DRO and personal injury compensation

vw_golf_nutter · 16 January 2018 at 3:08PM

Hi all,
In April 2016 I was in a car accident that wasnt my fault. Since then I have had a lot of health problems and have a lifelong condition that affects me being able to work.
It has nearly been 2 years since the accident and I have no end to my personal injury claim yet...
I have unfortunately been left with a lot of debt because of this accident, I cant work so all credit cards and store cards I had have spiralled out of control as I havent been able to make payments.
I have just filed for a DRO with Step Change and have paid the £90 fee.
I was told during the application that any compensation I get will be taken by the insolvancy service during the DRO but what I read online contradicts that...

The compensation I may get would likely be over £3000 but would purely be for paid and suffering and ongoing rehabilitation.
Would they take this away from me? Or would they revoke my DRO?

Its really stressing me out. I have no choice but to do the DRO but at the same time I cant afford to lose any compensation I may get. Im really struggling, i have 2 children and really struggle with day to day life because of my health, I could do with the money for living expenses and for childcare to take some strain off of me.

Any advice?

PrettyKittyKat · 16 January 2018 at 9:14PM

The only way you can know the answer to this is asking who is processing your DRO.

Do you have a rough compensation amount being pursued by your solicitors? What do they expect you may settle on/ get paid? This information will help them give you clear advice.

I only have experience of supervising IVAs but I know in those circumstances a client was able to keep a compensation payment that was to compensate for an ongoing injury that would require further treatment at the clients own cost, however they were not able to keep the proportion that was in the breakdown as being for loss of earnings, as this was income that they would have got (and paid the debts with now in the IVA). The DRO stance may be completely different. Therefore also give them the breakdown of what your compensation figure will be for (ask your solicitor if you are unsure).

fatbelly · 17 January 2018 at 12:00AM

vw_golf_nutter wrote: »

I was told during the application that any compensation I get will be taken by the insolvancy service during the DRO but what I read online contradicts that...

The compensation I may get would likely be over £3000 but would purely be for paid and suffering and ongoing rehabilitation.
Would they take this away from me? Or would they revoke my DRO?

Sounds like the advice given by Stepchange is (again) incorrect. They only need to read the guidance document and it's not long, or difficult to understand

Personal Injury Compensation Payments
When an intermediary is informed by a client of a right of action relating to personal injury, the intermediary should ascertain whether this includes special damages, e.g. loss of earnings, care and assistance, travel and related expenses. Rights of action should be brought to the attention of the OR so we can note this on the case file, no matter what elements of personal injury (special and/or general damages). Personal injury payments received before a DRO is approved are viewed as property. Personal injury payments received during the moratorium period will be dealt with depending on the composition of the payments (special and general damages). If the compensation relates solely to general damages and is received during the moratorium period, this will not adversely affect the DRO so long as the funds are used only for living expenses and not converted into tangible assets. Should the funds be used to make a large purchase, rather than on living expenses, the OR will consider revocation should the collective value of the debtor’s assets should exceed £1,000.

vw_golf_nutter · 17 January 2018 at 10:57AM

I really have no idea how much compensation I will get. Initially in the early stages I was offered £2000 but rejected that and now have an independant medical report stating i have ongoing injuries and they are now preparing a file for court and asking for a better offer. In my mind it could be anything £3000- £10000???
Im not expecting anything life changing thats for sure.

Stepchange have really annoyed me over this. When i initially made contact with them they asked me if i expected any payments, i said yes this compensation and was told that as its for personal injury it wont affect my DRO.
So for 3 months I have scraped together the £90 in installments to start this DRO and once ive paid they then tell me that the compensation must be declared to the Official Receiver and I can only keep £1000 of it!
Well im sorry but i havent made myself extremely ill with anxiety and depression fighting the insurance claim to walk away with £1000. No way!
I told them they are wrong and everything I have read, and been told previously has stated as its for injuries i can keep it.... the Step Change advisor went away 3 times asking different 'senior' members of staff and each time came back saying i wont be able to keep it.... I was on the phone 1hr 18minutes!!!

Anyway, ive now paid the £90 and submitted the DRO and did this on possible false information so am really fuming....

fatbelly · 17 January 2018 at 7:47PM

Stepchange do not make the rules - the Official Receiver does, and stepchange must abide by them.

The guidance notes are public domain, here:

https://www.gov.uk/government/publications/intermediary-guidance-notes-v15-dro2-guidance-for-approved-intermediaries

Search for Personal injury claims

I quoted from a different version but it adds up to the same thing. As long as this is for general damages and is used only for living expenses and not converted into tangible assets, you keep the funds and the DRO is not affected.

I don't know what to suggest you do about stepchange. Maybe print out the guidance notes and send your intermediary a copy!

StepChange_Rachael · 18 January 2018 at 9:45AM

Hi

I’ve come across your post and I’m sorry to hear you feel you’ve been given conflicting information.

We’d happily look into this further for you to resolve the matter. I’ve sent you a message so if you’d like to discuss this we can.

Thanks
Rachael

vw_golf_nutter wrote: »

Hi all,
In April 2016 I was in a car accident that wasnt my fault. Since then I have had a lot of health problems and have a lifelong condition that affects me being able to work.
It has nearly been 2 years since the accident and I have no end to my personal injury claim yet...
I have unfortunately been left with a lot of debt because of this accident, I cant work so all credit cards and store cards I had have spiralled out of control as I havent been able to make payments.
I have just filed for a DRO with Step Change and have paid the £90 fee.
I was told during the application that any compensation I get will be taken by the insolvancy service during the DRO but what I read online contradicts that...

The compensation I may get would likely be over £3000 but would purely be for paid and suffering and ongoing rehabilitation.
Would they take this away from me? Or would they revoke my DRO?

Its really stressing me out. I have no choice but to do the DRO but at the same time I cant afford to lose any compensation I may get. Im really struggling, i have 2 children and really struggle with day to day life because of my health, I could do with the money for living expenses and for childcare to take some strain off of me.

Any advice?

DRO and personal injury compensation

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