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    • Mra199
    • By Mra199 11th Feb 17, 12:58 PM
    • 21Posts
    • 6Thanks
    Mra199
    DRO questions
    • #1
    • 11th Feb 17, 12:58 PM
    DRO questions 11th Feb 17 at 12:58 PM
    Hello!

    I need help. I am currently in the process of sorting my debts out. I have a lot of creditors, 16/17 in total. Just under £13000 outstanding consisting of catalogues, payday loans unsecured loans and telecom. None of this was intentional and happened for unfortunate serious reasons. I am currently living with my partner and our baby under 1. My partner works full time but no contract and his shifts vary so does his pay. I am currently unemployed after mat leave and will be returning in August. At first we were advised a DMP which will take 10+ years to clear. That was as a joint budget. Going off my own share of the bills and my income (which is only benefit related) I have been advised a DRO. Looking at the criteria it seems I do qualify however there are a few things I'm unsure about and would really appreciate anyone's helps before I go through with the app. Creditor preferences? I am not sure what this means, there are outstanding balance I haven't even been able to make minimum payments to whatsoever and there is a doorstep lender I have which I haven't missed a payment for. Is this a preference? Also there is a very recent payday loan which I took because my partner was laid off at work and we had no income, he was to return to work the end of that month but then laid off again so hasn't been one payment made? Is this intentional debt and can I be refused for these reasons? I would really appreciate any advice!
Page 1
    • sourcrates
    • By sourcrates 11th Feb 17, 11:56 PM
    • 12,419 Posts
    • 11,819 Thanks
    sourcrates
    • #2
    • 11th Feb 17, 11:56 PM
    • #2
    • 11th Feb 17, 11:56 PM
    Hi,

    You really need to stop paying all your unsecured debt, if you continue to pay one and not another, that is preferential treatment, and they can go back two years to check this.

    So in order to qualify, you need to be able to say that you have not shown preference to any individual creditor, when asked on the form.

    Another thing, if you go back to work halfway through a DRO and your income increases and your outgoings don't, your DRO could fail, you need to be on the same budget for the full 12 months really.

    Info here :

    http://www.i-m-a.org.uk/wp-content/uploads/2013/03/Preferences-and-Antecedent-Transactions-Guidance.doc

    You really need to talk this through with an intermediary such as stepchange.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
    Bankruptcy And Living With It, boards. "I volunteer to help get your forum questions answered and keep the forum running smoothly".
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.

    For free debt advice, contact either : Stepchange, National Debtline, or, CAB.
    For Legal advice see : http://legalbeagles.info/
    • Mra199
    • By Mra199 12th Feb 17, 9:08 AM
    • 21 Posts
    • 6 Thanks
    Mra199
    • #3
    • 12th Feb 17, 9:08 AM
    • #3
    • 12th Feb 17, 9:08 AM
    Hi

    Thanks for your response.
    I have now stopped paying all creditors (just recently) I only continued to pay beyond my means as it is a door step lender and there was lots of pressure. I am still worried this will be seen as a preference however.

    With regards to going back to work I have checked and although my income will increase and take me above the £50 surplus, my childcare cost will outweigh this and bring me back down so hopefully I'm sure that will be okay. Thank you for your advice, I appreciate it!
    • sourcrates
    • By sourcrates 12th Feb 17, 2:49 PM
    • 12,419 Posts
    • 11,819 Thanks
    sourcrates
    • #4
    • 12th Feb 17, 2:49 PM
    • #4
    • 12th Feb 17, 2:49 PM
    Hi

    Thanks for your response.
    I have now stopped paying all creditors (just recently) I only continued to pay beyond my means as it is a door step lender and there was lots of pressure. I am still worried this will be seen as a preference however.

    With regards to going back to work I have checked and although my income will increase and take me above the £50 surplus, my childcare cost will outweigh this and bring me back down so hopefully I'm sure that will be okay. Thank you for your advice, I appreciate it!
    Originally posted by Mra199
    Once it's all approved, you are not checked up on, or asked to provide any more details about anything.

    Talk to an intermediary, make sure your happy with everything, then basically what they write down on the application, is taken as fact, the insolvency service will check up on anything that's not clear, or that they need further info on, but normally, what's on the application, is taken as been the current situation.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
    Bankruptcy And Living With It, boards. "I volunteer to help get your forum questions answered and keep the forum running smoothly".
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.

