Charlie is a single parent and has mobility issues due to ongoing medical conditions…….
Client Profile:
Charlie is a single parent and has mobility issues due to ongoing medical conditions. His condition and mobility situation limit his ability to work, and this has reduced his affordability to a greater extent. He receives Universal Credit (UC) and had previously applied for Personal Independence Payment (PIP) without success. His mental health and physical health were spiralling after feeling so much stress with his financial situation.
Reason why client needs advice:
Charlie was referred to our service by his probation officer after his Individual Voluntary Arrangement (IVA) provider suggested he make enquiries about a Debt Relief Order (DRO). He needed debt and financial capability advice as he couldn’t afford to make the repayments of an IVA he had in place and was struggling to make ends meet.
What we have done to help the client:
Charlie was contacted by one of our Probation Caseworkers who assessed his income and expenditure. The budget clearly showed he couldn’t afford the IVA he had in place.
Advice was provided to maximise his income, and our Probation Caseworker identified that he may be eligible for PIP and LCWRA (limited capability for work and related activities) on his UC.
He was also advised about his debt options, based on his current circumstances. Charlie decided to finish his IVA and apply for a DRO.
The caseworker:
Supported him to terminate his IVA
Empowered him to raise a complaint to the Insolvency Service about being wrongfully entered into an IVA – with the hope of getting a refund for payments already made
Provided benefits advice to potentially increase his income via PIP and LCWRA
Provided energy advice to access social tariffs and reduce bills
Applied for a Household Support Fund that was awarded
Submitted a DRO that was approved
Outcome:
Charlie’s debt has now been written off via a DRO, providing him with a new start, he is now feeling hopeful about the future. Charlie feels empowered to manage his finances in a healthier way and finally feels he can focus on his health and family needs. Financial outcomes are:
£20,647.35 debt written off via DRO
HSF - £110.00 awarded
Cl was awarded LCWRA and PIP, increasing his income by £757 per month
IVA repayment savings £100 per month after termination
Utilities and energy savings of £700 per year
Charlie is better off by £924.5 per month
Clients feedback:
‘Thank you so much for the help you have given to my daughter and me. I was feeling very down and depressed, and now all my stress and suicidal thoughts have been lifted as I am now debt-free and getting the correct help from benefits and other helpers’.
NB: Names and certain details have been changed to protect our clients’ anonymity.