debt relief order and injury compensation payout

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Hi all. thanks for the advice in advance.

Im currently subject to a dro, it ends in july 10, not far off, thank god.

I was in a car accident last year and had substantial injuries. I have appointed a solicitor to get me compensation, the case is due to go to court in the next month and when a settlement for my injuries is reached i will get a payout, somewhere around £8000.

Bieng that this money is awarded to me for injuries and is to be spent on my medical expenses, i.e physio, psychotherapy. Also for my years gym membership to get healthy and for ceertain items around the house to aid support for my back. Would it affect my dro??

any advice or help would be greatly appreciated.

cheers

Comments

  • coinxoperated
    coinxoperated Posts: 1,026 Forumite
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    You would need to declare it to the insolvency service.
  • fatbelly
    fatbelly Posts: 20,699 Forumite
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    You would need to declare it to the insolvency service.

    ...if it's received within the morotorium period.

    The DRO would then be revoked, perhaps after a 3-month extension.
  • debt_doctor
    debt_doctor Posts: 4,595 Forumite
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    Perhaps your solicitor should slow down a bit.....;)

    DD
    Debt Doctor, Debt caseworker, Citizens' Advice Bureau .
    Impartial debt advice services: Citizens Advice Bureau Find your local CAB *** National Debtline - Tel: 0808 808 4000*** BSC No. 100 ***
  • harveybobbles
    harveybobbles Posts: 8,973 Forumite
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    Or have the money paid into someone elses bank...?
  • caz2003uk
    caz2003uk Posts: 673 Forumite
    Wedding Day Wonder
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    Or have the money paid into someone elses bank...?

    The money/claim would still be in the OP's name! Doing the above would be fraud!
    :jEngaged 25/12/11 :j
    :smileyheaMarried the man of her dreams and became Mrs M on 26th April 2013 :smileyhea
  • fatbelly
    fatbelly Posts: 20,699 Forumite
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    There are all sorts of issues here but as the op hasn't been back for a week now, I'm inclined to wave goodbye
    :wave:
  • Ralph78
    Ralph78 Posts: 1 Newbie
    edited 18 October 2012 at 2:05PM
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    My best mate has done his debt relief order however he is claiming for his car crash. He had the DRO in April this year. His witnesses have just emerged as beforehand the other party claimed it was 100% liability on his side because his wintesses couldn't be contacted. Now it's 60-40 liability split in the offer.

    I know full well that he got into that debt mainly because of the crash and its aftermath.

    Will he have to wait untill April next year to proceed with the payout or is it safe for him to claim now?

    Is the DRO going to be revoked or a DRRO be put in place with extended moratorium?

    The payout will be relatively small, say 3-5k and the DRO was for almost 15k so even if its revoked, the payout would not cover even a third of the debt. I guess even after DRO has been revoked, he could apply for bankruptcy? Apart from that pay-out that he will receive for his own car and his own suffering, he is on a very low income.
  • fatbelly
    fatbelly Posts: 20,699 Forumite
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    If he gets a lump sum of more than £300 during the moratorium, the DRO should be revoked. However, at this stage, he doesn't know how much he will get, or when, or even if there will be any payout. These things can take years.
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