DRO after 12 months

Roid

I was accepted for a DRO and the 12 month period is coming to an end in the new year. I’m incapacitated for work and I’m concerned my sickness support payments increased during this period, could the Insolvency dept revoke my DRO? 

MalMonroe

This is what the free debt help agency StepChange says -

https://www.stepchange.org/debt-info/dro-moratorium-period.aspx

Part of it says : 

"If you receive a lump sum or an asset during your moratorium period, your DRO shouldn’t automatically be revoked (cancelled) as long as:

• The amount is less than £1,000
• It's worth less than 50% of the total amount of debt you owe
• You tell the Insolvency Service DRO Team within 14 days of receiving it. If they find out this information from someone else they WILL revoke your DRO."

If you have any doubts at all, you could always phone StepChange to clarify, it's a free call - 0800 138 1111.

fatbelly

As long as your surplus income stayed below £75 per month through the moratorium, there's no problem. A small increase in benefit payments is unlikely to cause any issue. 

The lump sum protocol doesn't apply here but as stepchange seem to have it incorrect I'll post it anyway

This applies where a debtor receives a lump sum during the period after a DRO has been made.

If a debtor receives a lump sum of £2,000 or more during the DRO period, they must report it to the official receiver and we will consider the case based on its own merits and make a decision whether revocation is appropriate or not.

Where a DRO is revoked and the debtor remains insolvent the debtor can use the lump sum to enter a different insolvency remedy for example bankruptcy or IVA.

sourcrates

Even if your payments increased, so would your expenses, so they would cancel each other out.

You are not checked up on, and I would not attempt to complicate matters by thinking about what if`s.

In my experience benefits don`t tend to increase by very much, usually just pennies.