Debt relief order query

stress.head11

Hi all,

I'm after some advice if anyone has some going spare!
Basically, I am just £90 away from my dro application being processed. I've done all the paperwork etc, given balances and have signed everything. The only thing left now is to pay the fee and cross my fingers it gets approved.

Before I started the dro application, I attempted to claim back ppi from a credit card. It was refused and I didn't pursue as I wanted to continue with the dro and was worried that a refund of any amount might scupper my chances of the dro being approved. With me so far?

Today, I called the debt charity to give final balances and just go through my application. All good. Then the postman came...

Basically, contrary to the letter I had from the credit card company, a refund has been issued and my cc account is now £500 in credit. I called the cc people and they said they will transfer the money to my bank account.

Now, I know I cannot have assets over £300 to do a dro, and by the time I've paid my phone bill (landline) and paid back a family member, it will bring me just under £300. Do I tell the debt charity about this ppi refund?

Also, I have a mobile phone contract which is 1 month in arrears. This has been included in the dro application even though I didn't ask for it to be. I'm not sure if I should cancel the contract altogether and add the final amount outstanding to the dro (about 6 months) or ask for it to be removed from the application and continue paying it as normal every month...will my application be refused if I have a phone contract?

I'm so confused by the whole process of if I have to include everything and if I don't, will I get into trouble etc. I'm already worried sick about threatening letters from creditors even though I have been paying token payments for the last few months when I had to stop my dmp due to a significant decrease in income...

Any advice would be gratefully received!

stress.head11

Anyone....

JCS1

Might be better to post on the DRO/IVA board here:

http://forums.moneysavingexpert.com/forumdisplay.php?f=159

And be careful paying back family members, you might create a preference payment

[Deleted User]

What a headbanger, your better of disclosing everything your not sure of to your intermediary before any fee is paid - they will have had similar queries before I bet, it won't go against you

My understanding PPI is it can be very icy - wonder if you could split it evenly before paying £90 fee between all creditors so there is no unfairness to at least bring owed figures down? as you've already been making token payments - can't emphaise enough proper advice really needs to be sought

My experience was as soon as the DRO confirmed, the creditors disappeared - I was told they could still send statements only had the 1 debt collector get in touch so far and they honestly gave up as quickly as they started

Put all your creditors through in the DRO and start afresh x

wba31

stress.head11 wrote: »

Hi all,

I'm after some advice if anyone has some going spare!
Basically, I am just £90 away from my dro application being processed. I've done all the paperwork etc, given balances and have signed everything. The only thing left now is to pay the fee and cross my fingers it gets approved.

Before I started the dro application, I attempted to claim back ppi from a credit card. It was refused and I didn't pursue as I wanted to continue with the dro and was worried that a refund of any amount might scupper my chances of the dro being approved. With me so far?

Today, I called the debt charity to give final balances and just go through my application. All good. Then the postman came...

Basically, contrary to the letter I had from the credit card company, a refund has been issued and my cc account is now £500 in credit. I called the cc people and they said they will transfer the money to my bank account.

Now, I know I cannot have assets over £300 to do a dro, and by the time I've paid my phone bill (landline) and paid back a family member, it will bring me just under £300. Do I tell the debt charity about this ppi refund?

Also, I have a mobile phone contract which is 1 month in arrears. This has been included in the dro application even though I didn't ask for it to be. I'm not sure if I should cancel the contract altogether and add the final amount outstanding to the dro (about 6 months) or ask for it to be removed from the application and continue paying it as normal every month...will my application be refused if I have a phone contract?

I'm so confused by the whole process of if I have to include everything and if I don't, will I get into trouble etc. I'm already worried sick about threatening letters from creditors even though I have been paying token payments for the last few months when I had to stop my dmp due to a significant decrease in income...

Any advice would be gratefully received!

You must tell the debt charity, if you do not declare this and the IS they may find out and revoke the order.
you can have up to £300 as an asset, you are right in that, so £200 of what you have is potentially problematic. I would advise against paying off family members for debts to them, this is preferential payments and can cause the DRO to be revoked - although i had one approved last week in spite of this - but there are random rulings on random cases so it's a risk to advise based on case history.
Paying your phone bill for regular monthly usage is fine, if you want to keep the mobile going same with that. any other essential household expenditure can also be met, replacement of any household goods, microwave, hoover, anything like that on it's last legs is also fine - just keep receipts!

failing that, make a pro-rata payment between all of your creditors and you're good to go...

stress.head11

Thanks for replies!
I called my debt charity this morning and its all sorted. Basically, she said I can keep £300, use £90 for the dro fee and then split the rest equally between my creditors. She even worked out exactly how much to pay each one too.
I asked about my phone contract and she's taken that off the application and said I can keep that.
I'm so relieved now everything is much clearer! Just need to get to the post office now, pay the fee and hope all gets approved!
Thanks again for your help!