Dro preferential treatment

Nicky48

Hi I need advise I have just received my dro application and stepchange have put yes to preferential treatment of creditors which right at the beginning I said I had paid my door step lenders money whilst I hadn't paid the other creditors. One door step lender was paid with continously payment authority up till December and another up to December, my other creditors where paid up to oct/Nov. The amount I paid between them is £85.00 would the insolvency refuse my application??? Really stressed about it all. Thanks

sourcrates

Hi,


Technically this is called “preference” paying some creditors and not others.

That may sound alarming, but it’s actually pretty common.

Although the DRO Unit can refuse a DRO application if this has happened, they first assess how serious the preference was.

Most people don’t have a problem, if the preference was a while ago and before you took advice about a DRO, it matters a lot less, so from this point you must treat all your debts equally and stop paying any of them.

Talking to your DRO Advisor first may ease your mind a little.

Nicky48

Thank you I will be discussing it on Monday I got my dro application and barcoded letter by email this Friday evening so only just opened it yesterday. The whole thing is stressful. I was advised to wait 3 months I first got in touch in January so have waited. My last payment to any creditor was December so hopefully it will be OK.

fatbelly

I don't think you'll have any problem because it's not really a preference.

The DRO Unit will have to look at it because it's flagged up. But all that seems to have happened is that it took a month, maybe two, for creditors to receive their last payment from you. That isn't 'putting one of their creditors in a position which, in the event of the individual having a DRO approved, will be better than the position he would have been in if that thing had not been done.'

I wouldn't have flagged it up.