Starting a business then applying for a personal DRO

bobbydazzler1974 · 1 October at 12:01PM

Hi,
so in short, I’m off work ill, I’ve got a disability as recognised under the equalities act 2010. Settlement with employer possible, claiming UC standard rate and housing element, and at risk of homelessness, council housing team are supporting. CAB helping with £30,000 debt, DMHEF should be on its way to creditors but a DRO is looking like the best option probably around Dec or Jan.

I will lose my work car when employment is terminated. if I get a settlement amount from work in Oct or Nov, I think I can buy a car for up to £4000 value as I will need it for my independence, due to my disability I will struggle to find suitable and sustainable employment, therefore is it acceptable use of the settlement money remaining after car purchase, and to ensure I have stable accommodation and income, to use the remaining money to buy ‘tools of the trade’ to start my own business (it will be trading as my name, it won’t impact universal credit as the ‘start up period’ of 12 months is allowable as far as I can see re universal credit).

My concern is that whilst the DRO is probably the best option out if the formal 3, DRO, Bankruptcy & IVA. Will the intermediary or OR see the business setup costs as a grey area or running down funds to fall within DRO criteria? The business, a photography business is genuinely something I think would give me the creative freedom and income from that I could sustain with my ADHD and Autism, compared with working for an employer where I would struggle.

I have scoured the internet and even in great detail the governments website for an answer to this question and cannot see anything that could come close to an answer or potential mention of similar situation.

Is it a case of do it and see what happens? Worst case is the DRO is declined and I can appeal.

Any help on clarity with this would be greatly appreciated.