DRO Bank Statements

Simplyme

Hi,

I have been on my DRO about 2 months. Certainly making life feel less stressful.

My question is this ' Does the OR / IS always ask for banks statements during the period you are in the DRO?'

I read that you need to keep you statements for one year I think it is during the DRO in case the OR wants to see them but do they always ask for it? Or would it be unusual to do so.I guess they can see bank balances somehow or what you are getting paid from tax office??

I have had something happen that I have been paid less than I should due to the incorrect tax code when changing to a different branch of the company (but it is the same job role and pay). To make up the difference I have had some money come in from a friend via Paypal (things they sold on Ebay)

I am concerned they will see these Paypal transactions / extra credit over the last couple months coming into my bank account at some point and cancel the DRO which I need to keep to as I have no spare money. I obviously do not want to jeopardise my DRO.

All the money I had was used on living expenses and no major treats.

Any advice would be appreciated. I was paid something like £85 a week less than my forecast monthly wages due to the tax code error so clearly on the tight budget this has meant I was unable to live without extra money being placed in my account for bills and living expenses. I also want to try and save some money for a holiday later in the year is that allowed to be seen as money building up in your account?

It is not like I have been having a jaunt, but any advice would be appreciated.


Simplyme

National_Debtline

Hi Simplyme


It's not commonplace to be asked for one's bank statements partway through a DRO - the idea being that all such paperwork will already have been vetted by your intermediary prior to the DRO's approval. However it is always recommended that you notify the Insolvency Service of any extra sources of income you receive during the 12-month moratorium period, if only to cover your back.


Presumably you will be entitled at some point to a rebate of the tax you have overpaid? This will need to be factored in as well as you may be receiving a lump sum and/or a larger than usual pay cheque, and this may need to be explained to the Insolvency Service too.


I would suggest that you speak to the intermediary that set up your DRO about all of the above, if at all possible.


On your final question about a holiday fund: if you are able to live so far within the living costs your DRO budget is based on that you can save some money up each month, that in itself is fine. However, if you were to accrue so much in savings that, added to the value of your belongings, they exceeded £1,000 before the 12 months were up, you would be obliged to declare this and the DRO could potentially be revoked. So, by all means save, but just bear this in mind.


Dennis
@natdebtline