How long for DRO to be granted?

The-Joker

So for ongoing things like for example gas, electric and water. You should get new bills starting from the day after your DRO?

fatbelly

The-Joker wrote: »

So for ongoing things like for example gas, electric and water. You should get new bills starting from the day after your DRO?

Yes. I'm not sure all water authorities have a bankruptcy clause so you might get relief until the following April if you are lucky

The guidance in relation to bankruptcy and the effects on water rates is quite clear and there is no reason to believe that this guidance is not equally applicable to Debt Relief Orders.

Where a debt is due and payable on a certain date, but is allowed to be discharged over a period up to the ensuing year, the amount of the debt is known as at the 1st April for the relevant billing year, that debt is a liquidated debt and thus capable of inclusion in a Debt Relief Order.

How a water rates bill will be dealt with will be dependant upon the charging regime operated by each provider, however where water is supplied under a charges scheme that is rate-based rather than metered, the charges scheme may provide that any standing charges are due and payable in advance, generally!on 1 April each year. Therefore, the whole of that year’s charge, or unpaid balance at the date of the Debt Relief Order, may be scheduled in the application, in addition to any arrears from previous periods. As the whole debt becomes due prior to the insolvency, it is a qualifying debt.

It is the responsibility of the intermediary/debtor to establish the water company’s position with regards to the debtors account and where the full amount for the year may be scheduled, it should be scheduled.

The Insolvency Service are aware that as a result of legal advice received by various water authorities and with the approval of OFWAT, many water authorities have now amended their charging regimes to include an “insolvency clause” which they state allows them upon the making of a Debt Relief Order, to apportion their water charges pre and post order.
Intermediaries should where appropriate continue to schedule the full years water charges in a DRO application, however you must ensure that your clients are apprised of the possibility that an insolvency clause may exist within a water authorities charging regime and if that is the case, then upon the making of a DRO the water authority may apportion their charges pre and post order and issue a revised water bill for services provided subsequent to the making of the order.

Charges for metered supplies are treated differently as, generally speaking, the meter will be read at or about the date of the Debt Relief Order and the amount to be scheduled in the DRO based on that reading. New supplies will be paid for when charged.