Stuck between a rock and a hard place: Bankruptcy vs DRO on UC

JonVarnas

Well I was granted my DRO yesterday so woohoo , but I've got another question now.

Included in my DRO were two debts that are currently automatically deducted from my Universal Credit award, namely an advance and a tax credit payment. Now Stepchange advise me that it can take four weeks for named creditors to be contacted by the OR, so it's possible another set of payments will be deducted from my Universal Credit. So, should I contact the DWP and notify them of my DRO or should I wait for the OR to notify them? If I wait, I do believe that I will be refunded any payments deducted judging by the "Benefit overpayment recovery guide" https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/911407/benefit-overpayment-recovery-guide.pdf

6.3 Once the insolvency period has commenced, any deductions from benefit should cease, and any deductions made after the start date of the insolvency should be refunded to the debtor. This includes any monies recovered for a fraud debt.

So, should I wait or be proactive?

fatbelly

JonVarnas said:

Well I was granted my DRO yesterday so woohoo , but I've got another question now.

Included in my DRO were two debts that are currently automatically deducted from my Universal Credit award, namely an advance and a tax credit payment. Now Stepchange advise me that it can take four weeks for named creditors to be contacted by the OR, so it's possible another set of payments will be deducted from my Universal Credit. So, should I contact the DWP and notify them of my DRO or should I wait for the OR to notify them? If I wait, I do believe that I will be refunded any payments deducted judging by the "Benefit overpayment recovery guide" https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/911407/benefit-overpayment-recovery-guide.pdf

6.3 Once the insolvency period has commenced, any deductions from benefit should cease, and any deductions made after the start date of the insolvency should be refunded to the debtor. This includes any monies recovered for a fraud debt.

So, should I wait or be proactive?

I'd be proacive - they will no doubt drag their heels anyway

JonVarnas

fatbelly said:

JonVarnas said:

Well I was granted my DRO yesterday so woohoo , but I've got another question now.

Included in my DRO were two debts that are currently automatically deducted from my Universal Credit award, namely an advance and a tax credit payment. Now Stepchange advise me that it can take four weeks for named creditors to be contacted by the OR, so it's possible another set of payments will be deducted from my Universal Credit. So, should I contact the DWP and notify them of my DRO or should I wait for the OR to notify them? If I wait, I do believe that I will be refunded any payments deducted judging by the "Benefit overpayment recovery guide" https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/911407/benefit-overpayment-recovery-guide.pdf

6.3 Once the insolvency period has commenced, any deductions from benefit should cease, and any deductions made after the start date of the insolvency should be refunded to the debtor. This includes any monies recovered for a fraud debt.

So, should I wait or be proactive?

I'd be proacive - they will no doubt drag their heels anyway

Turns out I didn't even need to contact them. Checked my UC Journal and there was a note on there saying they recieved my insolvency notice yesterday. Surprised at how fast it all is once you get past Stepchange - the Official Receiver doesn't mess about

JonVarnas

Me again, bit of a bummer with this one.

My DRO was granted on 30th September but I've just got a letter today from Lowell stating that they had purchased one of my included debts on 17th September. Both the notice of assignment from my previous creditor and the letter from Lowells are dated 5th October. Does this mean the DRO is invalidated and/or Lowell are still able to pursue the debt?

fatbelly

JonVarnas said:

Me again, bit of a bummer with this one.

My DRO was granted on 30th September but I've just got a letter today from Lowell stating that they had purchased one of my included debts on 17th September. Both the notice of assignment from my previous creditor and the letter from Lowells are dated 5th October. Does this mean the DRO is invalidated and/or Lowell are still able to pursue the debt?

If the debt was listed under its previous owner then it is still covered by  the DRO

sourcrates

No they can`t pursue a rice pudding, write and tell them they have purchased a pup, and smile whilst doing it !!

JonVarnas

Thanks. I rang StepChange and they said the same thing.

JonVarnas

Me again

I've just received an email from the DRO team with another DRO approval letter dated today which is identical to my original DRO letter except that one of the included debts has been increased, namely my water utility debt. My DRO is on the insolvency register with the original approval date and a couple of my creditors have already been contacted by the OR, including the water utility. Has this happened to anyone else before?

Also, is it possible for admin to move this thread into the DRO section as it seems more suitable?

fatbelly

JonVarnas said:

Me again

I've just received an email from the DRO team with another DRO approval letter dated today which is identical to my original DRO letter except that one of the included debts has been increased, namely my water utility debt. My DRO is on the insolvency register with the original approval date and a couple of my creditors have already been contacted by the OR, including the water utility. Has this happened to anyone else before?

Also, is it possible for admin to move this thread into the DRO section as it seems more suitable?

What you've got there is a corrected Debtors Notice - the DEBTNOT.

Your water authority has done the correct thing, which is to notify the DRO team of the correct balance before setting your account to zero. Some water authorities would have transferred a positive balance to the new account.

JonVarnas

fatbelly said:

JonVarnas said:

Me again

I've just received an email from the DRO team with another DRO approval letter dated today which is identical to my original DRO letter except that one of the included debts has been increased, namely my water utility debt. My DRO is on the insolvency register with the original approval date and a couple of my creditors have already been contacted by the OR, including the water utility. Has this happened to anyone else before?

Also, is it possible for admin to move this thread into the DRO section as it seems more suitable?

What you've got there is a corrected Debtors Notice - the DEBTNOT.

Your water authority has done the correct thing, which is to notify the DRO team of the correct balance before setting your account to zero. Some water authorities would have transferred a positive balance to the new account.

Ah I see, well I didn't see as it was printed in the top corner of the letter .

Thank you.