Panic - please help!

Jendor

This is the first time I've ever posted to anything, so please excuse any errors.
My problem is this. Some 4 years ago, I left an abusive marriage, and the marital home. I did (and do not) wish to force the sale of this house, as my husband is making a home for our 26 yr. old son, who would not be capable of functioning on his own, due to minor learning disabilities.

I have been in receipt of HB and CTC during this time. I am over 60 and my State Pension was £3.18 p.w., to which was added £38.00 appx. Pension Credit. I was told I did not qualify for more help, as I had an interest in the marital home, judged to be worth (to me) £41800.00

Recently I was advised to divorce my husband, and claim State Pension on his contributions. This I have done, and have been awarded £90.00 p.w. pension, which seemed wonderful. However, I have lost any Pension Credit, and because of this have been advised by local Council that I am now liable to pay full rent of £120 p.w., plus full CT (exact figure not yet advised).

For reasons which I won't go into in full, I have credit card debts in my name of £38738.00 (Lets just say naivety in allowing cards to be obtained in my name, and a very dishonest ex.) My logic says that if I force the sale of the house, receive the perceived £41800.00, pay off debts, I'd be left with appx £3000.00, thus qualifying for PC and therefore HB and CT again.

I wondered whether I could make over equity in house to ex, or to my adult daughter, in return for legal agreement to be responsible for the debts. However, it seems I may be regarded as coming into "deprivation of assets" rule. What's worse, from reading the forum posts, it seems I could still fall foul of this ruling if I force sale, then use the capital received to pay off the debts myself.

Please someone, what do I do? I can't pay a rent that's more than my income, and I can see no way out, if the above conclusions are correct. In any event, if I enforce sale, I'd have to get a court order to make ex sell, followed by period waiting for it to sell, by which time I will be hopelessly in debt to Council, and evicted anyway. Please advise asap, I have to see Council by end of week.

Forgive length of post, but you do need to know circumstances to advise me.

zoezoe_3

I am confused by the rent and ownership situation,

you say you have £41800.00 in the marital home yet have to pay £120 pw rent ????

iceicebaby

the OP does not live in the marital home, her ex husband does and her son and she is renting elsewhere i think is the situation

Jendor

Sorry, didn't make it clear. Yes, I am renting elsewhere.

Morglin

HB for rent is very difficult to obtain at the full rate, when you are also a home owner.

These people should be able to advise you of the specific rules, and the best way to proceed:

http://england.shelter.org.uk/advice/advice-120.cfm/setcountry/true/?r=gaw&WT.srch=1&frmAlias=/housingbenefit/

But, I also think you need some legal advice about a way round this problem. These people give free advice about housing, benefits and debt:

http://www.clsdirect.org.uk/index.jsp

Lin