entitled to any other benefits. I can prove all this.

Sorry to ask you so many questions, but in doing so we are building up a case for hardship.

No worries, I'm glad you can help. I'm just sorry I'm a bit thick.

Thanks again and Best,
FM

[TUTTSI]

Re: Am I eligible for hardship?

Hi Tuttsi,

Thanks for looking.

I'm no longer in arrears and haven't been for a year or two. I'm currently reclaiming mortgage fees.

I haven't included my children's wages, but neither have I included their bills, costs, debts, the things that they pay for that the whole family uses, etc. with my outgoings. Should I?

Yes, I have included their monthly lodge as Monthly Total Other Income (£240). This might not sound like much, but they're also paying for the car because I couldn't get credit and they make up any end-of-the-month shortfall when bills are due and I'm out of money. They cleared my overdraft for me recently too.

Sorry, I don't understand what you mean by this.

I've put what I repay each month under Repayment: Current/Offer. The offers I've had for early settlement are still more than I can afford at the moment.

That's what I repay every month in total. The £35 is a Tax Credits repayment (temporarily deferred, but not yet confirmed), £100 is one loan, £150 is another loan. I also have non-priority debts to repay the family. No CCJs.

Only about £100 thanks to the kids, but much more going back to 2001... and far beyond. (I'm reclaiming everything from 2001 to the present: about £6k.)

Yes. I have had to give up work due to disability, so it's reduced income. I'm still waiting for a decision on DLA and am not entitled to any other benefits. I can prove all this.

No worries, I'm glad you can help. I'm just sorry I'm a bit thick.

Thanks again and Best,
FM

Hi Tuttsi,

Thanks for looking.

I'm no longer in arrears and haven't been for a year or two. I'm currently reclaiming mortgage fees. That is good, how far have you got with reclaiming mortgage fees? if you get stuck the FOS is the best place for results.

I haven't included my children's wages, but neither have I included their bills, costs, debts, the things that they pay for that the whole family uses, etc. with my outgoings. Should I? OK, I just felt this was something that the bank may or may not pick up on.

Yes, I have included their monthly lodge as Monthly Total Other Income (£240). This might not sound like much, but they're also paying for the car because I couldn't get credit and they make up any end-of-the-month shortfall when bills are due and I'm out of money. They cleared my overdraft for me recently too. Sounds like you have great kids.

Sorry, I don't understand what you mean by this. ok, Mortgage £210 is already included on monthly expenditure. But the other priority debts total £285 I think they should be included somewhere in your Monthly expenditure which will then show that you are well in hardship and struggling.

I've put what I repay each month under Repayment: Current/Offer. The offers I've had for early settlement are still more than I can afford at the moment.
That is because your outgoings are in excess of your income and that is what would be epected in hardship.


That's what I repay every month in total. The £35 is a Tax Credits repayment (temporarily deferred, but not yet confirmed), £100 is one loan, £150 is another loan. I also have non-priority debts to repay the family. No CCJs. I would also add these into your monthly expenses and also leave them in the Priority debt, I expect that would make more sense.

Only about £100 thanks to the kids, but much more going back to 2001... and far beyond. (I'm reclaiming everything from 2001 to the present: about £6k.) Well that is a fair whack, and we will certainly try and help you recover some or all of this.

Yes. I have had to give up work due to disability, so it's reduced income. I'm still waiting for a decision on DLA and am not entitled to any other benefits. I can prove all this. When did your disability start and is this when your debts started to esculate?

No worries, I'm glad you can help. I'm just sorry I'm a bit thick.

Thanks again and Best,
FM

From what I can see so far you may well have a case for hardship, based on your disability as long as you have evidence to back this up and also posibility of evidences of the Tax Credits overpayments.


The next job is to get a letter together you will find some examples here http://www.legalbeagles.info/forums/...ad.php?t=17805 choose the type of letter and amend it to suit your circumstances. Then post it up here again omitting your personal details.

You will also need to list all your charges out, but the only weak part of your claim is that the last 6 months you have only incurred £100 in charges as your kids have helped you, this is the only point I see as a weakness in claiming under the FSA waiver hardship rules and based on this it may weaken your case.

We have always found that if a claim is well packaged it stands a good chance of success.

Just shout if you need some more help.

Tuttsi

[Amethyst]

Re: Am I eligible for hardship?

6. How much have you paid in Bank Charges in last year?

Only about £100 thanks to the kids, but much more going back to 2001... and far beyond. (I'm reclaiming everything from 2001 to the present: about £6k.)

Unfortunately that £100 is really all you'd be looking at getting refunded under hardship if accepted as such. You may as well put in your claim as some times there are suprises, but without priority arrears and not much in the way of charges since your circumstances changed, and the fact you're claiming against Halifax and Lloyds, I can't see you receiving much more than a couple months refunds and a stay till the outcome of the test case.

You need to get your charges claims in to the banks regardless of hardship anyway so it won't hurt to put the extra info in about your circumstances and enclose your Income and Expenditure sheet, but I'd hate to give you false hope of an early cash injection.

Definately add your family debts to the creditors, they will be more or less discounted by the bank, but every little helps.

Take off the mortgage payment from the priority arrears - as its not an arrears payment and you have it included in both sides.

The secured loan also all wants to go on the outgoings side rather than the arrears side as you have that on both sides.

If you go back to the debts sheet you should be able to overtype OTHER with tax credit overpayment for the £35 (which is a priority debt so is okay where it is)

The other loan, unless its secured in which case it should go on the outgoings side, should go in non priority debts.

Hopefully that makes sense, just shifting a couple bits about basically.

