HMG savings plan and BR

maxmycardagain

A family member was on UC but started a £50/month HMG savings (help to save?)  by direct debit, she has £450 saved up, if she goes BR (or a DRO) will the OR snatch the savings? should she close the account now?

flipflopflo

In a DRO you have to have under £2000 of assets  

maxmycardagain

That doesn't mean they'd not snatch money saved though, just that over £2000 means you can't get a DRO

flipflopflo

You are allowed to have up to £2k in assets. If I’m wrong I’m sure @fatbelly will correct me. 

Can I just enquire who are all these friends of yours that need help that can’t ask on here for themselves or talk to StepChange or National Debtline?

maxmycardagain

flipflopflo said:

You are allowed to have up to £2k in assets. If I’m wrong I’m sure @fatbelly will correct me. 

Can I just enquire who are all these friends of yours that need help that can’t ask on here for themselves or talk to StepChange or National Debtline?

Some do, if they can get through, some don't do Internet or smartohones

Is it an issue? 

fatbelly

maxmycardagain said:

A family member was on UC but started a £50/month HMG savings (help to save?)  by direct debit, she has £450 saved up, if she goes BR (or a DRO) will the OR snatch the savings? should she close the account now?

Under either scheme the payment is unlikely to be an allowable expense, and generally it's not recommended to be trying to save while you have high-interest debts.

In a DRO there is no seizing of assets nor any payment other than the £90 fee. You either meet the criteria, or you don't, and either get the DRO or not. You're allowed 2k of 'assets' plus a car worth up to 2k

In bankruptcy any savings can be taken though small amounts may be disregarded. 

Your family member will need £680 for bankruptcy so it may make sense for them to continue until they have that sum. There is no way to avoid the fee, unfortunately. If it turns out they do a DRO then they can keep that sum (well all but £90) as an emergency fund