Dro statistics

debt_doctor

immoral_angeluk wrote: »

Hmm.. I was told that they were by the AI at my bureau so will have to mention it to him (I'm his assistant, not an AI myself).
Thanks.

Hello Imm, I was hoping you would see that as obviously it's important. This is from the Intermediary guidnce notes.......


[FONT=Arial, sans-serif]As in bankruptcy there are some debts that the debtor will remain liable for and are not capable of being scheduled within a DRO application. The debts that are non-qualifying as far as DRO purposes are concerned comprise the following:[/FONT]

• [FONT=Arial, sans-serif]Court fines and any other obligations arising from an order made in family proceedings or under a maintenance assessment made under the Child Support Act 1991. [/FONT]

• [FONT=Arial, sans-serif]Student loans cannot be included under a DRO. They remain the responsibility of the debtor to repay within the terms of the loan agreement.[/FONT]

• [FONT=Arial, sans-serif]any obligation arising under a confiscation order made under section 1 of the Drug Trafficking Offences Act 1986 or section 1 of the Criminal Justice (Scotland) Act 1987 or section 71 of the Criminal Justice Act 1988 or under Parts 2, 3 or 4 of the Proceeds of Crime Act 2002.[/FONT]

• [FONT=Arial, sans-serif]The rights of [/FONT][FONT=Arial, sans-serif]Secured Creditors [/FONT][FONT=Arial, sans-serif]to deal with their security are unaffected by the making of a Debt Relief Order. However, it should be noted that if a debtor owns secured property it is unlikely that they would qualify for a Debt Relief Order, as their gross assets are likely to exceed £300.[/FONT]
• [FONT=Arial, sans-serif]The debtor must be clearly instructed to include [/FONT][FONT=Arial, sans-serif]all [/FONT][FONT=Arial, sans-serif]debts[/FONT][FONT=Arial, sans-serif] that they owe, on the application form, including any rent or utilities arrears. [/FONT]
  [FONT=Arial, sans-serif]A debtor must not have total liabilities in excess of £15,000. This total includes any secured debts but does not include un-liquidated sums or other excluded debts. It should also include any interest or charges added to the amount owed.[/FONT]

I know of course that you made it very clear in your post that any debtor would still be responsible for the payment of student loans. Student loans are placed in to the application but then the 'excluded debt' box is checked and this prevents them being counted towards the 15k limit.

Thanks,

DD

dojoman

immoral_angeluk wrote: »

Hmm.. I was told that they were by the AI at my bureau so will have to mention it to him (I'm his assistant, not an AI myself).
Thanks.

Pardon my ignorance but what is an AI?

JCS1

dojoman wrote: »

Pardon my ignorance but what is an AI?

Approved Intermediary (I think!)

Or if you're a farmers daughter like me, the AI man is who you call when you don't have a bull on the farm and have a cow that you want to get in calf

immoral_angeluk

debt_doctor wrote: »

Hello Imm, I was hoping you would see that as obviously it's important. This is from the Intermediary guidnce notes.......


[FONT=Arial, sans-serif]As in bankruptcy there are some debts that the debtor will remain liable for and are not capable of being scheduled within a DRO application. The debts that are non-qualifying as far as DRO purposes are concerned comprise the following:[/FONT]

• [FONT=Arial, sans-serif]Court fines and any other obligations arising from an order made in family proceedings or under a maintenance assessment made under the Child Support Act 1991. [/FONT]

• [FONT=Arial, sans-serif]Student loans cannot be included under a DRO. They remain the responsibility of the debtor to repay within the terms of the loan agreement.[/FONT]

• [FONT=Arial, sans-serif]any obligation arising under a confiscation order made under section 1 of the Drug Trafficking Offences Act 1986 or section 1 of the Criminal Justice (Scotland) Act 1987 or section 71 of the Criminal Justice Act 1988 or under Parts 2, 3 or 4 of the Proceeds of Crime Act 2002.[/FONT]

• [FONT=Arial, sans-serif]The rights of [/FONT][FONT=Arial, sans-serif]Secured Creditors [/FONT][FONT=Arial, sans-serif]to deal with their security are unaffected by the making of a Debt Relief Order. However, it should be noted that if a debtor owns secured property it is unlikely that they would qualify for a Debt Relief Order, as their gross assets are likely to exceed £300.[/FONT]
• [FONT=Arial, sans-serif]The debtor must be clearly instructed to include [/FONT][FONT=Arial, sans-serif]all [/FONT][FONT=Arial, sans-serif]debts[/FONT][FONT=Arial, sans-serif] that they owe, on the application form, including any rent or utilities arrears. [/FONT]
  [FONT=Arial, sans-serif]A debtor must not have total liabilities in excess of £15,000. This total includes any secured debts but does not include un-liquidated sums or other excluded debts. It should also include any interest or charges added to the amount owed.[/FONT]

I know of course that you made it very clear in your post that any debtor would still be responsible for the payment of student loans. Student loans are placed in to the application but then the 'excluded debt' box is checked and this prevents them being counted towards the 15k limit.

Thanks,

DD

Thanks for that DD, I've only been as far as the adding included creditors screen on the DRO application when training, but it was down on the list of creditors to add to the application but I didn't realise there was a section on the application for excluded debts as you say. Unfortunately before I got to that stage the system crashed and haven't had the opportunity to do once since! Will have to discuss it with the AI though... as fairly sure last time I discussed s.loans with them they said they were included in the total but obviously the client remained liable after so need to make sure it wasn't either a misunderstanding or that there's been some confusion somewhere.
aaah the joys of being an assistant.. :rotfl:
Cheers

immoral_angeluk

JCS1 wrote: »

Approved Intermediary (I think!)

