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I have an appointment to attend court on Wednesday of next week to finally go bankrupt after having debts totaling £21,000. I have received a letter today from the DWP that my PIP application has been granted at the enhanced rate of the daily living component (A bit of good news at least) and they are backdating my claim and paying £3700 into my account tomorrow. With the money I am going to clear my rent arrears (to safeguard my house) and council tax (the last remaining BIG player in my debts). Will the insolvency service take the rest to pay off my creditors with it being a large amount? or will they leave it as it is a benefit payment?

 

I am asking because I would REALLY like to finally own my own fridge/freezer (having cold milk would be a blessing) and purchase some new clothes (lived out of charity shops for 4 years) and having the cupboards full would be nice. I am not going to squander the money but I am frightened that they are going to take it all.

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Hi Icey,

 

 

You must report the backdated payment to the IS, however I think it is likely that you will be allowed to purchase essential items and I believe a fridge/freezer and clothing definitely fall in to the category of essentials.

Any Letters I Draft are N0T approved by CAG and no personal liability is accepted.

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Nemo Mortalium Omnibus Horis Sapit: Animo et Fide:

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Thankyou! The IS would know anyway as I dont go to court until Wednesday. I shall go and order myself a new fridge! No more bottles in the sink to keep cool! :)

Good Luck!!

Any Letters I Draft are N0T approved by CAG and no personal liability is accepted.

Please Consider making a donation to keep this site running!

Nemo Mortalium Omnibus Horis Sapit: Animo et Fide:

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