DRO application

E.L.James

I am applying for a DRO. My total debts are less than £15000 and its mostly made up of credit card and overdrafts defaults. I am also behind with council tax since the council tax benefit has been scrapped. They are now demanding the entire rest of the year.

Can I include all the rest of the years council tax bills?

What about utilities bills, they are threatening to cut me off and fit prepay meters then add on the debt to the meters. If I can get the DRO through ASAP, can I avoid getting cut off? Would I be best to switch to another provider then when I have the debt relived?

debt_doctor

E.L.James wrote: »

I am applying for a DRO. My total debts are less than £15000 and its mostly made up of credit card and overdrafts defaults. I am also behind with council tax since the council tax benefit has been scrapped. They are now demanding the entire rest of the year.

Can I include all the rest of the years council tax bills?

What about utilities bills, they are threatening to cut me off and fit prepay meters then add on the debt to the meters. If I can get the DRO through ASAP, can I avoid getting cut off? Would I be best to switch to another provider then when I have the debt relived?

Hi, Whilst there have been some changes to council tax benefit (it being given to local authorities to process) it has not been scrapped, so you need to check the position with the council and make a claim if you are eligible. Council tax debts can go in to a DRO including the current year if you have received a final demand or liability order.
With fuel debts, they wont cut you off but will fit pre pay meters. These debts will always go in to a DRO, if the pre pay meters get fitted then the DRO will cancel the debts placed on the meter.
Potentially you could move suppliers after your DRO, but would probably have to wait until the DRO has ended (1 year) as the actual write off occurs at that point.

DD

E.L.James

debt_doctor wrote: »

Hi, Whilst there have been some changes to council tax benefit (it being given to local authorities to process) it has not been scrapped, so you need to check the position with the council and make a claim if you are eligible. Council tax debts can go in to a DRO including the current year if you have received a final demand or liability order.
With fuel debts, they wont cut you off but will fit pre pay meters. These debts will always go in to a DRO, if the pre pay meters get fitted then the DRO will cancel the debts placed on the meter.
Potentially you could move suppliers after your DRO, but would probably have to wait until the DRO has ended (1 year) as the actual write off occurs at that point.

DD

Is it not automatic? Maybe I have to apply for help with my council tax benefit? I hope I can get the rest of the year included in my DRO so I can start paying it from next April.

debt_doctor

Very few benefits are automatic, you need to apply.

If you receive a final notice or a liability order from the council for this current year then the whole of the year up to end of March 2014 will be included in your DRO.

DD

E.L.James

If I wait until after April for the DRO, then stop paying it, could I get the entire next year council tax included?

caz2003uk

No it only includes current debts! So what you owe, you need to be paying your current years bills when applying for a Dro because next years bill won't be a debt yet! The liability for council tax will cease t the date of your Dro but you will be liable from the date after your Dro

I know this from personal experience

debt_doctor

caz2003uk wrote: »

The liability for council tax will cease t the date of your Dro but you will be liable from the date after your Dro

........only true if you have not been given a final demand or liability order for the year in question. If you get a final notice / liability order for the current year then your future instalments are part of your insolvency, with a new bill issued the following April as normal.

DD