Debt Relief Order Advice

em80

Hi

I've just taken out a debt relief order, In october I'm due to get a study grant of £265( for books, study materials etc) to last me the year, I've now just received a letter from the tax office saying they owe me £188. Does this mean my DRO will fail?

DeadTall

Not necessarily.

(1) Tax refund - there may be scope for regarding this as income, spread over a defined period: I think this depends on what period the refund relates to and when the refund is made to you. e.g. if it relates to a period of 10 months it might be regarded as £18pm extra income. BUT - you need to speak to an authorised intermediary to find out more about this to be absolutely sure. Or the Insolvency Service themselves. I'd go back to your intermediary to start with, they may be able to enquire on your behalf.

(2) There may be scope for arguing that the study grant should be disregarded as an asset, as it is for a specific purpose - Sure Start maternity grants are disregarded as these are specifically for costs associated with a new baby. Again, speak to an authorised intermediary, they should have the latest guidance from the DRO Unit at the Insolvency Service. (They are known for moving the goalposts so make sure you have the most up to date advice!)