DRO limitations

MissFlossy222

No. 
They're only interested in large sums you receive during the 12 months which would mean that you are no longer insolvent.

sourcrates

gazzabun84 said:

should I inform them if I got a £2000 pay-out from a work injury from 2 years ago?

I assume you mean the insolvency service, and that you are on a DRO ?

There interest is exclusively confined to your 12 month moratorium period, no more, no less, what went on before is of no interest to them, this is not bankruptcy.

You do not need to tell anyone about anything that occurred prior to the above. 

flipflopflo

Do you mean the injury was 2 years ago but you haven't had the payout yet and expect it soon?

gazzabun84

yea thats right. I'm not bothered about the money, I just dont want it affecting me getting a DRO

fatbelly

It only becomes an asset once it's 'quantified' but you are supposed to declare the possibility to the IS

You are right that, as the rules stand, a £2k lump sum received during the moratorium would mean the DRO is revoked.

Compensation awards are a bit more complex than other lump sums:

Where a debtor is awarded personal injury compensation the AI should ascertain whether the right of action relates to general damages and/or special damages.
 
●       Special damages i.e. loss of earnings, care & assistance, travel & expenses etc. are an asset for DRO purposes.
●       General Damages i.e. compensation for the injuries received, are not an asset for DRO purposes.
 

gazzabun84

sorry to sound stupid but what do you mean by quantified?

fatbelly

At the moment there's a possibility of 2k compensation. But it could be any figure, even zero. So it can't be an asset. When you get a letter setting out how much it is and how it's broken down, then it's a quantified asset.