Debt Relief Orders (DRO) - Information & help thread

fatbelly

snowey87 wrote: »

Hi, I have decided that a DRO is my best option but am unsure on how i do the statement of affairs. I am doing it through payplan and they have said i need to put my partners info on the soa.
What exactly do i need to put on there? We both work but it is only me entering a DRO but if i put it all as a joint income it is coming out as having more than the £50 surplus?
Thanks in advance.

Her income is not taken into account as such, but they need to be able to allocate the expenditure when you live as a couple, and a 50/50 split may not be accurate unless you earn the same. Best be open with them and let them work it out.

Billy12345

Just a quick query if anyone can assist. My wife's DRO moratorium period comes to an end in August and everything has gone smoothly.

However, our car was involved in a crash yesterday, someone drove into it whilst it was parked up, no injuries or anything however the vehicle may be written off. I am the registered keeper and owner of the vehicle but she is the policy holder on the insurance.

If they decide its not economical to repair and pay out they will probably make this payment to her, even though the car is registered to me. The insurance policy is in her name to keep her no claims discount running and it was accepted even though she is not the registered owner of the vehicle. I have a small banger to get me to and from work and she needed something better to take the kids to school so both cars are in my name but the insurance is in her name as main policyholder.

If they pay out will this make any difference to her DRO ? I'm guessing any payment may be a few thousand pounds which we would use to buy another car anyway.

If anyone can help that would be great.

sourcrates

Billy12345 wrote: »

Just a quick query if anyone can assist. My wife's DRO moratorium period comes to an end in August and everything has gone smoothly.

However, our car was involved in a crash yesterday, someone drove into it whilst it was parked up, no injuries or anything however the vehicle may be written off. I am the registered keeper and owner of the vehicle but she is the policy holder on the insurance.

If they decide its not economical to repair and pay out they will probably make this payment to her, even though the car is registered to me. The insurance policy is in her name to keep her no claims discount running and it was accepted even though she is not the registered owner of the vehicle. I have a small banger to get me to and from work and she needed something better to take the kids to school so both cars are in my name but the insurance is in her name as main policyholder.

If they pay out will this make any difference to her DRO ? I'm guessing any payment may be a few thousand pounds which we would use to buy another car anyway.

If anyone can help that would be great.

It could be a problem yes, if it’s paid out to her, before the end of the monotorium period, and it exceeds £1650 then the DRO may be revoked.

I would contact the insurance company and try to persuade them to pay it to you, rather than her, no harm in telling them why, or, if they won’t entertain that, payment is sometimes made by cheque, you could just hang on to it, and bank it after August, of course Sod’s law says they’ll pay by bacs !!

See what Fatbelly suggests.

Billy12345

sourcrates wrote: »

It could be a problem yes, if it’s paid out to her, before the end of the monotorium period, and it exceeds £1650 then the DRO may be revoked.

I would contact the insurance company and try to persuade them to pay it to you, rather than her, no harm in telling them why, or, if they won’t entertain that, payment is sometimes made by cheque, you could just hang on to it, and bank it after August, of course Sod’s law says they’ll pay by bacs !!

See what Fatbelly suggests.

Thanks Sourcrates, that's a real bummer. If they paid by bacs it would go into my bank anyway as I pay the insurance from my account, she doesn't have anything going into her account. A cheque would be paid into our joint account anyway.


How would the DRO be revoked, would I need to inform anyone or would the insolvency service be notified by the insurers ?


Hopefully Fatbelly can assist too

sourcrates

You are not monitored, any changes must be notified by the debtor.

Billy12345

sourcrates wrote: »

You are not monitored, any changes must be notified by the debtor.

Sorry Sourcrates is my wife the debtor ?

fatbelly

Hi. Yes Sourcrates is (nearly) correct on all points. The maximum lump sum limit in the moratorium is now £1990. If she (the debtor) receives a lump sum during the moratorium she should declare it.

Although the situation here is complex I doubt the DRO team would allow the DRO to complete if a larger sum than this came into her control during the moratorium.

While it remains unquantified it is not a problem.

Bcfc171081

Quick question this. I have two cars both under 1k in value but prob over 1k together would that mean I don’t qualify. We decently need two cars I work at 2am do no public transport and my wife needs a car for the children to school etc. Could I put one in her name or would that look dodgy.

fatbelly

Bcfc171081 wrote: »

Quick question this. I have two cars both under 1k in value but prob over 1k together would that mean I don’t qualify.

Not necessarily. One car would be covered by the vehicle exemption. The other would just count as an 'asset'. As long as your other assets (savings etc) did not take your assets over £1000 you would still qualify

Chezney19

Hi
I am currently weighing up my options and speaking to advisor - they advise me of doing a DRO - my concern is 1) my car I use isn’t owned by me (have letter proof) but need this due to living in rural area and have 4yr old 2) need for work

Other worry I have is ... I lost my job March final pay was end of March and I have contact all debt people to inform of my situation, I am not entitled to benefits due to partner earnings, I also am self employed (sole trader) as set up ironing from home business 3yrs ago when little one was baby to earn some money ... I cut this more than half (clients done) when employed April 2018.... now unemployed and only doing ironing I’m literally getting £10-40 per week some weeks nothing !

If I go for a DRO is this going to effect my self employment? Do I actually need to them advisor I’m self employed? As some clients pay me cash. Also do I loose my bank accounts?

I’ve had a lovely visit from HCE guy this week right when trying to leave for school run, it’s a debt which I actually spoke to the client about back in Oct 2016 , I informed them that I hadn’t worked since 2012 (which I hadn’t) that I had a baby and my situation wasn’t going to be changing in near future (stay at home mum) I made them an offer of £5pm ... they never replied back to my email ... 3yrs later and this guys at the door, I’ve had no contact from the clients no paperwork and he said instructed to take my car which informed him isn’t mine, that I’m unemployed, finally got rid of him for him to then follow me to my child’s school!!!

I have been speaking directly to the clients claiming by email , they said the offer back in 2016 wasn’t good enough , my argument is the fact they didn’t bother to reply to me or make any contact since! I’ve informed him that I am currently getting debt help and still sorting this out but it will take 16days for this to be processed etc (not mentioned DRO)

He has instructed HCE to hold account but only given me until weds ! I’ve said this isn’t long enough for me to sort something out. I’ve sent back expenditures form to them.

What does anyone suggest I do ? I haven’t stopped worrying, I should be classed as vulnerable due to having child and unemployment but he isn’t interested, I even informed him (bailiff) that I’ve been updating everyone else every 30days with an update on my situation and they hold my account , obviously once I find work then happy to set payment plan, but right now my ironing money helps buy food shop or my fuel / insurance, my partner is paying for rent bills everything else and we are -£ as it is.

I’m just not sure if DRO is best for me or administration order due to self employed?
Plus want to keep bank accounts.

Feeling so stressed with it all