DRO preferential payment help

iamarealmoron

Hi so in around 2 months i will lose my only source of income (carers allowance), and i have roughly £7,800 in debt with 3 different credit card providers, i am currently making minimum payments to them all which leaves me with £25 leftover each month.




I was looking at a DRO but i am concerned that i will not be eligible because i have been making larger payments to littlewoods, as i purchased some goods on it with my fathers account. I have already paid off £600 by using two of the credit cards and i was planning on selling the rest of my belongings to cover the other £1000 but i was reading that this would be seen as preferential payment and would leave me ineligible for a DRO.



Any advice would be appreciated, thanks.

sourcrates

Hi,
I wouldnt worry too much about your financial dealings prior to entering a DRO, you are not scrutenized that much, and i doubt your payments were that excessive, if the account was in your fathers name, anyway, then its not technically your debt, so can be disregarded,


Basically if you meet the other criteria for a DRO then start the ball rolling, your DRO advisor will inform you if there is any chance of your application not succeeding.

fatbelly

If I understand what you did, you transferred some of your father's catalogue debt to your credit card because you had bought items from that catalogue.

It's not a preferential payment but it is conduct that is frowned upon. So in the run-up to a possible DRO you need to be more careful.

'Belongings' of £1000 are covered by the asset limit so you may not need to sell. If you do, then you must sell at a market price.

Carers Allowance is not very much. How are you going to survive?

iamarealmoron

Carers Allowance is not very much. How are you going to survive?

Oh sorry i am currenly on carers allowance now and that will be stopping so i will have no income, luckily i am able to live with family members who will help me out



Do you happen to know how long the DRO process takes with CAB both stepchange and nationaldebtline told me it would be around 10 weeks, would CAB be any quicker?



Thanks

sourcrates

iamarealmoron wrote: »

Do you happen to know how long the DRO process takes with CAB both stepchange and nationaldebtline told me it would be around 10 weeks, would CAB be any quicker?

Its a few weeks now i beleive, whichever intermediary you go with.
Dosent really make much difference, if your concerned about creditor contact, debt collection is a slow process, so you may get a few calls and letters, but nothing else in that short space of time.