Scared that my DRO will be revoked *UPDATED Aug 2016*

Piggywinkle

Hi all,

I thought it best to update as there are so many threads here asking for help and then people never come back to tell us how it turned out!

Anyhow, I compiled a comprehensive pack of information for the DRO unit and sent it off recorded delivery. I gave it a fortnight but had still not heard anything so I called them up. Apparently, my reply had simply been filed and not marked that any action was needed. Helpful! I was assured that it would be treated as a priority.

A week later - still nothing, I called up and was told that they had a backlog and would look at it 'in due course.' Not very helpful to me to be honest, I was thinking about some scary stuff during this time.

Yesterday, a gent from StepChange called me to say that the DRO Unit had been in touch to tell them they were going to revoke my DRO in September. I've yet to hear anything from the DRO unit itself. StepChange said that they periodically notify the DRO unit of problems that their clients have had and could he pass on a message about my response being filed without action? I agreed, for what it's worth. I detailed all of my mental health issues, as well as the fact that my PPI award was unsolicited and that the 2k offer wasn't nearly enough to offer full and finals towards my debts. Still being revoked. StepChange said that in honesty, it wasn't worth any appeal and that I should now be looking at BR as the next step.

The guy at StepChange told me to now cash the cheque and also intimated that if I had any urgent expenses (i.e. if my fridge/washing machine etc. 'broke down') then I should now replace them from that PPI payout, leaving enough to ensure that my BR fees were paid.

In absolute honesty, I could do with a bit right now. My 14 year old car is due it's MOT next week and my hoover, washing machine and iron are all on their last legs, but I've not been able to replace them. Would the OR look on those purchases negatively? I would obviously provide receipts.

So folks... that's what has happened. StepChange said that any windfalls over £1000 are pretty much cut and dried revocations unfortunately so it anyone finds themselves in the same position, then please expect this to happen.

I am feeling a little despondent today but a bit more resilient thanks to the fact that I haven't go to panic about my MOT next week! Thank you all so much for your help. I'm off now to research how to write shorter forum posts

DorisTrousers

Using the money for legitimate expenses as detailed above will not be frowned on at all, so please don't panic.

The bit about any amount over £1,000 is wrong though, at least in theory. From the Intermediary Guidance notes:

"Where the value of the property, including lump sum payments, is between £1,000 and £1,850, each case will be assessed on its own merits taking into consideration numerous factors, including but not limited to liabilities, health, personal circumstances, age, etc. and a decision will be made on an individual basis as to whether it would be appropriate to revoke or not. Where the value of the property, including lump sum payments, is in excess of £1,850, it is more likely that a DRO may be revoked, although any mitigating factors would be included in our determination."

Little bit woolly, but does hint that not automatic revocation unless over £1850.

wba31

DorisTrousers wrote: »

The bit about any amount over £1,000 is wrong though, at least in theory. From the Intermediary Guidance notes:

"Where the value of the property, including lump sum payments, is between £1,000 and £1,850, each case will be assessed on its own merits taking into consideration numerous factors, including but not limited to liabilities, health, personal circumstances, age, etc. and a decision will be made on an individual basis as to whether it would be appropriate to revoke or not. Where the value of the property, including lump sum payments, is in excess of £1,850, it is more likely that a DRO may be revoked, although any mitigating factors would be included in our determination."

Little bit woolly, but does hint that not automatic revocation unless over £1850.

When I have had some PPI refunds appear at the feet of some of my clients that I've sent onto SC they have advised as per the guidance notes you have posted above.

I would agree that essential expenditure taken from the lump sum would not be an issue if considering bankruptcy

Piggywinkle

Thanks for your replies. The StepChange staff member used the words 'pretty cut and dried', so I suppose there is room for manoeuvre. I received the letter from the Insolvency Service earlier which basically said that the PPI payment meant that I would no longer meet the DRO criteria of having less than £1000 in assets, so in line with what StepChange said really.

Got myself a bottle of wine tonight to make me feel temporarily better!

National_Debtline

Hi Piggywinkle

Piggywinkle wrote: »

Thanks for your replies. The StepChange staff member used the words 'pretty cut and dried', so I suppose there is room for manoeuvre. I received the letter from the Insolvency Service earlier which basically said that the PPI payment meant that I would no longer meet the DRO criteria of having less than £1000 in assets, so in line with what StepChange said really.

Got myself a bottle of wine tonight to make me feel temporarily better!

The Insolvency Service letter sounds like it is just stating the plain facts - true, you will no longer meet the criteria, but it doesn't automatically follow that the DRO will be revoked.


It sounds like your journey is taking a longer route than originally planned, but your destination will remain the same.


Enjoy your vino :-)


Dennis
@natdebtline

Garethgrew

Keep us updated on your BR, I hope they learn a lesson. You should tell them they just lost another 2k and that will be spread around your other creditors after you buy all nessasary things you need for yourself. And I recommend a nice little holiday for your family for medicinal reasons

alltaken

You should delete this.

mwarby

sourcrates wrote: »

Although this may seem a bit like locking the stable door after the horse has bolted, but there is no mechanism for checking up on DRO applicants assets, if you hadn't told them about the PPI refund, they would not of known, they rely on you to tell them of any changes, if you had spent the money, they would of been non the wiser.


However that would of been construed as fraud and your DRO would of been revoked..........................

if you get done for fraud that would make you more of a financial lepor than any DRO, IVA or bankruptcy. Attempting to defraud the OR would be very very stupid IMHO

Piggywinkle

mwarby wrote: »

if you get done for fraud that would make you more of a financial lepor than any DRO, IVA or bankruptcy. Attempting to defraud the OR would be very very stupid IMHO

Although in some moments, I think it would have been an option to not 'fess up to the Insolvency Service, I am just far too honest a person to have ever gone through with it. It's my fatal flaw!

Piggywinkle

alltaken wrote: »

You should delete this.

Could I ask why? (If your post is actually to me!)