DRO - Tax Rebate

Misseh

Hi Everyone,
I'm looking for some help with regard to a DRO and a tax rebate. I've just applied for a DRO through Step Change Debt charity and have recently spoken to HMRC and I've been advised I've overpaid tax. I'm now due a rebate which I've calculated between £300-£900, I do not have an accurate figure as I'm awaiting to receive the cheque.
Can someone please advise me if the DRO is likely to be revoked due to receiving a lump sum of funds?
If someone could let me know where I stand that would be great.
Thank you,
M

debt_doctor

Hi,

The DRO unit can use their discretion to decide whether to revoke your DRO at the level of money you have suggested, but as it is over £300 you must declare it.

I'm afraid that I feel your DRO will be revoked, would be happy to be proved wrong.

DD

wba31

debt_doctor wrote: »

Hi,

The DRO unit can use their discretion to decide whether to revoke your DRO at the level of money you have suggested, but as it is over £300 you must declare it.

I'm afraid that I feel your DRO will be revoked, would be happy to be proved wrong.

DD

I agree with this. If you are working bankruptcy would cost you in the region of £700, so if you receive less than £700 you could argue it would cost you even more to now declare yourself bankrupt, but the DRO Unit will most likely make a decision without consulting you

fatbelly

I think this section of the Intermediary guidance should apply:

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.

Misseh - have you actually been awarded your DRO yet?

Have Stepchange submitted your application to the DRO Unit?

If the answer is no, then get it stopped! Then post again for what you do with your lump sum once you have it.

Misseh

Hi

Thanks everyone for the replies, I've only just sent my paperwork in (2 days ago) and I'm yet to pay the fee. So I'm not actually under DRO restrictions. I've heard that I will have to wait at least 3 months after receiving the monies to re-apply for my DRO?

I'd much rather play by the book, I've had this debt for so long - I just want it gone

I Will call Step Change tomorrow to discuss and I will update everyone on here.
I was hoping to use the monies to buy a vehicle. If I buy a vehicle, my circumstances will not change; as I pay my partner fuel costs to ferry me around, it will just go on my vehicle instead.

I hope this makes sense and fingers crossed!
M