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Savings and money you owe

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11 years 2 weeks ago - 11 years 2 weeks ago #120718 by BANDBOLTON
Savings and money you owe was created by BANDBOLTON
Hello,

I have a client who received Incapacity Benefits up until 2011 and then transitioned to ESA.

He does not spend a lot of money and so his IB/ESA piled up in his bank. This amount has gone over the £6000 income threshold and has been so for a while.

He has just paid his father (with whom he lives) a considerable sum of money for rent/bills for the past 3 years or so. He made that payment in March.

He has since received a letter from a Compliance Officer at the jobcentre asking him to attend an interview. He is fraught with worry that they will see he had more than the income threshold and has had visions of his being arrested and locked up.

I have managed to assure him arrest and jail are not on the cards. However I had to confess that I wasn't sure about where he stood. Common sense says that any amount of money you owe somebody else does not count as yours but I'm not sure on the legality.He would only have his fathers word.

Any advice you could give would be most welcome!
Last edit: 11 years 2 weeks ago by slugsta.

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11 years 2 weeks ago #120721 by slugsta
Replied by slugsta on topic Savings and money you owe
Hi BB,

I believe the DWP stance is that any debts that must be paid immediately are OK, but they might query why your client decided to pay his father at that particular time.

Nothing on this board constitutes legal advice - always consult a professional about specific problems
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11 years 2 weeks ago - 11 years 2 weeks ago #120728 by Gordon
Replied by Gordon on topic Savings and money you owe
BANDBOLTON

Just to add, there may also be issues with the payment being to his father, they may need to show that there is a formal arrangement between them in regard the rent and bills, this also has implications if either of them is receiving Housing Benefit.

If you cannot provide the advice then I would recommend that they speak an advisor with experience in this area.

Gordon

Nothing on this board constitutes legal advice - always consult a professional about specific problems
Last edit: 11 years 2 weeks ago by Gordon.
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