    For free debt advice, contact either : Stepchange, National Debtline, or, CAB.
    For Legal advice see : http://legalbeagles.info/
    • Mra199
    • By Mra199 12th Feb 17, 3:39 PM
    • 21 Posts
    • 6 Thanks
    Mra199
    • #5
    • 12th Feb 17, 3:39 PM
    • #5
    • 12th Feb 17, 3:39 PM
    I see, that's understandable thank you.
    I am currently waiting for my application pack from StepChange, so when that comes I'll talk to them too. Thank you for your help!
    • Mra199
    • By Mra199 28th Feb 17, 7:48 AM
    • 21 Posts
    • 6 Thanks
    Mra199
    • #6
    • 28th Feb 17, 7:48 AM
    • #6
    • 28th Feb 17, 7:48 AM
    Hello.

    Please help!
    I'm so worried.

    I have now submitted my application to the insolvency (yesterday evening) and was advised by step change to wait 3 months due to preferential payments. ( me paying the door step lender contractual payments and no payment to any other lender) and the fact that I took out small credit in early January.
    They said this is a high risk and I could be rejected.

    Obviously I opted to not wait and take the risk as the pressure of people at my door constantly is too much. I was also worried about lots more interest being accrued in that waiting period.

    I'm so worried now that I might be rejected. They also informed me that the water arrears plus council tax arrears can be re billed to my partner as he lives at the same address. Is this likely?

    Sorry for all the questions. I just find this site and the forums so much more helpful and I appreciate any advice.
    • sourcrates
    • By sourcrates 28th Feb 17, 11:10 AM
    • 12,419 Posts
    • 11,819 Thanks
    sourcrates
    • #7
    • 28th Feb 17, 11:10 AM
    • #7
    • 28th Feb 17, 11:10 AM
    Argh, I did tell you before about the preferential treatment clause.

    If it's rejected you can't apply again for 6 years.

    Usually what the intermediary says is correct, they know what there talking about, I understand the reluctance to wait, but nothing would happen in three months.

    I hope you get a positive outcome, but if you don't, there are other options.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
    Bankruptcy And Living With It, boards. "I volunteer to help get your forum questions answered and keep the forum running smoothly".
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.

    For free debt advice, contact either : Stepchange, National Debtline, or, CAB.
    For Legal advice see : http://legalbeagles.info/
    • Mra199
    • By Mra199 28th Feb 17, 11:33 AM
    • 21 Posts
    • 6 Thanks
    Mra199
    • #8
    • 28th Feb 17, 11:33 AM
    • #8
    • 28th Feb 17, 11:33 AM
    Oh no. Maybe I've made the wrong decision and should have waited.

    Thank you for your response. It's appreciated.
    I will post the outcome..
    • fatbelly
    • By fatbelly 28th Feb 17, 9:27 PM
    • 11,516 Posts
    • 8,648 Thanks
    fatbelly
    • #9
    • 28th Feb 17, 9:27 PM
    • #9
    • 28th Feb 17, 9:27 PM
    Hi

    This has almost certainly been done on the 'new' system, which seems to have more of a delay to it than the old one, at least at present.

    So don't be concerned if you hear nothing for 3, 4 or 5 days.

    I agree, generally, that it's not a good idea to press an intermediary to do something they're advising against. They are not allowed to refuse to submit an application but can make comments when they submit it, and may feel that they have to 'cover' themselves.

    Anyway, what's done is done and of course I understand that you wanted relief from your debts. That's what the DRO is for - the name gives it away.

    My best guess is that I doubt the DRO team will view your behaviour as a serious misdemeanour.

    On the joint debts, it is usual that liability moves to the other party, and this will certainly happen with the council tax. Water is a bit more complex and some water authorities will close the account and open a new one with zero balance in joint names. You'll have to wait to see what they do.
    • Mra199
    • By Mra199 1st Mar 17, 7:46 AM
    • 21 Posts
    • 6 Thanks
    Mra199
    Thank you for that I wasn't aware of a new system so that helps ease my mind as I havent heard and I have checked the register.. I'm not there.

    Yes I agree I think they did cover themselves as they sent an email along with the application explaining why, how and when I made preferential payments.

    Definitely wanted relief, I have a baby under 1 who's been trapped in the house with me trying to keep him quiet when the door step lender knocks on. I had to do that growing up with my parents and it wasn't nice. I don't want him to have that life and I just for minexpensive and his sake it's best to send the application now and of it does get rejected I can hopefully move on to next solution as fast as possible. Rather than waiting 3 whole months. I know some people say nothing can happen but I have told the door step lender I can't make a single payment and I'm currently seeking help yet he still persistsome to knock on and ring.

    With the council tax and United utilities the bills are solely in my name. Does that mean they can still make my partner liable for those?

    Thanks for your help!
    • Mra199
    • By Mra199 1st Mar 17, 7:49 AM
    • 21 Posts
    • 6 Thanks
    Mra199
    Please try and make sense of my horrendous 'autocorrected' spelling. Smartphones and I don't really get along
    • fatbelly
    • By fatbelly 1st Mar 17, 8:25 AM
    • 11,516 Posts
    • 8,648 Thanks
    fatbelly

    With the council tax and United utilities the bills are solely in my name. Does that mean they can still make my partner liable for those?

