DRO lump sum and business

KSalin

I have just submitted my paperwork for a DRO with Business Debtline and have been told there is a 9 week wait. My debts total £13,200 mostly on credit cards. I was ill last year and unable to work as much as I used to and ended up getting myself into arrears.

In the meantime, a family member has sold a house and I am hoping to recover money that I'm owed (possibly £8000). Obviously, if I do receive this the DRO can't go ahead.

What is the best way to deal with my debt if I do get the money I'm owed?
I'm self-employed and the cash would allow me to expand my business to be able to increase my earning potential but I'd have to try and come to some payment arrangement with my creditors in the meantime until I can get my monthly payments back to a reasonable level.
Or, I could use the money to settle some of my debt but that means that I don't have any to put into my business (for additional business software, websites, hosting etc) and so my regular income won't change.
Any advice would be appreciated. What would you do?

Thanks.

debt_doctor

Hi,

As you are currently not under any form of insolvency, you can do what you want with your money. What might be an issue was if you were to enter in to a DRO in a shortish period of time after you have spent the money - in other words you may have to account of how and why you spent the money to your intermediary.
You know your business, would it grow and become more profitable as a result?
Perhaps you wouldn't need to become insolvent if you invested the money?
In all honesty, it's up to you.

DD