DRO advice

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I've been managing for years with my debts that i have and always managed to pay them until now where times have hit too hard for me and my partner and i'm finding it virtually impossible to live. due to a few factors, namely my partner losing his job so now i pay all the bills, and working tax credit reduced to half and an extortianate water bill. Now the car needs a repair and there's no possible chance that we can manage. we even have family buying us food so we can eat.

I rang cccs and i was all on tract to be granted a dro, and fell under every category to be able to apply for one until we get back on our feet. Then they asked the question if i've ever paid into a pension which i remembered i had done 10 years ago for a couple of years in a work scheme but have no track of it. Even though i can't access it at all its still classed as an 'asset' even though in their rules my car worth £500 is not classed as an asset and can freely keep. on that basis i was told i can't apply but can do for bancruptcy which seems so severe for just £5000 of debt.

even making token payments to the debtors will not make it viable for us to live by atm.

So now i'm back to square 1......

I'd totally forgotten about this pension until the question was asked and wish i hadn't jogged my memory about it, and if it wasn't for that I could be ok by now. I'm quite tempted to go through a different debt helpline to apply for a dro and forget the pension from years ago. i know its wrong but times are desperate and i'm thinking desperate measures before i lose everything.

Comments

  • lataniakn
    lataniakn Posts: 33 Forumite
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    does anyone know if they're able to tell if i have an old pension?
  • CCCS_Alan
    CCCS_Alan Posts: 282 Organisation Representative
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    lataniakn wrote: »
    I've been managing for years with my debts that i have and always managed to pay them until now where times have hit too hard for me and my partner and i'm finding it virtually impossible to live. due to a few factors, namely my partner losing his job so now i pay all the bills, and working tax credit reduced to half and an extortianate water bill. Now the car needs a repair and there's no possible chance that we can manage. we even have family buying us food so we can eat.

    I rang cccs and i was all on tract to be granted a dro, and fell under every category to be able to apply for one until we get back on our feet. Then they asked the question if i've ever paid into a pension which i remembered i had done 10 years ago for a couple of years in a work scheme but have no track of it. Even though i can't access it at all its still classed as an 'asset' even though in their rules my car worth £500 is not classed as an asset and can freely keep. on that basis i was told i can't apply but can do for bancruptcy which seems so severe for just £5000 of debt.

    even making token payments to the debtors will not make it viable for us to live by atm.

    So now i'm back to square 1......

    I'd totally forgotten about this pension until the question was asked and wish i hadn't jogged my memory about it, and if it wasn't for that I could be ok by now. I'm quite tempted to go through a different debt helpline to apply for a dro and forget the pension from years ago. i know its wrong but times are desperate and i'm thinking desperate measures before i lose everything.

    Hi Lataniakn

    Sorry to hear about your situation.

    You would be taking a big risk not declaring an old pension as you could be seen as giving false representation of your circumstances. This in turn could lead to the DRO been revoked and the offence could lead to a fine or a more severe punishment.

    I can understand you are in a desperate situation but taking such a risk may not be worth it. For the moment don’t give up hope that things will improve and try to stick to token £1 payments for the moment and fingers crossed once things improve repayment of the debts over a reasonable timescale could be a viable option.

    Regards

    CCCS_Alan
    I am a Debt Counsellor that works for the CCCS and have specific permission from Martin, to post on these boards to try and help those in debt. Read more information on the CCCS and what it does in the Debt Problems: What to do and where to get help article.

    CCCS is a registered charity, and there is no charge whatsoever for any of the services we provide to our clients. We take great pride in offering first class help and advice, but we only offer this where we have been able to fully explore and understand your circumstances with you. We want to help you understand these choices and their possible implications but not make them for you.
  • lataniakn
    lataniakn Posts: 33 Forumite
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    i'm not a cheater so i know in my heart i shouldn't anyway and you're only saying what i probably know. i've not heard of this token 1 thing though, i'll look into that. thanks.

    It seems so daft that they class a pension as an asset, totally inaccessible for another 26 years, yet if i was 65 and drawing it, it wouldn't be an issue and they dont class it as an asset :p *shrugs*
  • JCS1
    JCS1 Posts: 5,292 Forumite
    Photogenic Name Dropper First Anniversary First Post
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    Strange thing is, 99.9% of pensions are exempt from bankruptcy, just not from a DRO.
  • lataniakn
    lataniakn Posts: 33 Forumite
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    backwards isn't it :/
  • dancingfairy
    dancingfairy Posts: 9,069 Forumite
    edited 12 June 2009 at 8:28PM
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    Hi. I would get in touch with your creditors and offer them what you can afford - even if it's just 1 pound a month each for now (as CCCS Alan said) , explain your situation and ask them to stop interest and charges for now until your situation improves. Note this is after you have paid the essential bills - and that includes eating properly, rent, water,electric, council tax etc.
    Hopefully it is just a temporary problem and your partner will find a job soon and you can increase your payments to the creditors then and if it is just a temporary problem you will have avoided a DRO as well.
    Good Luck and I hope things begin to improve for you.
    df
    Making my money go further with MSE :j
    How much can I save in 2012 challenge
    75/1200 :eek:
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