Buying white goods and household items before going bankrupt

Davman1965

Hi, my debt relief order is being cancelled due to a back payment of benefits.
However, the assistant official reciever said that I can keep £700 of this in case I decide to go bankrupt.

So my question is, can I use some of this back dated benefits payment to buy white goods such as a new fridge and washing maching? bedding, clothes, a new ironing board to replace worn and broken items? My current fridge and washing machine were bought about 27 years ago and are faulty, and well past their sell by dates.
I really need these items as I have been on Universal Credit for two years and before that I was at university for four years and had to apply for hardship payments at least three times.

How much would I reasonably be allowed to spend? I don't want my spending to be classed as extravagant or reckless. I was thinking that between £400 to £430 for each white appliance would be a sensible figure?

I intend to buy one item first, after which I will contact my creditors with a pro rata offer to clear a quarter of what I owe as a full and final settlement. If they do not accept this I would have no option but to file for bankruptcy. If this happens I would like to buy more items for my house but I have no idea what would be classed as okay versus over the top. I was thinking a microwave and an air fryer. Could I argue that I need these as they would save me from standing up and cooking for long periods of time due to my disabilities? I am on benefits and have just been classed as unfit for work so I will be unable to work for a considerable amount of time. I also have no assets or savings.

A helpful list of what I am allowed to buy and how much I can spend would be welcome.

sourcrates

I think Fatbelly has already answered this for you.

The money is currently yours to do what you want with.

If the DRO is revoked, you are no longer bound by its terms, in the same regard, you have not yet filed for bankruptcy, so are not bound by those terms either.

If you do go bankrupt in the future, your OR will look at the purchase or disposal of assets in the last two years, if you have disposed of assets or anything of value, that may be looked into, the purchase of everyday household goods is perfectly acceptable.


Stop over thinking everything and go buy what you need.

maxmycardagain

let someone buy on your behalf ...

debt_doctor

Hi,

I agree with sourcrates with everything said.

DD

Davman1965

Not to worry I have found the manuals that the Official Reciever uses.
I will read up and that way I will know what he knows instead of taking advice from various websites and debt organisations including CAB, Step Change, Debtline, Debt Camel, all of who said that my money should not be touched as it was back dated benefits and all of who were wrong!


To be fair to Fatbelly, I think he is more knowledgable than most, though, even he admitted that he was not as familiar with the workings of Universal Credit as he should be.

Since I've been forced to think about bankruptcy I started looking at the "Income Payments Agreement". CAB's website says "If your only income is from benefits, you won't be asked to make an IPA"; Step Change's website says "If your income is solely made up of benefits or state pension, the official receiver won‘t normally set an IPA". "WONT NORALLY", yep this is the sort of thing I am talking about. Lots of contradicting advice from organisations who should know what the score is.

So this is why I am overthinking as you put it, Personally I think that under thinking and putting too much trust in others knowledge is why I'm in the s**t!