Or if you're a farmers daughter like me, the AI man is who you call when you don't have a bull on the farm and have a cow that you want to get in calf

Yes it's approved intermediary.. sorry I'm so used to talking in acronyms from doing the job I do... :rotfl:

Leigh73

debt_doctor wrote: »

Student loans are an EXCLUDED debt and do NOT form part of the 15k limit.

DD

Hiya DD,

Thank You so much for making my day!

So, you're 100% my £12k of student loans will not stop my DRO from going through?

Also, my Council Tax arrears (liability order gained by Council) - will these be included in DRO / written off after 12 months?

I also have (gulp) about £2.5k of Housing Benefit Overpayments - this is currently being taken from my Housing Benefit at source by the Council, and I can't afford to keep this up!

I read somewhere online, that I wouldn't be able to include the HB Overpayment, in the DRO, IF there was evidence of fraud / an interview under caution at the Council ( there was :-/ ). That was in 2006 when I got done.

While I wish I was in a position, where I could pay this back, due to my not workng at present, due to anxiety, depression, and alcoholism, I am panicking a bit, as I'll never pay this overpayment off :-(

To make matters worse, I owe the DWP, about an extra £600 in Crisis Loans, and again, they are about to deduct repayments fortnightly - about £15 - sounds very little, but I already have to make up the shortfall in rent (£10 a fortnight) out of my ESA - this is due to, as I said previously, the Council taking £5 a week from my HB payments.

Yikes.

What a mess.

All of this money wasted, which I can't afford to pay back, due to an addiction to alcohol.

I'm getting help for this now through AA, and counselling.

Am starting volunteering this next week, at a homeless centre, to try and turn it all into a positive and help other people.

Seeing the CAB in 3 weeks.

To Debt Doctor - any advice regarding the above, would be most appreciated.

Many Thanks,

Leigh.

fermi

Student Loans are an "excluded" debt.

http://www.i-m-a.org.uk/pdfs/intermediary-guidance.pdf

Please note that excluded debts will not count towards the overall total of unsecured liabilities.

debt_doctor

Leigh73 wrote: »

Hiya DD,

Thank You so much for making my day!

So, you're 100% my £12k of student loans will not stop my DRO from going through? 100% yes.

Also, my Council Tax arrears (liability order gained by Council) - will these be included in DRO / written off after 12 months? You would not have to make any payment towards this debt in a DRO at any time.

I also have (gulp) about £2.5k of Housing Benefit Overpayments - this is currently being taken from my Housing Benefit at source by the Council, and I can't afford to keep this up! The balance at the end of the DRO would be written off but they could continue to take payments from your benefit within the year, that must not cause you 'hardship'.

I read somewhere online, that I wouldn't be able to include the HB Overpayment, in the DRO, IF there was evidence of fraud / an interview under caution at the Council ( there was :-/ ). That was in 2006 when I got done. No debts incurred through fraud are written off under a DRO, however there is a specific test to assertain whether the overpayment counts as fraud; 1) You admitted fraud under caution. 2) You agreed to pay a financial penalty under the 1992 social security administration act or 3)You were succesfully prosecuted for fraud through the courts.

While I wish I was in a position, where I could pay this back, due to my not workng at present, due to anxiety, depression, and alcoholism, I am panicking a bit, as I'll never pay this overpayment off :-(

To make matters worse, I owe the DWP, about an extra £600 in Crisis Loans, and again, they are about to deduct repayments fortnightly - about £15 - sounds very little, but I already have to make up the shortfall in rent (£10 a fortnight) out of my ESA - this is due to, as I said previously, the Council taking £5 a week from my HB payments. As above. I suggest you go to see a welfare rights specialist within CAB, law centre or local council to look at the overall benefit situation.

Yikes.

What a mess.

All of this money wasted, which I can't afford to pay back, due to an addiction to alcohol.

I'm getting help for this now through AA, and counselling. Good for you, excellent !

Am starting volunteering this next week, at a homeless centre, to try and turn it all into a positive and help other people. I think that is a fantastic idea, thats why I turned to the CAB after my BR. Best thing I ever did.

Seeing the CAB in 3 weeks.

To Debt Doctor - any advice regarding the above, would be most appreciated.

Many Thanks,

Leigh.

Hope that helps,

DD

hunts42

Leigh73 wrote: »

Am starting volunteering this next week, at a homeless centre, to try and turn it all into a positive and help other people.

Good for you! You may be in a pickle now but it seems that you've got a great attitude and are doing something to help yourself on a number of fronts, here's hoping all goes well from here on.

Leigh73

Thank You so much for this DD.

Gutted about the Housing Benefit Overpayment info though, as I did admit fraud (what was I thinking?) :-/ and I did pay a financial penalty

I even wrote to the Council explaining I can not afford to repay this, asking if they would consider writing it off.

They obviously declined.

I admit I did wrong. I take full responsibility for what I did.

I would, however, like to move on with my life asap, and the debts are exacerbating my anxiety / depression (and the same WAS the case for my drinking) et al.. in a viciously cyclical fashion..

"This too shall pass"

I have a CAB appt early May.

Thanks again DD. You are a star! Enjoy the sunshine