Do DWP class a loan as savings?

flamehair_2

I recently had my Income Support stopped with no explaination. When I inquired they told me my case had gone to Investigations dept because I had excess funds.
The only thing I can think of is just after my husband died & before claiming Income support, I had to take out a loan to pay off massive debts that he left me, backdated mortgage arrears & payment for the roof to be fixed.
I put the loan straight into a savings account
I am an OCD sufferer & manic depressive therefore I cannot work & someone told me I could claim Income Support. Due to the nature of my illness I was unable to fill out the claim form & somebody else did it for me, all I did was sign it.
My question is, do the DWP class a loan as savings.
I am sick with worry. I appreciate any help.

dmg24

If it is available to spend, it is classed as capital. Do you still have the money? Did you take advice as to what you needed to repay for your husband's debts?

Who completed the form for you? Did they not ask what you had in your bank account(s)?

flamehair_2

hi,
Thanks for replying.
I only have a little of the capital left (under the DWP £16,000 allowance )
My husband had credit card debts & mortgage arrears which I paid with the loan. Unfortunately I have no proof it was paid with the money from the loan.
At the time when the person filled out the claim form on my behalf I was so sick & I cannot remember if I declared any info on savings.
Many thanks

dmg24

Who filled it in for you - was it a professional or a friend?

Do you still have over £6,000?

Why do you not have proof that the loan paid the arrears, and were these debts in your name also?

flamehair_2

It was an acquaintance from a self help group I went to (over 3 years ago) I do not attend it anymore so do not see this person any more.
I have just over the 6,000 left.
When I took out the loan I put it straight into a savings account & because there were so many debts I paid them through my bank account as & when it was needed, so these were all different time frames.
None of the debts were in my name.
Thank you

dmg24

If the debts were not in your name, it is unlikely that you actually had to pay them off, as they tend to die with the borrower (excuse the terminology).

I really think that you need some help with this - do you have a psychiatrist, support worker or CPN? They should be able to put you in touch with someone that can help. If not, you could contact DIAL or CAB.

flamehair_2

I thought too that the debts were written off on death but apparantly its down to the compassion of the organisation & believe me the credit card lenders were in no way compassionate.
I have no one I can turn to apart from that I am seeing my psychiatrist next month, I have nobody to act on my behalf & I am so very worried.

dmg24

flamehair wrote: »

I thought too that the debts were written off on death but apparantly its down to the compassion of the organisation & believe me the credit card lenders were in no way compassionate.
I have no one I can turn to apart from that I am seeing my psychiatrist next month, I have nobody to act on my behalf & I am so very worried.

That is wrong - if you are not a party to the debt the only thing they can do is claim against the estate. If there is no estate, they have no choice but to write off the debt. It seems you have been badly advised.

Contact your psych's secretary and ask if they have a Welfare Rights Advisor attached to the unit. They should be able to point you in the right direction.

Loopy_Girl

What are you planning on doing with the surplus £6000?

And how can you manage to pay a loan back from benefit money?

flamehair_2

I was informed that the debtors could make me sell my property to pay off the debts, so I took out the loan because I didnt want to lose my home. The CAB told me it was all down to the compassion of the debtors as to wether they followed up the debt or not. I took the loan out before I went on to Income support - I had a bit of money of my own then, thinking I could pay it back, but I was so scared & desperate I did anything to try & keep the wolves from the door. I am now paying the loan back with the available money I have left & I was living off the income support - but theyve stopped that now - its all just a terrible mess.

Loopy_Girl

All you can be is honest with them.

They may view it that you had alot of money, 'gave' it away and then clamed benefits - after all, the debts could have been paid off with small amounts every month rather than paying them all off in one chunk.

All you can do is explain everything to them.

They may or may not take action - but if they do then I guess you still have the 6K to live off for a while.