Debt Relief Orders (DRO) - Information & help thread

elfieb

ViolentDelights wrote: »

Hi Guys,

Quick question. If a DRO is revoked as a result of surplus income increasing above £50 (i.e. getting off benefits and into work), would you still be registered as insolvent? Or would this also be revoked?

Also, the £50 cap - is this only applicabe during the 12 month discharge period or must the income not go above it for the entire 6 years?

Go above the £50 surplus anytime during the 12 month period, and the DRO will be cancelled, your debts active again, and therefore you are not classed as insolvent under the criteria of a DRO.

You only have to maintain a surplus under £50 for the 12 months inwhich the order is active. The 6 years you mention is just the length of time a DRO will show on your credit file.

ViolentDelights_2

Thanks elfieb.

I'm hoping to get back into work asap, meaning that I wouldn't be eligibile for the DRO anymore. I explained this to the lady in the CAB and she sort of advised me that it didn't matter and that I should hide increased earnings from the insolveny service. What are peoples thoughts on this? Is this generally done or is it highly illegal?

philnicandamy

I certainly wouldnt reccomend hiding anything from the IS....they can & will find out eventually & give you a pretty hard time about it

elfieb

ViolentDelights wrote: »

Thanks elfieb.

I'm hoping to get back into work asap, meaning that I wouldn't be eligibile for the DRO anymore. I explained this to the lady in the CAB and she sort of advised me that it didn't matter and that I should hide increased earnings from the insolveny service. What are peoples thoughts on this? Is this generally done or is it highly illegal?

Generally speaking the IS WILL find out. They can and will liase with Tax, National Insurance etc.
Your surplus goes above £50, DRO revoked, you loose your £90 fee, and you are back to square 1 regarding your debts.
If you feel you will be unable to meet the strict £50 surplus requirments, you really should be looking at other options eg DMP

CAB should not be advising you to be dishonest (I should know I'm a CAB Volunteer caseworker!!):o

Christmas_

Hi,

I turn 25 a week tomorrow and I'm halfway through the first 12 months of my DRO. I also have a serious heart problem and I'm unable to work for the time being (hence the DRO) and so the incapacity benefit that I receive is increasing by approx £15 a week. Obviously this takes me to roughly £60 a month more on my budget.

I've written a letter to the insolvency service that states this and enclosed the letter from the DWP as proof and I sent it on Friday.

I've also explained that my housekeeping has risen by approx £15 over the month (£3 a week) to cover food etc rises and so has my travel so I now have £10 a week to cover a tenner taxi fare (averages out for each journey at about £5 there and £5 back) for the hospital, doctors and the supermarket x2 (once a fortnight) as without taxi fare I wouldn't be able to manage the journey (especially not the one to the hospital) Before I had to cut out the appropriate money from my food budget and go without some food and just pray that I never needed an emergency run to the hospital as I did not have any excess full stop.

Do I need to do anything else or forward the letter onto anyone else, like the CCCS who helped me in the first place?

Thanks

elfieb

Christmas_ wrote: »

Hi,

I turn 25 a week tomorrow and I'm halfway through the first 12 months of my DRO. I also have a serious heart problem and I'm unable to work for the time being (hence the DRO) and so the incapacity benefit that I receive is increasing by approx £15 a week. Obviously this takes me to roughly £60 a month more on my budget.

I've written a letter to the insolvency service that states this and enclosed the letter from the DWP as proof and I sent it on Friday.

I've also explained that my housekeeping has risen by approx £15 over the month (£3 a week) to cover food etc rises and so has my travel so I now have £10 a week to cover a tenner taxi fare (averages out for each journey at about £5 there and £5 back) for the hospital, doctors and the supermarket x2 (once a fortnight) as without taxi fare I wouldn't be able to manage the journey (especially not the one to the hospital) Before I had to cut out the appropriate money from my food budget and go without some food and just pray that I never needed an emergency run to the hospital as I did not have any excess full stop.

Do I need to do anything else or forward the letter onto anyone else, like the CCCS who helped me in the first place?

Thanks

You dont need to contact CCCS regarding this matter. YOu only need to contact the IS.
Effectively CCCS's work is over, once the DRO has been granted.
You should however feel free to contact them regarding any advice that you require

debrag

oh so any changes its the IS you contact, thanks

Christmas_

Thanks very much

stephy110288

Hi, I haven't had chance to read through all the posts on this bit, but wondered if anyone had any advice on this. DRO is the perfect solution for me, and I fit all the criteria. when it came to applying with CCCS they asked me if I had a pension. Turned out that because I paid into a company pension two years ago, and the transfer value is more than £250, I'm not allowed a DRO. I can't do anything with my pension until i'm 60 odd (i'm 21 now), I have written to the company i worked for explaining the situation and pretty much begging them to bend the rules and either release it, or just put it back into the company. It's only about 1000, and would save me £12,000 in debt so really not bothered what happens to it. but they dont even want to know and wont help me. does anyone know any way i could get around this? right now i'm payin 185 a month to a debt management plan, my debt is around 12,000 and i just feel like it will never be paid and i want a DRO
thanks

fatbelly

Hi Stephy

The CAB made a representation to government about this and the result was published yesterday. I'll try to find it and post it here later.

The result was that the relevant minister agrees that there is a problem and that the rule needs looking at but that it will not be disregarded completely, so not falling into line with bankruptcy.

How come that you say you fit all the criteria for a DRO but you can afford £185 per month to a dmp?