Debt Relief Orders (DRO) - Information & help thread

Orville

I won't argue with you on this as I maybe wrong. Can you provide me with a link to information where this is the case as i would fail to see what it would have to do with the OR..?

National_Debtline

Hello there,

A preferential payment would usually prohibit or revoke a DRO. I don't think the OR would be able to recover the payment. Here's some guidance about how the Insolvency Service approaches such payments:

http://www.i-m-a.org.uk/wp-content/uploads/2013/07/Preferences-and-Antecedent-Transactions-Guidance.pdf

Best wishes,

David @ NDL.

fatbelly

Orville Wright!

On the original question, for a DRO, preferential payments are those made with the intention of putting a creditor in a better position than they would have been, in the two years prior to applying for a DRO.

wba31

Flyright wrote: »

It is correct advice. The OR will seek to recover the money from the friends.

In a DRO the OR will not recover monies paid to friends

Just like the OR wont force someone with a car worth more than £1000 to sell it

Just like the OR wont take any asset received and distribute funds.

They just revoke the order.

wba31

speedy46 wrote: »

Hi,
I'm new to this site but have found alot of my questions have been answered from these topics. I have a question regarding my sharesave with my employement. I'm currently in debt of £13700 on loans and credit cards; plus a further £9000 from burrowing from friends. I'm at the stage where i can't sleep and need to get this resolved as soon as i can.
I'm considering DRO for my loans/cards debt and want to use my employement sharesave to pay off friends. I have £8000 on my sharesave which finishes its 3 year plan next month but would like to clear the majority of my debt asap. Would i be able to cash in the savings to pay off friends and at the same time apply for DRO for my unsecuried debts? Would they rather have me pay off the unsecuried debts with my savings first.
I was thining of not mentioning my sharesave in my DRO application but i'm sure they'll find out. Do they check my payslips or contact my employment?

Strictly speaking you are not currently eligible for a DRO as your debt is £22700 (debts to friends/family count) AND you have an asset for more than £300.

What's your friend expecting with the debt? do they know the remainder of the situation?

I would advise that you use the £8000 and split it pro-rata between all your debts (including debt to friend) and put the remainder of debt into the DRO.

If your friend is prepared to the write the debt off for nothing, use the £8000 to make full and final settlement offers on the debts, if they dont go with it - pro rata offers to all and DRO.

If you applied for the DRO without declaring the sharesave there is a good change it will be found out, and if a DRO is revoked you may not be able to apply for another for 6 years.

To be honest with you, the best way to proceed is to be completely honest about your situation with an advisor from a free debt advice provider (CAB, Step Change or National Debtline). Although you may have other ideas for the £8000, being honest enables the advisor to give you fully accurate advice for you to become debt free

Skylark1_2

Hi,

I am looking to apply for a dro with just over 10k of debt. Could anyone tell me what happens if it is revoked before a year is up and is it something that happens often?

Thanks x

fatbelly

It happens very very rarely. I think I'm in the high 200s now for my applications. I've had one revoked.

If it happens you are usually notified of an 'intention to revoke' then, when it happens, your intermediary and your creditors are all notified. Then you're back to where you were except that the option of another DRO is not open to you (only one per six years).

wba31

Skylark1 wrote: »

Hi,

I am looking to apply for a dro with just over 10k of debt. Could anyone tell me what happens if it is revoked before a year is up and is it something that happens often?

Thanks x

To piggyback on what Fatbelly has rightfully said, they do not revoke an order for the fun of it, there has to be something that leaves the individual ineligible for the DRO.

most revocations i have seen we had an idea would happen - we even get some where we are fully prepared for it to be revoked and the DRO Unit decide it's fine to continue...

fatbelly

wba31 wrote: »

- we even get some where we are fully prepared for it to be revoked and the DRO Unit decide it's fine to continue...

Yes, I've had a few of those.

Gordie1975

Can someone advise me with a few question i have with the debt order i intend to do when i am sure i qualify.

I have done a credit report with equifax and there are 2 totals, one delinquent balance" and one "current balance" for all my debts, which one is the correct amount i owe?, as the difference is only a few hundred pounds but one total is below 15k and the other is above it.

Also i am currently in a DMP, and budgeted £40 gas a £40 elec, now 8 months later i have discovered that i was underpaying, and so have a deficit of probably £300, will this need to be included in the DRO, or can i simply not mention it and pay a bit extra every month, i dont think power bills show on a credit report.

Also, i need to re-do my budget, like i said my power bills were way out, but so also was my food bill, and a few other things that i initially guessed at.

You see, the reason i am worried is because i dont really want to phone up step change to re-do my DMP as, if i do, they will realise i am way wore off that i initially said i was, so will be unable to afford the DMP, and then my creditors may start adding interest on, meaning i would definately be above the 15k.

Its annoying, as the only reason i didnt do a dro lat year was because i was over the 15k, now due to paying the dmp, i may be under, but i dont want it to look like suddenly because i want a DRO, my expenses have gone up.

Any adive would be great.:)