DRO History Checks

Bueno90

Hello,
Can anybody tell me how far the checks go regarding the past 2 year history of repaying creditors?

I'm about to apply for a DRO but Im worrying I will get rejected on the basis that over 18 months ago I was temporarily repaying a family member £50/month (it was a loan to fix my car) and I declared this on my Stepchange DMP - will the official receiver check my DMP history, view this as a preferential payment (I was paying my other creditors £10 - £20 each per month) and refuse my application ?
Or do they just take in to account the information you fill in on the DRO form?

Thanks for any advice at all

fatbelly

A dmp is an informal arrangement and the OR will not be able to check your history with that.

If you are applying through stepchange they will tell you if there is anything that might affect your application but I would have thought that a minor glitch 18 months ago would not raise any eyebrows with anyone.

The DRO Team at the Insolvency Service only do very basic checks - an Experian check and an insolvency check. You don't buy much of their time for £90

Bueno90

Thankyou for your reply!
I've heard in the past that preferential payments are very likely to be spotted by the advisor setting up the DRO. But is this only the case if you explicitly disclose them? 

I know Stepchange sent a copy of my budget to each creditor to agree their payment amount, so can a creditor object to a DRO saying "I have evidence she was paying a family member £50/month and I only got £12/month!!"

I may be dramatic but I dont fancy being slapped with anything legal etc

Thanks again

fatbelly

Honestly it's not going to be a problem/ I've done hundreds of these things and never seen what you are suggesting

Bueno90

Ok, thankyou! That's a huge weight lifted.

My Husband is seriously considering a DRO also (the reason we have had a big drop in income is he can no longer do his job due to severe sight impairment) however on his DMP he also had a 'preferential payment' going to his Mum (£200/month for a year) and a friend (£150/month for a year) this was to repay for money loaned to him by them for several reasons (paying CCJ fines from creditors, money towards rent / living expenses when he was temporarily out of work)

Would his preferential payments not be an issue unless he explicitly disclosed them?

fatbelly

Then he's in the same situation as you, just with different numbers.