Reasons for Bankruptcy/DRO to be refused??

elfieb

Im currently waiting for a DRO order to go through, and stressing myself out in the process!

Does anyone know of any criteria that creditors could use so that a DRO or bankruptcy would be refused?

Im terrified that my order wont be accepted

fiveyearplan

If you are going for a DRO then you had to go through an intermediary like the CAB. Did they give you any cause for concern? How long until you find out. DROs are still very new so I don't really know all the ins and outs. Maybe Debt Doctor will be along to alleviate your worries.

Godiva500

I'm in the same boat - nervewracking isn't it...... Just got to brave it out Good Luck xx

fermi

It is not up to creditors to say yes/no.

In a DRO an approved intermediary checks and submits it, and then the Insolvency Service finalises it.

In bankruptcy it is up to the courts/judge. But if you have taken professional advice that is usually a formality as well.

elfieb

Im on pins 24/7!

I think its the fact that on the application, it states loud and clear that if your application is refused you will not receive a refund on your £90, but it doesnt give any examples as to why it could be refused.

If you are out there DD, maybe you could shed some light???

debt_doctor

Hi all,

I agree the waiting must be nailbiting, unlike the certainty of BR, where you know straight away at the court.

To be 'refused' would be some form of glaring error such as you are a homeowner or clearly have surplus income above £50 pm. This should be very unlikely if you provided the correct information and your intermediary carried out their role correctly.

A DRO could be 'revoked' after being accepted for many reasons, such as creditor objection that you have more than £300 assets, or a pension fund is discovered or if you financial position improves within a year.

It is this uncertainty that I object to, you either have a DRO or not, but sadly that is not the case.

DD

fiveyearplan

I agree DD, a DRO shouldn't have so many uncertainties. It almost makes a mockery of the system.

debt_doctor

I know. The DRO was introduced for those with little income and assets who could not aford the BR deposit, that I like.

Instead of creating an entire new system, why didnt they just leave BR as BR but if you have no assets and income below the IPA limit ( ie nothing for the insolvency service to do) then it costs £100.

Acceptance if your insolvent, no revoke possible, and local advert removed in all cases ( including BR, creditors can check the gazzette or IS website)

DD

fiveyearplan

debt_doctor wrote: »

Acceptance if your insolvent, no revoke possible, and local advert removed in all cases ( including BR, creditors can check the gazzette or IS website)

DD

They can and do check the IS website and London Gazette. Halifax sweep through it everyday. I wonder if that person has job satisfaction?

tomterm8

I think they do it electronically, rather than by e.g. reading it.

Personally, I think the DRO is meaningless... if it includes a private pension, anyone who has ever had a job and been responsible is excluded.

fermi

tomterm8 wrote: »

if it includes a private pension, anyone who has ever had a job and been responsible is excluded.

That was the issue that I found was beyond belief.

The same provisions regarding approved pension schemes that exclude them from bankruptcy should have applied to DROs as well.

DROs are proving to be more ill thought out than even I anticipated. They will help a few, but will miss their intended (supposedly) mark.:rolleyes: