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DRO preferential payment advice

Notrub90 Forumite Posts: 2 Newbie
Last week I finally rang up a debt solution company to try and seek some help. They have been great. One I went through my income and expenditure I was advised that a dro is the only thing for me. I sent over my bank statements and I had a phonecall today to which I had to explain certain payments to friends and family for borrowed money to get by to paydays for essentials.
He said that it is unlikely I will be accepted because of this being preferential payments.

I haven't paid any of my creditors a penny for years as I just can't afford it. He said I can still apply but the chance of acceptance is low. I offered to provide a statement to explain why payments were made to family and friends. Would this help? Also I was obviously unaware about this and only heard of a dro a few weeks back.

I want to apply but I am afraid it will be refused because of this.
If I split the money I had borrowed and paid back over 3 months it would give the creditors about 100 each. Being 11k in debt it would still leave me in a position where I couldn't decrease the debts.
The money borrowed off friends was simply a couple of days loan to get things I needed to survive. Not big payments to pay for unnecessary things.
Am I likely to be refused? Or is it worth taking the risk?


  • MovingForwards
    MovingForwards Forumite Posts: 16,553
    10,000 Posts Fifth Anniversary Name Dropper Photogenic
    How much you paying this debt relief company?

    Stepchange etc help for free and may not suggest a DRO.

    If you put up a statement of affairs, the link is on the forum, members can offer you constructive advice, for free!
  • Notrub90
    Notrub90 Forumite Posts: 2 Newbie
    They are a debt solution company. There services are also free. I have had a income and expenditure done for me and the agent said the only option for me is a DRO as I can't afford the money for bankruptcy. IVA is not an option because I have no spare income since starting a lower paid job. I just want soneones advice or past experiences on the above to see where I stand.
  • fatbelly
    fatbelly Forumite Posts: 19,203
    Part of the Furniture 10,000 Posts Name Dropper Cashback Cashier

    DROs can only be done by 'Approved Intermediaries' working for 'Competent Authorities'

    Stepchange and CAB do most of them. What the adviser said was pretty much nonsense but it's possible to get poor advice anywhere these days. Was it one of them?

    Try another agency. With 11k of debt and no surplus income it sounds like a no-brainer unless there is a genuine reason not to go for it.
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