Debt payment

Jon7777777

Hi All I currently recieve uc and lwaca, pip, housing benefit in the next 2 months I will be inheriting, so I will be above the £16000 limit, I understand I won't loose my pip, but I would loose uc etc , but myself has also got dept, so by using my inherited money to pay off my depts that would then take me to below £16000, my question is would this be classed as deprivation of capital, paying off credit cards etc, as I think that is prob the the thing a person would normally do thank u

Kimi87

Payment of debts is generally not considered deprevation of capital for UC.

Jon7777777

https://forum.scope.org.uk/discussion/comment/1071920#Comment_1071920

Thank you very much, so how would I go about it, when my grant of probate comes threw do I declare firstly am over 16.000 then state my depts to pay off, or pay them off first then state change of savings, for example I had £ 4000 I now have £14000 thank u

Kimi87

If you can pay off your debts within the same Assessment Period as receiving the money, no reporting would be needed unless you are left with over £6k.

Jon7777777

https://forum.scope.org.uk/discussion/comment/1071938#Comment_1071938

OK thank you, so if it's over 6k I declare and benefits are deducted by savings

Kimi87

If you are left with over £6k after paying off your debts, there will be a deduction of £4.35 for every £250 over £6k, or part thereof.

You may also be asked to attend the Jobcentre with paper copies of bank statements. They may then ask about the debt repayment.

Jon7777777

https://forum.scope.org.uk/discussion/comment/1071957#Comment_1071957

OK I understand, thank u very much