DRO advice on paying some debts but not all

Wright1976

Hi guys, please could i have some advice. Im considering a dro but i am concerned that it may be rejected because i pay two depts off out of about ten - currently, because i cant afford to pay them all off via small monthly payments. I pay 25 council tax and 50 santander overdraft debt. Will this be a an issue in obtainig a dro?

Thanks

National_Debtline

Hi there

Wright1976 wrote: »

Hi guys, please could i have some advice. Im considering a dro but i am concerned that it may be rejected because i pay two depts off out of about ten - currently, because i cant afford to pay them all off via small monthly payments. I pay 25 council tax and 50 santander overdraft debt. Will this be a an issue in obtainig a dro?

Thanks

Your payments towards the council tax should not be an issue as it is a "priority" debt with the potential to escalate quickly to bailiffs etc. if not addressed.

Your payments to Santander could be viewed as "preferential" as this is deemed a non-essential outgoing. Are you still actively using the Santander account or are you now banking elsewhere? Either way, you should stop these payments with immediate effect and ensure that you have a "safe" bank account available i.e. one that is not connected to any of your creditors.

Speaking for our own DRO department, we would not stop you from seeking a DRO, but we would warn you in advance that the Insolvency Service reserves the right to decline an application if there is evidence of so-called "preference payments" in the two years leading up to the application.

Other DRO intermediaries may have different policies.

Regards

Dennis
Twitter: @natdebtline