Transfer of assets in Debt Relief Orders

masj78

My partner has bad debts from a previous partner, which are less than 15k. She isn't currently in work and we receive tax credits and child allowance. I am the sole earner of our income. We are not currently married.
She has savings currently of about £1500, so doesn't meet the requirements for a DRO. If however she transfered these assets to myself, would she then be able to apply for a DRO or would this be breaking the law and seen as an abuse?

elfieb

Plenty of ways you could try and get round this........eg she could say she owed you the money, and was simply paying you back, but the implications could be fair and wide.

The main issue with a DRO is that the creditors have right to appeal which is its major flaw in my eyes. If they found out about this transfer of money, they could appeal, and your DRO could be revoked and then you are back to square 1.

I would suggest seeking advice from one of the debt charities. Bear in mind though, that in my own experience, they are not that all together "clued up" on DRO's at the moment, and they do like to fob you off with a statement such as "its new legislation, so we dont really know"!

CCCS_Matthew

masj78 wrote: »

My partner has bad debts from a previous partner, which are less than 15k. She isn't currently in work and we receive tax credits and child allowance. I am the sole earner of our income. We are not currently married.
She has savings currently of about £1500, so doesn't meet the requirements for a DRO. If however she transfered these assets to myself, would she then be able to apply for a DRO or would this be breaking the law and seen as an abuse?

This isn't something I would suggest, although it's not breaking the law as such it's likely that once the OR established that the money had been transferred to yourself prior to the DRO application the DRO would be revoked and as a result the £90 fee would be lost.

Regards,
Matthew.

elfieb

CCCS_Matthew wrote: »

This isn't something I would suggest, although it's not breaking the law as such it's likely that once the OR established that the money had been transferred to yourself prior to the DRO application the DRO would be revoked and as a result the £90 fee would be lost.

Regards,
Matthew.

Apologies for taking this thread off topic, but what is the time scale for a DRO to be revoked, can in be done at any stage during the 12 months?
I understand that if circumstances change, it will be revoked, but Im thinking more of creitors appealing and in turn the DRO revoked?

Chris1001

I would check this out with a CAB or someone similar first, but my reaction (as a debt adviser with a CAB and someone who is a DRO intermediary) is to pay the £1500 pro rata of course to the creditors (having paid for the DRO first of course). She would then have no assets and could apply for a DRO.