debt relief order and injury compensation payout

danjamin

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

coinxoperated

You would need to declare it to the insolvency service.

fatbelly

coinxoperated wrote: »

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

Perhaps your solicitor should slow down a bit.....;)

DD

harveybobbles

Or have the money paid into someone elses bank...?

caz2003uk

harveybobbles wrote: »

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!

fatbelly

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

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 I guess even after DRO has been revoked, he could apply for bankruptcy?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

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.