DRO PPI Claim

phantomraspberry

I have just received a letter from HSBC. I have over £3000 coming to my bank account in PPI claim repayment.
Great, but...
I am in a DRO till the moneterium period ends in October. THe Letter from HSBC states that they will inform the insolvency service.
Will the insolvency service take all the claim?
(baring in mind my debts with HSBC were all paid off and HSBC are not listed as creditors in my DRO)
I think i will prepare myself for the bad news...

debt_doctor

Hi,

The DRO unit will not take your monies from the PPI claim but they will revoke your DRO so it will allow your creditors to persue the debts once again.

DD

phantomraspberry

I think this may be a worse outcome than them taking the £3000 claim outright.
I'm 3 months away from completing the DRO Moneterium period and I have to go back to square 1 again, proving that as a single mummy with over £13,000 debts accumulated during my relationship with my ex (all in my name unfortunately) I now have to start the cycle of being unable to afford to pay them again.
must not panic....
HELP!

debt_doctor

Yes, I know its not a good situation.

You cannot have another DRO for 6 years, but you could;

make token / pro rata offers to your creditors.

or

Perhaps use some of the money for essentials around the home / children and use £525 - £700 of the PPI for a bankruptcy fee. Any surplus monies would be claimed by the OR.

DD

phantomraspberry

i'm absolutely gutted. 12 weeks away from the end of my DRO and I could have it revoked because the bank wrote to me offering me money that was owed to me, and thinking stupidly that would lose out if i didn't reply, i signed the form and posted the stupid letter. How naive?!!!!
I cant get my head around either being able to pay off my debts or go bankrupt.
I felt so proud that i'd organised an got on top of my money situation.

o well. tomorrow its back to sleepless nights and back to the drawing board and off to the CAB by the looks of it toddler in tow.

if anyone out there has any other advice please please help us! x

fatbelly

Firstly, it's a lesson to others. Don't accept or pursue a ppi reclaim during the moratorium, as there's a good chance your dro will be revoked.

In circumstances where the debtor receives an asset, for example, backdated benefit, PPI refund, a windfall or any other property valued at more than £300 during the moratorium period, the Official Receiver is automatically exercising her discretion not to revoke for all cases so long as the debtor is open and honest and the value of the asset in question is less than £700.

For all lump sums received between £700 and £1750, each case is assessed on its own merits taking into consideration numerous factors, including but not limited to liabilities, health, personal circumstances, age, etc. and a decision will be made on an individual basis as to whether it would be appropriate to revoke or not.

For lump sum payments in excess of £1750, it is more likely that a DRO may be revoked, although any mitigating factors would be included in our determination.

Just noticed the Official Receiver is female.

Anyway, before jumping into another debt 'solution' wait and see who writes to you. I'd give it 6 months. Some debts may have been written off by the owner and some may have been sold to a third party (for a very small amount). If you can hold on to that 3k, a 'full & final settlement' solution may be possible.

If it goes pear shaped go for bankruptcy.

But 'full and final' and insolvency do not sit well together. So I'd suggest waiting until it is clear which solution fits best.

phantomraspberry

Do you suggest that i don't reply to the HSBC offer letter to 'buy time'?
It was sent as with previous correspondence to my parents address and was received yesterday. I could 'return to sender - addressee has gone away'
If i don't reply they don't have details of a bank account to pay the moneys in to.
The insolvency service would (i presume) have been made aware though?

phantomraspberry

shall i just sit tight until the insolvency service contacts me?

fatbelly

phantomraspberry wrote: »

I have just received a letter from HSBC. I have over £3000 coming to my bank account in PPI claim repayment.

phantomraspberry wrote: »

Do you suggest that i don't reply to the HSBC offer letter to 'buy time'?
It was sent as with previous correspondence to my parents address and was received yesterday. I could 'return to sender - addressee has gone away'
If i don't reply they don't have details of a bank account to pay the moneys in to.
The insolvency service would (i presume) have been made aware though?

I think I would just sit on the letter. I thought this was a 'done deal'

phantomraspberry wrote: »

shall i just sit tight until the insolvency service contacts me?

Definitely.

phantomraspberry

Thank You. I'll do just that...

fatbelly

Unfortunately this is now a 'quantified asset' so it is probably not good news...

I still think the DRO will be revoked - don't know what the others think.