Debt Relief Orders (DRO) - Information & help thread

Pattie94

Sorry for bothering you further.
I had gone through the whole topic 😳 And as I can see, personal injury payout used to be classed as an assest, has anything changed now? I am really worried that it may revoke the dro.

fatbelly

The latest guidance phrases it differently to my previous post but the effect is the same

Personal injury claims not payable before the DRO is approved and relating solely to general damages are not treated as assets. They, therefore, do not need to be disclosed in the application but if the award is subsequently used to make a large purchase during the moratorium period, rather than on living expenses, the DRO may be revoked on the basis that the applicant’s assets exceed £1,000.

An award made before the DRO is approved is treated as an asset. You are asking about one received during the moratorium.

Pattie94

Yes it is going to be received during or after the moratorium period, we don't know when as already its been 2 years.

Pattie94

I just spoke to my bank Nationwide and apprently they will freeze my account once I have DRO even though I have no debts with them but probably because it is flexplus account and I pay £10 a month. Do you think I should switch my account now before DRO? And if the dro is approved in the meantime will the switch go through?

Don't know when my dro will be in place as CAB advisor still collects all the evidence at the moment so may be few weeks. I am also waiting for my tax credit renewal which will be done on 1st August so I am not sure if I should wait with dro until then?🤔 Also I had recent purchase on argos card and have been adviced to return the goods(they haven't been even delivered at that time) but once the return and refund will be processed in will take a few days, also I think it won't show straightaway on Experian that the balance is £0, do you think I need to wait until my credit report gets uptaded too?

Pattie94

I just spoke to my bank Nationwide and apprently they will freeze my account once I have DRO even though I have no debts with them but probably because it is flexplus account and I pay £10 a month. Do you think I should switch my account now before DRO? And if the dro is approved in the meantime will the switch go through?

Don't know when my dro will be in place as CAB advisor still collects all the evidence at the moment so may be few weeks. I am also waiting for my tax credit renewal which will be done on 1st August so I am not sure if I should wait with dro until then?🤔 Also I had recent purchase on argos card and have been adviced to return the goods(they haven't been even delivered at that time) but once the return and refund will be processed in will take a few days, also I think it won't show straightaway on Experian that the balance is £0, do you think I need to wait until my credit report gets uptaded too?

Pattie94

Always got lots of questions when the CAB is closed ��

fatbelly

Pattie94 wrote: »

I just spoke to my bank Nationwide and apprently they will freeze my account once I have DRO even though I have no debts with them

I've never met this. Did they say how they will find out?

What is your bank account? is not one of the questions on the application.

I know that Nat West routinely trawl the insolvency register to see if their clients are insolvent, and downgrade their accounts, which seems like an unnecessary and expensive waste of time for them. But AFAIK the other banks don't do this.

Pattie94

Have no idea, though they get notification or something? Or could be only because I phoned them.

sourcrates

Pattie94 wrote: »

Have no idea, though they get notification or something? Or could be only because I phoned them.

Not a problem, just open a new basic bank account.

No credit checks, open to everyone.

fatbelly

Pattie94 wrote: »

Have no idea, though they get notification or something? Or could be only because I phoned them.

Sounds like someone talking off the top of their head

sourcrates wrote: »

Not a problem, just open a new basic bank account.

No credit checks, open to everyone.

Yep, no problems in getting a new bank account. If overdrawn, all the more reason to walk away and add it to the DRO.

Just avoid Nat West