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2 questions about a DRO - help appreciated

Hi all

I am currently applying for a DRO and I have 2 questions

1 - What happens during the the 12 months probation period during the DRO? Will I still be receiving threatening letters regarding the debt?

2 - At the moment I earn minimum wage and have under £50 / month spare - what happens if i receive a promotion during or after the DRO is complete?

Comments

  • fatbelly
    fatbelly Posts: 23,722 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Cashback Cashier
    Hi all

    I am currently applying for a DRO and I have 2 questions

    1 - What happens during the the 12 months probation period during the DRO? Will I still be receiving threatening letters regarding the debt?

    2 - At the moment I earn minimum wage and have under £50 / month spare - what happens if i receive a promotion during or after the DRO is complete?

    It's called the moratorium period. Once the message gets through the 'threatening' letters should stop. Creditors are not allowed to demand payment and you are not allowed to make payment (rent arrears for present property is an exception). However, as the debt is not written off until the end of the 12 months, they are allowed to send statements.

    If your income increases during the moratorium period you should inform the DRO Unit. After the end, it doesn't matter.
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