preferential payment on the DRO

SamuelJ_3

Okay, I've decided to go ahead with the DRO, and I'm currently in the process of selling my car to replace it with a cheap motorbike worth under £1000. That part I'm sorting out..

At first I thought I owe'd just 7000 to companys, but my mother quickly reminded me that I owe her about 5000 as she's been paying my bills for me for a while and has paid my car insuance for 2 years etc.

since I've been in negative income, shes been giving me the money to pay my creditors but I've been left with no money to give to her per month, doesnt this mean I've shown some preference in my debt somehow? (maybe I'm just getting really worried about me actually getting the DRO or not)

from the sale of my car, I'll still have a lump sum of money left over after getting the bike and essential gear (making sure the bikes under 1000 and the gear is under 300) that lump sum will obviously go pro-rota between my debtors including my mother, so at least she'd get some of the money back, she'll be abit bitter that she's not going to see the whole 5000 back though..

I think I did read somewhere that money paid to friends and family can have a greater slice in the pro-rota but perhaps I'm imagining things? I'd really like to be able to give my family back as much of the debt as I can since they've put their finances on the line to help me.

SamuelJ_3

Another question too, when they value your car/bike what valuation do the base it on, I know its the parkers price guide, but a lot of bikes I've been looking at straddle over the 1k mark, valued at say.. 1100 dealer, but only 800 private good.. how would they look at that? is there any lenience or does it have be well under the 1k mark?

I'm getting very worried about this DRO now!

DarkConvict

money paid to friends and family can have a greater slice in the pro-rota but perhaps I'm imagining things

Imagining things i believe. Pro-rata is about giving a fair share to all your unsecured creditors, this includes family and friends.

As to the bike/car etc. There would be some leniency, as everyone values things differently also there is the cost of selling and downsizing, it would not be worth it for £200. However if the bike was worth £2000 you would be hard pressed to keep it. The best advice on these matters, come from who is running your DRO.

SamuelJ_3

I thought I was imagining it! I think that was to do with pro-rota payments when its not concerned with DRO's or something, It was mentioned in the national debt line book

As long as its round about £1000 I guess I'll be okay then, like you say, as long as its ridiculously large and if I buy it for less than £1000 and have a receipt of the sale.

I worry too much! this whole process is giving my daily anxiety attacks, I've thrown up twice with the stress of it, just talking on the phone about it makes me ill sometimes

I suppose that's my comeuppance!