I received a lump sum in disability benefits but discharged from Brankruptcy

worldlad909

Hello,

I was discharged from bankruptcy around 18 months ago, I recently received a lump sum (few thousands) from the DWP in disability benefits which should have being paid but wasn't.

I was recently informed I need to contact the official receiver to tell them I received this money, even though I am no longer bankrupt.... Is this correct? Will the OR take this money from me?

Thanks

-taff

I would ask on the bankruptcy board, but I doubt they can take benefits....


edited - oops, I thought this was on a different board, my bad...

Jono987

As far as im aware, its classed as a 'windfall'. Windfalls cannot be claimed after you have been discharged!
However, it may get murky if this money should have been paid while you werent discharged but for whatever reason it wasn't.

Hopefully someone with more info can help but i was told after discharged any windfalls (lottery wins, inheritance etc) cannot be claimed.

ToxtethO'Grady

It's after discharge so it's yours.


Shouldn't be an issue, the OR will want to know if you knew you were going to receive this before or during your BR, if not it's yours

Skintnorthernmonkey

Just take the money and shush. Don't like the sleeping bear.

Feral_Moon

If it's from benefits, surely it shouldn't make any difference whether it's arrears which should have been paid during bankruptcy?

ToxtethO'Grady

If the OP has another earned income now it can have an impact as there is guidance about benefit arrears paid post BR - so if they can prove the OP knew they were due these arrears and they are now working it 'could' be looked at again


Section (c) Arrears of benefits received post bankruptcy

31.7.44 Claiming arrears of benefits received post bankruptcy where bankrupt also has non-benefit income (IPA/IPO)
Where the bankrupt receives a payment of benefit arrears post bankruptcy (and is in receipt of other (earned) income), the official receiver can include the benefit arrears payment as a source of income to be included in an income payments calculation. If, by including the benefit income the bankrupt has sufficient surplus income (from non-benefit income), from which to make an IPA contribution, an IPA can be agreed.
It is suggested when calculating an IPA to include arrears of benefit income, the amount of the arrears is divided by 12 months (treating it as an “income boost” over the period of a year) and the corresponding monthly amount included in the calculation over a 12 month period.