will getting a personal loan stop universal creidt?

muffin07

I need to take out a personal loan and can do so as I'm working.  However, I also claim universal credit as i have a low income.  I need to pay legal representation fees for a private case that is harrowing and I can't possibly face alone without legal counsel, however it is estimated to cost around £17k.  If i get accepted for a loan of that amount, will it affect my universal credit or if I pay it directly to the solicitor to be held on account, will it then not affect it at all?  Thanks for any help. 

sourcrates

Low income plus UC plus Covid-19 = very little chance of a loan, and certainly not for one for 17k.
You need to re-think your options.

MalMonroe

If you are on a low income and need legal advice or representation, you can apply for Legal Aid.

Some very good information here - https://www.gov.uk/legal-aid

But if you are on a low income, I don't think you will be able to get a loan of £17k. Even if you did manage to get a loan like that, you will have to pay it back. That would scare me because it's a big debt that will take a very long time to pay off.

muffin07

I am eligible for legal aid due to domestic violence, however I cannot get the legal counsel i need as there are very few that accept cases funded by it.  I cannot represent myself with so much as stake.  I have to find a way of funding it and as i have no-one else to turn to, a loan is my only option.  If I can get approved, it's the chance i take of repaying it for the next few years.  All I wanted to work out, is if it is held on account with the solicitor, and therefore not sitting in my bank account, will it therefore not affect my Uc claim?  As if it's sat in my account, it could be looked upon as savings perhaps? 

macman

It would be a debt, not capital. But it's irrelevant, because you do not appear to have the resources to service a loan as large as £17K, so, unless your definition of low income is higher than we think, no-one is going to lend you that much.

sourcrates

It’s down to simple mathematics, your income is only one thing that’s looked at, but it must be high enough to make the loan affordable, if you are on UC, then your income will not be high enough to be able to service a loan of that amount.
For example, a £17,000 loan over 5 years, depending on interest charged, would be between £320-£460 per month>upwards.
Would your income be able to cover your essential living expenses plus the loan repayments for that amount of time ?

elsien

Have you checked on here?
https://find-legal-advice.justice.gov.uk/

Legal aid solicitors are still out there. 

ManyWays

It just isnt likely you can get 17000 unsecured if you are on UC. It would be madness to get a bad credit secured loan if that is what you are thinking of. 
But if you get the loan then you have cash and more than the UC capital limit, I dont think it matters what account it is in, if you try to hide this arent you risking benefit fraud. 

MEM62

OP, if you could obtain a £17 loan, from what little you have told us of your circumstances you would not be in a position to service it.  Whilst I appreciate that you may be in difficult circumstances at present, a loan of that magnitude is not a viable way out of it.       

DCFC79

OP you say low income but how much is the low income ?
I agree with everyone else I don't see you being accepted for a loan for the amount you require. 

Clive_Woody

A rough and ready estimation for loans is that you might be able to borrow around 50% of your earning. For a £17K loan that would mean you would need an income around £34k.

There are exceptions of course, but this is a significant loan and lenders are being more cautious at the moment.