Capital

I have an ongoing case with an issue of capital. Tenant received money when her father died but did not declare it. This took her well over the capital limit. Money was cashed in at a cheque centre and the cash has been spent. Only some of the spending has been proved, but ongoing IS still refused as capital still deemed to be over capital limit. Still working on this aspect.

In meantime there have been sizeable overpayments, but I think they are classed as claimant error and nothing to suggest fraud. She now has some other debt so I may refer for money advice. As she has virtually no income she could apply for bankruptcy (will need to check out any complications with the money she has had).

However if made bankrupt could I then argue she cannot have capital over limit? Any case law ? (This is a Scottish case but any ruling on the IS aspect would be helpful).

I am going on leave, but perhaps someone could mull it over and I will tackle it when I come back.

Many thanks