'buy now pay later' goods and DRO

inneedofsomehelp

Hi everyone. Got my final app with CAB on Thursday about a DRO ive just spoken to an advisor but they couldn't help in answering the question so i hope someone here can.

I have a littlewoods account and used it last year for 'buy now pay later' goods. Its only when digging my statement out for the CAB ive realised this could be an issue.

So what do i do about this?

1. Do i contact littlewoods and tell them due to loosing my job and having to take a much less well paid job i cant pay and will they take the goods back?

2. Do i try and sell the goods and pay the what i get for it? but this is treating creditors with preference isnt it?

3. if the interest free period ends in September (12 months interest free) what do i put on the DRO forms for the balance? do i put the balance as it stands today or do i add the interest to the amount as i know they can chase me for anything that is outstanding ie i say i owe £800 but at the point of DRO its actually £830 i know i am liable for the £30, so would i need to declare the interest that would kick in later in the year?

FiatFan_2

If DRO's are as much like an IVA then you should be able to keep the goods and put in the current value of the debt, i.e. £800. Personally I wouldn't mention it to Littlewoods when/if you advise them your going into a DRO. We had "buy now, pay later" with very before our IVA and we kept the Dyson and the value original value got included.

HTH

wba31

Fiatfan is correct, the BNPL balance needs to be added to the total current balance of the account and it all gets included in the DRO. Unfortunately if this takes you over £15000 you cannot elect to leave these out.

inneedofsomehelp

ok, so to be 100% clear on this
original price £500 - if paid off before october 2013
price inc interest if after october 2013 £800

I just put the £500?

Thanks everyone

wba31

inneedofsomehelp wrote: »

ok, so to be 100% clear on this
original price £500 - if paid off before october 2013
price inc interest if after october 2013 £800

I just put the £500?

Thanks everyone

no, £800, because the debt will not be cleared before October. If the DRO is approved the debt is not cleared for 12 months, you are just protected from further action and not allowed to make payments for the 12 months.

So £800!