Help and advice please we don't know we're we stand

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Jamie46
Jamie46 Posts: 4 Newbie
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JAMIE46
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Can I please ask help my self I don't know how to start a new thread sorry. My wife is coming to the end of her dro in the next few weeks but we was also involved in an car accident and in the middle of a personal injury claim with she may receive a cheque for if we was to cash a cheque after the 12 month order would there be any come back as she is panicking having herd there is also a 3 month probation period thanks
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  • alltaken
    alltaken Posts: 452 Forumite
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    I believe medical negligence is something that can be apportioned, personal injury is exempt from the IS, I'm happy to be wrong.
  • mwarby
    mwarby Posts: 2,048 Forumite
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    if you google for "dro personal injury claim site:forums.moneysavingexpert.com" you can find previous discussions. From what I've read it does impact on the DRO and may lead to it being revoked. Sounds like you need to discuss with intermediary. Worse case scenario she'd have to go insolvent by another route such as bankruptcy

    Attempting to conceal the asset (the cheque) is a bad idea and would be illegal.
  • mwarby
    mwarby Posts: 2,048 Forumite
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    alltaken wrote: »
    I believe medical negligence is something that can be apportioned, personal injury is exempt from the IS, I'm happy to be wrong.

    From what I've read on this forum while responding on the other thread, it looks like 'pain and suffering' type claims are exempt in BR and IVA but not in a DRO, which is unfortunate for OP
  • Jamie46
    Jamie46 Posts: 4 Newbie
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    Dose this include if the cheque was issued after the 12 month period is over witch it would be on the 20th but most likely with 3 months ? Thanks for all your advice
  • mwarby
    mwarby Posts: 2,048 Forumite
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    I don't think the 3 month thing makes any difference, as this is just when entry is still in register, but the DRO would still be completed

    In terms of the insurance payout, it rather depends on exactly when the asset was determined to have existed. I know at one point for PPI claims the assets would have existed the moment the PPI was missold not when a claim was made or laid out. In your case it could be the event which caused the claim, the date of claim, the date the amount was determined, the date cheque was issued, or received.
  • wba31
    wba31 Posts: 2,189 Forumite
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    If your wife is notified of an award before the end of her DRO, irrelevant of a cheque being sent out or cashed, she is duly obliged to notify the Insolvency Service, who will consider how much she has received as an asset, and determine if this should cause the DRO to be revoked or not. Failure to do so can lead to prosecution.

    If she were my case, I would advise your wife to notify the Insolvency Service now of what is going on, just to be open and up front from the beginning.

    The irony is that a personal injury claim can be made a few years after the incident, so this confusion could have been avoided.
  • Jamie46
    Jamie46 Posts: 4 Newbie
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    Thanks for all your advise I will get my wife to phone the insolvency service up and see were we stand thanks
  • Blouseortrousers
    Blouseortrousers Posts: 15 Forumite
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    What did the IS say when you called up?
  • mwarby
    mwarby Posts: 2,048 Forumite
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    If possible I'd be trying to get advice from one source, record it and act on it. Taking advice from many then maybe using advice to justify actions could get interesting.

    If payplan will give you on the record advice that they'll follow through on I'd take it.If it later proves to be wrong at least it you can say I was acting in the advice of payplan, which is pretty reasonable
  • debt_doctor
    debt_doctor Posts: 4,595 Forumite
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    Hi,


    From the Intermediaries Guidance for DRO's......


    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.


    So if the money is purely for personal injury then this will not affect the DRO and you can keep the money.
    Beware spending the money on something that could class as an asset until your DRO ends.
    DD
    Debt Doctor, Debt caseworker, Citizens' Advice Bureau .
    Impartial debt advice services: Citizens Advice Bureau Find your local CAB *** National Debtline - Tel: 0808 808 4000*** BSC No. 100 ***
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