DRO and redundancy

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Yannerd87
Yannerd87 Posts: 20 Forumite
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in IVA & DRO
Quick question...im halfway through my DRO..and i may get made redundant within the next 4 months.ive worked out i would get about £1600 redundancy pay but this would be used to pay my rent and bills for a couple of months.is this going to revoke the DRO?this is worst case scenario as there are options for redeployment etc.advice please.

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  • National_Debtline
    National_Debtline Posts: 7,998 Organisation Representative
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    Hi Yannerd87,


    If you were made redundant then you would have to report this to the insolvency service and discuss the amount you have received from the redundancy. Unfortunately, as it is for more than £1000 it is quite possible the DRO will be revoked and the debts can return.


    You may be able to discuss with the insolvency service about needing this money to pay on going rent, bills and essentials. You can also discuss with them if you need this money for any essential household repairs (such as a replacing a broken fridge, cooker etc.). But it will be at their discretion whether or not to allow the DRO to continue. They will take the whole situation into account and, if your DRO is revoked you could consider using some of the redundancy money to pay to bankruptcy instead.


    Laura
    @natdebtline
    We work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps
  • fatbelly
    fatbelly Posts: 20,492 Forumite
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    I've just been notified that the figures have been tweaked for this ;

    •If property worth more than £1,000 is received during the moratorium the order might not be revoked if it is reported as soon as possible and is worth less than 50% of the total debts scheduled.
    •Where the amount received is between £1,000 and £1,990 (up from £1,850) the DRO Team will consider a number of factors including the client’s health, age, liabilities etc. and may agree not to revoke the DRO.
    •Where the amount received is more than £1,990 (up from £1,850) the DRO is much more likely to be revoked but this is still a discretionary decision and will depend on the facts of the case

    Hope that helps
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