[FM79]

Re: Am I eligible for hardship?

Thanks Tuttsi.

I'm no longer in arrears and haven't been for a year or two. I'm currently reclaiming mortgage fees. That is good, how far have you got with reclaiming mortgage fees? if you get stuck the FOS is the best place for results.

Thanks. I've got the letter with my breakdown of fees ready to go first thing Monday, plus one for my credit card and bank charges. If I can get the I&E form off as well, so much the better. It'll be nice to get them all out of my hair.

I haven't included my children's wages, but neither have I included their bills, costs, debts, the things that they pay for that the whole family uses, etc. with my outgoings. Should I? OK, I just felt this was something that the bank may or may not pick up on.

This is what I'm worried about. I think their earnings stop me from receiving benefits (but my pension alone is enough to live on, they say).

I could add their wages and outgoings. They probably cancel each other out in the end as they have their own debt, loans, HPs, etc. What do you think?

Yes, I have included their monthly lodge as Monthly Total Other Income (£240). This might not sound like much, but they're also paying for the car because I couldn't get credit and they make up any end-of-the-month shortfall when bills are due and I'm out of money. They cleared my overdraft for me recently too. Sounds like you have great kids.

They've been great. I'm paying them back and paying them more than I was paying the bank, but at least I can see the debt going down. The interest they were charging was a killer.

Sorry, I don't understand what you mean by this. ok, Mortgage £210 is already included on monthly expenditure. But the other priority debts total £285 I think they should be included somewhere in your Monthly expenditure which will then show that you are well in hardship and struggling.

I understand now and have made some changes and attached a new form. I hope it's OK.

Yes. I have had to give up work due to disability, so it's reduced income. I'm still waiting for a decision on DLA and am not entitled to any other benefits. I can prove all this.When did your disability start and is this when your debts started to esculate?

In the spring, but I was in hospital for a few months. I had a medical recently so I hope the DLA decision is not too far off (not that I expect to get much DLA anyway).

Losing my wages and dropping to Sick Pay is definitely the problem now. I was just about managing with my wages, but now I'm down to Sick Pay, it's getting harder and I don't want to further burden my kids. I'd be in a worse mess if not for them.

I don't expect to get anywhere with a hardship claim either really, but have to try.

You will also need to list all your charges out, but the only weak part of your claim is that the last 6 months you have only incurred £100 in charges as your kids have helped you, this is the only point I see as a weakness in claiming under the FSA waiver hardship rules and based on this it may weaken your case.

This is what I thought. It would probably look better if I still had my overdraft.

Thanks again Tuttsi.

Best,
FM

[FM79]

Re: Am I eligible for hardship?

Unfortunately that £100 is really all you'd be looking at getting refunded under hardship if accepted as such. You may as well put in your claim as some times there are suprises, but without priority arrears and not much in the way of charges since your circumstances changed, and the fact you're claiming against Halifax and Lloyds, I can't see you receiving much more than a couple months refunds and a stay till the outcome of the test case.

You need to get your charges claims in to the banks regardless of hardship anyway so it won't hurt to put the extra info in about your circumstances and enclose your Income and Expenditure sheet, but I'd hate to give you false hope of an early cash injection.

Definately add your family debts to the creditors, they will be more or less discounted by the bank, but every little helps.

Thanks Amethyst.

I appreciate your honesty and agree with you: I don't hold out much hope of getting anything out of Hardship, but am going to try anyway.

My amended form's attached to the above reply to Tuttsi. I hope I've put everything in the right place this time. I haven't added family debts yet. Not sure about doing that. I don't really want to bring them into this.

If you've got a moment, would you check over it for me please?

Thanks and Best,
FM

[TUTTSI]

Re: Am I eligible for hardship?

FM,

I have just checked your I & E and that now reads a bit better, but in the meantime try the site link below to see if you are getting all your benefits. Some priority debts would have been more advantageous. But your drop in income with your disability may swing it and the fact that your expenses are more than your income.

Can you please post up your letter which you intend sending in case we can improve it for you. It really is best to make sure that you have covered everything otherwise it slows down the processes.

Good luck

Tuttsi


http://www.entitledto.co.uk/

[FM79]

Re: Am I eligible for hardship?

Thanks for giving it another look, and thanks the link Tuttsi.

I'm going to reapply for certain benefits when I finally get a decision on DLA, because I'm told that then the floodgates might open!

I'll post my letter shortly.

Thanks again,
FM

[FM79]

Re: Am I eligible for hardship?

No letter yet, I've been tweaking my I&E.

Before I found this forum, I tried the Consumer Credit Counselling Service's I&E form - http://www.cccs.co.uk.

Just wondered what your thoughts are because they told me that they were

concerned that the amount you have budgeted in the following areas varies too much from our recommendations.

- Satellite

Your figure £60
Recommended maximum £21

- Tobacco

Your figure £120
Recommended maximum £102

What should I do? If I put a bit more on my food total, would they want proof of receipts? I don't know if I've not put enough down for one thing or if I've put too much down for another...

Thanks,
FM

[TUTTSI]

Re: Am I eligible for hardship?

Hi FM

I can not see that you have identified these items for satelite and tobacco separately on you I & E, Maybe you have already lumped them together under household?

They should not need to ask for receipts for household expenses although they may ask you to break it down further. £738 per month = £171 per week for 4 people and for household may appear to be slightly on the high side so I certainly would not increase that any further, possibly a decrease, but see what others think?

Can you please advise what is included in other monthly expenses of £137.33(this equates to £32 per week) ?

What about clothes? Haircuts, prescriptions/medications, dentists etc etc..are all these taken into account?

Tuttsi