Possible preferential payment? Advice needed

ilomilo

I'm in the final stages of applying for a DRO and realised I'm not sure if I made some preferential payments in the past...

For a few months early this year I took out rent money from one of my credit cards and paid the same amount back each month until I realised this was not sustainable. After this I carried on making minimum payments only and left the rest on credit. I was making payments to all my creditors at the time and have now ceased making payments to all creditors, including friends and family, since seeking advice from Citizens Advice and making the DRO application.

Is this even classed as a preferential payment as I was paying all creditors at the time? If so, how strict is the policy on this or is it something that depends on the circumstance? I only remembered this today and I'm very worried as I'm not sure what I will do if the DRO is rejected

RauHughes

That is not a preference and you will be fine. Nothing to worry about

fatbelly

A preferential payment is a payment that deliberately puts a creditor in a better position, like paying off a family debt while ignoring everyone else.

Where you're making a payment that is a priority, like rent or fuel, that can't be a preference

ilomilo

Thanks for your responses. I have another question too that's similar if anyone can help...

I'm also worried as one of my creditors took out a direct debit of £60 after I informed them to pause the account. I also told my employer to pay all wages into my new basic bank in the case something like this happened but they accidentally paid it into the old one, when the direct debit was due the same day! I'm quite annoyed about it as I never actually intended to make the payment and tried my best to avoid it by both trying to move my wages over to the new account AND informing the creditor to stop.

Would this even be classed as a preferential payment? I informed all creditors and stopped paying all of them. If it is, would a small amount like £60 really be that detrimental to my application overall considering the circumstances?

WillGoodfellow

The direct debit will be fine, it's nothing to worry about. You can contact your bank and cancel the direct debit otherwise the creditor may try to take another one when it's due.

liggerz87

Also with direct debit garentee you can claim the money back from the bank soeak to them