Benefits & Savings

Caz3121

paying off debt before it is actually due can be classed as deprivation and you are counted as still having the excess, making monthly payments is fine as is paying it all if it has been defaulted and with debt collectors. Paying off a debt that is not yours would be the same as giving the money away to someone else

[Deleted User]

if he has left her with debt then she might want to contact one of the national debt charities (step change for example)for advice,it maybe possible for her to do a DRO (debt relief order)

mse take on DROs

https://forums.moneysavingexpert.com/discussion/1385275

konark

Depends what the debt is, if its an overdaft then that's ok but paying off an existing loan which she is contracted to pay off monthly over a period of time is not. Credit cards are a problem, there is no obligation to pay more than a token amount yet it would be prudent to clear off the full amount.

Pete1054

So even though I have £9,000, it wouldn't look dodgy that we're living together as a family and she's got debts of £1,000? I was just trying to do the right thing.

The debt is in three sections. The majority is an overpayment of CTC which is being paid back monthly over the next few years. The other two are debts he has left her with; one being a catalogue debt which he pays back each month, and the other a Paypal account. He opened the latter two in her name, however she used the catalogue following her knowing this and has been told she can't claim fraud because of this.

As I say, as galling as it would be to pay for somebody elses idiocy, to get our family life off on a footing may be worth the payment. I'm not sure where I stand.

pmlindyloo

I am wondering if people are getting confused between income based benefits such as JSA/ESA/IS and HB which the OP is claiming.

Unless the legislation has changed paying off debts when you are claiming HB is not seen as deprivation of capital.

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/365783/hbgm-bp1-assessment-of-capital.pdf

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Hopefully Housing Benefit Officer or someone with similar knowledge will come along and comment.