DRO query

Querier

Hello, all.

Just a query about a DRO, please.

I am considering applying for a DRO, but something has come up and which has stumped me a little. I have been in touch with two of my three creditors (two credit cards, and one a friend) about my situation over the last few years and haven't paid anything due to my low paid job, my outgoings and my mental health condition.

Except that, over the last few years, I did pay one creditor - the friend - very, very slowly. The friend was also (and is also now) not aware that I had credit card debts (and not that it was any of their business).

Researching online, I found the following at the CAB website:

"You must tell your DRO adviser if in the last 2 years you’ve:

• prioritised paying back one creditor over others, for example if you paid off a debt you owed to a relative and didn't pay your other creditors

Your DRO application might be refused if any of these apply to you. They'll look at the facts of your case before making a final decision."

If I had known about this a few years ago, I wouldn't have paid my friend at all, even at the slow rate of paying them back, in case it counted against me if I were to ever apply for a DRO or bankruptcy. But obviously it is now all too late and what's done is done. I also don't want to hide this from the Official Receiver (or whoever administers DROs) because I don't want to end up with a criminal record (if it is indeed a criminal matter), because the credit card companies (and their debt collectors) have been fair and transparent with me and also because the payments I made to my friend were all electronic and are there in previous bank statements.

If I did apply for a DRO, would this be grounds for refusal?

Thank you

JonVarnas

What sort of amounts are we talking about?

Querier

JonVarnas said:

What sort of amounts are we talking about?

Thank you, Jon. Credit cards total around £18k, friend £4k and now nearly paid off (paid off near £3k).

sourcrates

There is some flexibility in the system, and I doubt you would be penalised for such a small infraction such as this.

The debt to your friend has to be included in your DRO, and you can`t continue to pay them during the moratorium period, however, you can do so after discharge, if you wish.

When you apply for a DRO you are appointed a DRO rep who will guide you through the application process, if they think there are any reasons why your DRO would not be granted, then they will tell you so, and will not submit the application.

So you will know at an early stage if it will go ahead or not, because once submitted, 99% of the time, the IS just rubber stamps the application to approve it.

So you won`t lose your £90 fee, as you will know if its a yes or not, beforehand.

Querier

sourcrates said:

There is some flexibility in the system, and I doubt you would be penalised for such a small infraction such as this.

The debt to your friend has to be included in your DRO, and you can`t continue to pay them during the moratorium period, however, you can do so after discharge, if you wish.

When you apply for a DRO you are appointed a DRO rep who will guide you through the application process, if they think there are any reasons why your DRO would not be granted, then they will tell you so, and will not submit the application.

So you will know at an early stage if it will go ahead or not, because once submitted, 99% of the time, the IS just rubber stamps the application to approve it.

So you won`t lose your £90 fee, as you will know if its a yes or not, beforehand.

That's reassuring, sourcrates. And the post informative. Thank you.