Compensation received on benefits partner on DRO

pma1979

Hi, new to the forums and have a bit if a dilema. I'll start at the beginning.
Sorry, think I originally posted in the wrong forum!
I am 32, lived with my ex partner for 9 years. We split up, then I met someone else. My current partner is almost 30, permanently in a wheelchair and has an 11 yr old Daughter. We live in a housing association bungalow and are on benefits (I quit work, to care for my partner.). In March, I applied for a DRO as I could no longer afford to pay my credit card etc debts of around £8000. My Partner has no debts, other than personal ones, which we also struggle to pay any of, due to my DRO only allowing £50 a month disposable.
Before I met my current Partner, she had a "misfortune" (no details as this is personal) and was advised to put in a claim for compensation from CICA. This week, we receoived a letter to say she has been awarded £11000.

The dilema: She wishes to pay back her personal debt. This was accrued when she moved house very suddenly due to the "misfortune". Her Mother spent almost £8000 on her credit card to help her move. Now, I have looked and, if we give away any of the money, apparently this could be construed as "deliberate deprivation"? If she doesn't pay back this money, we will continue to struggle to pay any if it back, but our benefits will be reduced! We also need to know, will this money affect MY DRO? If so, how can this be fair? This happened to her BEFORE she met me, so I personally believe, this money should not be taken into account re my situation, as I don't want any of it. I think it should be for HER to spend, as she sees fit. Can anyone advise us here?

RAS

Go over to the DRO forum and see if debt doctor is arround. He is very very good on DROs.

pma1979

Have done, THANKS

paddedjohn

i think compensation can be disregarded for a certain length of time

rogerblack

pma1979 wrote: »

Before I met my current Partner, she had a "misfortune" (no details as this is personal) and was advised to put in a claim for compensation from CICA. This week, we receoived a letter to say she has been awarded £11000.

Personal injury awards are discounted for the period of one year, generally, maybe more, depending on the circumstances (it can be for the life of the claim).

nissan25

Yes it is disregarded for 52 weeks - however DWP will ask in 1 years time for a breakdown of expenditure with receipts. A decision will be made on whether the expenditure / purchases were reasonable in line with reasonable living expenses.

So if they decide to pay off the debt this would not be permitted because she would not have been expected to pay the debt off in a lump sum - she would only be permitted the current weekly/monthly repayments over the past 52 weeks.

Reasonable expenditure could be home improvements etc but not luxury items such as tv, pc, car etc

Even though it would make sense to clear your debts when you claim means tested benefit you and DWP have to abide and apply the laws.

rogerblack

nissan25 wrote: »

Yes it is disregarded for 52 weeks - however DWP will ask in 1 years time for a breakdown of expenditure with receipts. A decision will be made on whether the expenditure / purchases were reasonable in line with reasonable living expenses.

This isn't my understanding (which is based on reading the decision makers guide on capital a few times).

Specifically - the first line of 'What is capital' 52610 'All the capital a person has is included when working out the amount of capital, but not capital that is disregarded'.

In the case of a PI claim it is (for example) disregarded for 52 weeks, during which period it can't be counted in the capital limits.
After that period, the question is, can it be held to be deprivation of capital if you've spent it frivolously.

During the period of the disregard, the money that was paid for PI is not capital - see the above.

Hence - all of the later 'deprivation of capital' rules can't apply, as it wasn't counted as capital at the time it was spent.

(Please note, I am not an expert in this field, if making any expenditure, which might be seen as deprivation of capital, contact the DWP first to see if it's OK)

http://www.dwp.gov.uk/publications/specialist-guides/decision-makers-guide/#vol8