DRO help on personal injury?

gspec312

Hi all,

Just wondered if I can get some thorough and final confirmation on this. Last week I had an insurance payout....£700 for my car written off and £1200 personal injury.

Now does the £1200 have to be declared as it was paid for pain and suffering and not for loss of earnings, Im gathering the £700 definately does because I will be using that to buy a car.
Although im pretty sure the £1200 will become an asset?

I went to see my advisor at the CAB today and he wasn't 100% sure, but said if the £1200 does have to be declared then buying essential goods or furniture or laptop for Uni and a few £100 of clothes should be sufficient on the forms.


I have been looking through the forum and saw something similar to this with regards to an IVA and not many people were sure on it?

Any help at all would be great.

gspec312

Just another quick update, I have been browsing forums for days and this is what i have come across:

Re: What happens to a personal injury claim in bankruptcy?
by Tinchy » Tue Jan 26, 2010 6:30 pm

Thanks for your advice guys. I have spoken to my Trustee and he has confirmed that I would not have to hand over any part of the money I may receive for personal injury which is great news. He has asked me to keep him informed which of course I will do. Thanks again for your help.

Anyone advice on this please?

gspec312

Also happened to find this with regards to Bankruptcy. Don't know if this applies also?

This was the reply I received after my bike accident some weeks ago
from OR - I hope it is of some use:

The Official Receiver may have an interest in the claim, but would require further information to determine what percentage of the funds realised would vest in the trustee. The Official Receiver would not claim any of the funds for pain and suffering but would be able to claim for the other items in any award.

wba31

DRO and Bankruptcy have different rules so rules cannot be carried over from one to another to match.

In the DRO, the a personal injury claim is classed as an asset, it cannot be declared as an income and split over 12 months.

As I said in the main DRO thread, be careful in buying goods you want, rather than goods you NEED. just getting rid of the money to put yourself in a position to proceed could be seen as disposal of an asset.