Reply To: Capital issues


The only question you have to ask is: what is the claimants intention by repaying the debt?

If the intention is to reduce the capital in order to obtain some or more HB then the deprivation rules apply.

If the claimant or partner is over 60 repayment of any debt cannot be counted as deprivation regardless of intention.

If there is a debt, and you are satisfied that the debt exisits and it is reasonable for the claiment to repay this now they have funds available (and repayment is not a convenient way of disposing of capital to gain benefit) then there is no depriviation. It could be the case that unless they make their repayment now there is no realistic possiblity of them ever being in the position to do so in the future.

I would suggest you obtain whatever paperwork there is concerning the terms of the loans and conditions for repayment. If they are verbal agreements then considering the amounts invovled it may be advisable to ask for statements from the parties concerned to establish what was the original expectation for the repayment of the loan. Once repayment is made I would ask to see bank statements showing the new level of capital and something to confirm receipt of payment against the loan.