Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Most (but not all) IP's follow the procedure used in bankruptcy. Compensation for pain and suffering is allowed to be retained whilst compensation for loss of earnings is not. IP's not following this will treat the whole claim as a windfall and take all of it if the payout exceeds £500.
If the compensation is something like replacing like for like, they will usually allow you to use the funds for the replacement, depending on what it is and the values involved.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014 http://foggy.blogs.iva.co.uk