Huge one off payment, debts and Income support

LindsayJT

I borrowed a lot of money £30k from my ex-boyfriend 2 years ago to pay off various debts.
I now broke and am on income support but I desperately want to pay him back.
Good news is that I am going to get a compensation award soon of £25k.
The problem is it will be written out to me, I will have to bank it and then write cheque to ex-boyf.
Meanwhile I'm worried that it appearing in my account for a short day or so will mess up my income support entitlement.
Can anyone suggest a way round this please?

Oldernotwiser

I'm sure that if you can produce the papaerwork for the loan to your BF there won't be too much problem in paying him back this money.

Mojisola

I would get advice. I think that your income support may be taken away and if you've already given the money away, you will really be in difficulties.

[Deleted User]

LindsayJT wrote: »

I borrowed a lot of money £30k from my ex-boyfriend 2 years ago to pay off various debts.
I now broke and am on income support but I desperately want to pay him back.
Good news is that I am going to get a compensation award soon of £25k.
The problem is it will be written out to me, I will have to bank it and then write cheque to ex-boyf.
Meanwhile I'm worried that it appearing in my account for a short day or so will mess up my income support entitlement.
Can anyone suggest a way round this please?

Hi and welcome to MSE,this is definately one to get advice on,deprivation of capital is a thorny issue and looked at differently by different DM`s,if you cant get a straight answer from the DWP try here for legal help:
http://www.clsdirect.org.uk/

LindsayJT

I'm sure that if you can produce the papaerwork for the loan to your BF there won't be too much problem in paying him back this money.

There was no paperwork - it was a friendly agreement - should I have something in writing?

think that your income support may be taken away

How would they know? Do they check accounts? Sorry to sound stupid but I don't know how it works.

That link is interesting, thanks, but I'm afraid to tip them off. Is there another way?

[Deleted User]

LindsayJT wrote: »

There was no paperwork - it was a friendly agreement - should I have something in writing?



How would they know? Do they check accounts? Sorry to sound stupid but I don't know how it works.

That link is interesting, thanks, but I'm afraid to tip them off. Is there another way?

contacting cls wouldnt tip anyone off,but whats to hide?,you need to know if the dwp will see this as deprivation of capital or not,that being the case why not ask them(better in writing)if they say its ok then you can repay the loan and have a clear concious,if they say no then you dont repay the loan your I/S stops and you use the 25k to live on,again with a clear concious,looking for ways to do it on the QT only makes you appear like a fraud(not that i`m suggesting you are one)

Oldernotwiser

Is your compensation award for any kind of accident that relates to the reason for your receiving IS? I'm sure that I've read on here that you have to pay benefits back if this is the case. I haven't got time to check this out at present but I'm sure someone more knowledgeable will take it up, unless I've got the wrong end of the stick!

If this isn't the case then you must tell DWP about the money, whatever their answer is likely to be.

Mojisola

Oldernotwiser wrote: »

Is your compensation award for any kind of accident that relates to the reason for your receiving IS? I'm sure that I've read on here that you have to pay benefits back if this is the case.

This is what I've come across before - the compensation comes through and so does a bill for all the benefits you've had since the injury. The powers-that-be work on the basis that the money has been yours since the injury - even though its just be awarded now - and so you weren't entitled to the benefits. Once you do get your compensation you will not be entitled to IS any longer as you will be expected to live off the captial you will have.

If you pass the money on to your ex you run the risk of getting a bill you can't pay and your benefits stopping if they know about the compensation or, worse, the authorities finding out later and taking you to court for misclaiming of benefits. It's not worth it either way.

lil_me

Yes they can check bank accounts and do frequently so you need to be up front and let them know of your plans.

I am doubtful that it won't effect your income support. You will possibly have to repay the IS you have had since the injury also, I have known it to be reclaimed for Incapacity Benefit on many occasions and believe if the IS is claimed due to ill health/injury it will be the same rules. Welfare rights may be able to advise you on this. Even if the cheque wasn't in your name, if the person dealing with your compensation is aware you are claiming benefits they will probably notify them.

[Deleted User]

ok i`ve just been re-reading this thread,and whilst i wouldnt accuse anyone of fraud without knowing ALL the facts,it strikes me as odd that just as a compo claim for 25k is about to be paid,suddenly the OP is thinking of repaying a loan made TWO years ago??for 30k,begging the question where the other 5k coming from??

Oldernotwiser

woodbine wrote: »

ok i`ve just been re-reading this thread,and whilst i wouldnt accuse anyone of fraud without knowing ALL the facts,it strikes me as odd that just as a compo claim for 25k is about to be paid,suddenly the OP is thinking of repaying a loan made TWO years ago??for 30k,begging the question where the other 5k coming from??

I'm sure that's what the DWP would think as well; they're not daft!