Question for people who've been passed first 12 months

rolfcart

Hi forum,

I am in the DRO process and am about to start. It has been difficult proving my income and spending due to many personal reasons and self employment.

Do the insolvency or the DRO advisors constantly check your budget every month? or just at the end of the 12 month period?

When I was applying I was told that if they saw payments to me that were above a certain amount they might just cancel the DRO on the spot, what they don't see is that I might not get paid again for months!

Can anyone who has been through the scheme and come out the other side advise on how much contact they made with you?

MUMZ2BEE

I am using National Debtline when I apply for a DRO in October.

They told me they only need statements for 2 months leading up to the DRO application.

wba31

rolfcart wrote: »

Hi forum,

I am in the DRO process and am about to start. It has been difficult proving my income and spending due to many personal reasons and self employment.

Do the insolvency or the DRO advisors constantly check your budget every month? or just at the end of the 12 month period?

When I was applying I was told that if they saw payments to me that were above a certain amount they might just cancel the DRO on the spot, what they don't see is that I might not get paid again for months!

Can anyone who has been through the scheme and come out the other side advise on how much contact they made with you?

Your intermediary should check your income from evidence prior to it starting, and as long as you remain on an average over the moratorium period there will be no issue. This isnt checked again once the DRO is in place, it is your legal responsibility to notify the Insolvency Service if your average income increases.

If it goes up it doesnt necessarily mean revocation as you may budget more expenditure to offset any extra earnings.

The-Joker

So what would happen if after starting a DRO, you get a good job or higher income and you didn't tell them. Is there any way they would know?

National_Debtline

The-Joker wrote: »

So what would happen if after starting a DRO, you get a good job or higher income and you didn't tell them. Is there any way they would know?

Hi Joker


As wba says, the legal responsibility is on the debtor to inform the Insolvency Service of such changes. There's no mechanism to automatically inform them of wages rises/drops etc.


If the debtor failed to do so, and this came to light later - even many years later and after the DRO had run its course - the DRO could still be belatedly revoked and the debtor could even be prosecuted in serious cases of non-disclosure.


Dennis
@natdebtline