    Thanks for your help!
    Originally posted by Mra199
    Potentially, yes. It does make it less likely that the water bill will go over to him.

    But did that council tax bill that you have put into your DRO relate to a period when he was living with you at that property?

    Were you getting a single adult discount at that time?
    • Mra199
    • By Mra199 1st Mar 17, 8:44 AM
    • 21 Posts
    • 6 Thanks
    Mra199
    Ahh I see. Thank you.
    Yes the bill is from when I was receiving single adult discount but it also covers some of the period from when he started living here.
    • fatbelly
    • By fatbelly 1st Mar 17, 6:53 PM
    • 11,516 Posts
    • 8,648 Thanks
    fatbelly
    Yes the bill is from when I was receiving single adult discount but it also covers some of the period from when he started living here.
    Originally posted by Mra199
    I would expect those two bits to be entirely different account numbers.

    The first one is your debt and should be covered by the DRO. The second one will become his liability
    • Mra199
    • By Mra199 1st Mar 17, 7:22 PM
    • 21 Posts
    • 6 Thanks
    Mra199
    No strangely it's all one account number. And even though I've informed them I'm no longer living alone his name has never been put onto the bill. I just presumed that was because we aren't married.. I'm not sure? Should they make him liable for the amounts owed when he did live here that's fine as it was only a few weeks arrears. I obviously just had to state this as all debts/arrears were to be included on the dro application.

    Thanks for that, hopefully it works out that way.. roll on the next few days to find out my decision...
    • fatbelly
    • By fatbelly 1st Mar 17, 7:39 PM
    • 11,516 Posts
    • 8,648 Thanks
    fatbelly
    No strangely it's all one account number. And even though I've informed them I'm no longer living alone his name has never been put onto the bill. I just presumed that was because we aren't married.. I'm not sure? Should they make him liable for the amounts owed when he did live here that's fine as it was only a few weeks arrears. I obviously just had to state this as all debts/arrears were to be included on the dro application.

    Thanks for that, hopefully it works out that way.. roll on the next few days to find out my decision...
    Originally posted by Mra199
    Sounds odd. Is there some reason why he isn't counted as a liable adult? (checks list):

    •severely mentally impaired
    •18 year old for whom child benefit is payable
    •students, student nurses, Youth Training Scheme (YTS) and apprentices; school leavers starting a course of education in the next term
    •patients living in long term residential care homes or hospital
    •some residential care workers receiving less than £36 per week
    •residents of hostels for the homeless or night shelters (if not self-contained accommodation)
    •members and dependants of international defence organisations
    •members of religious communities
    •some people who provide care to another person (other than spouse, partner or child under 18)
    •non British spouses of students
    •persons with diplomatic privileges or immunities
    • Mra199
    • By Mra199 1st Mar 17, 8:41 PM
    • 21 Posts
    • 6 Thanks
    Mra199
    Nope he fits none of those reasons, he doesn't claim any benefit either he works full time. He's definitely included in the bill as since I informed them, I no longer receive single occupier discount. I've just never seen his name stated on any of the bills!
    • Mra199
    • By Mra199 4th Mar 17, 7:03 AM
    • 21 Posts
    • 6 Thanks
    Mra199
    Hi,

    I've just checked the register this morning and I'm on there! So relieved.

    I understand now the creditors have 30 days to reject the order. I'm sure that I read on the DRO forum on here that they can reject if credit was used in the past 3 months, is this correct?
    • fatbelly
    • By fatbelly 4th Mar 17, 7:33 AM
    • 11,516 Posts
    • 8,648 Thanks
    fatbelly
    Hi,

    I've just checked the register this morning and I'm on there! So relieved.

    I understand now the creditors have 30 days to reject the order. I'm sure that I read on the DRO forum on here that they can reject if credit was used in the past 3 months, is this correct?
    Originally posted by Mra199
    Well done - that should mean the DRO was approved yesterday.

    Yes, the creditors will now have their notice of your DRO and they are supposed to raise any objections within 28 days.

    Creditors have no power to reject a DRO - they are now as bound by the rules of the moratorium as you are.

    Their objection must be a reason why you do not meet the criteria for a DRO (that's a quick summary of the rules) so I don't think you have anything to worry about. There's no 3-month rule that I'm aware of.
    • Mra199
    • By Mra199 4th Mar 17, 8:58 AM
    • 21 Posts
    • 6 Thanks
    Mra199
    Thank you, that puts my mind at rest. Makes much more sense! I appreciate your help
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