DRO - sale of asset.

Hheyes

During a DRO moratorium, is the sale of an asset considered to be income?
Please and thankyou.

MalMonroe

Hi, this is what StepChange 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."

It's in this link - https://www.stepchange.org/debt-info/dro-moratorium-period.aspx

It isn't clear from your post whether or not you are now in a moratorium period but if you are, you should contact the specialist adviser who helped you to obtain the DRO, since you can only apply for one through an approved intermediary. They will be able to advise you further.

Hheyes

Thanks.

My post relates specifically to the issue of, during the moratorium, selling some existing assets to increase available cash and thus provide a small amount for contingencies.

fatbelly

Hheyes said:

During a DRO moratorium, is the sale of an asset considered to be income?
Please and thankyou.

No it isn't

An asset is an asset. If you cash it in during the moratorium, then you are expected to sell it for the market value, which is what you entered it as on the original application.

What are you selling?

Hheyes

fatbelly said:

Hheyes said:

During a DRO moratorium, is the sale of an asset considered to be income?
Please and thankyou.

No it isn't

An asset is an asset. If you cash it in during the moratorium, then you are expected to sell it for the market value, which is what you entered it as on the original application.

What are you selling?

Thanks.

Various personal 'non-essential household' items - example: furniture/decorative objects, jewellery, guitar, etcetera.

(Because i'd rather have the value as money in my bank account and thus available should it be needed to meet unexpected costs - example: car repairs, replacement clothing, and suchlike.)

fatbelly

Shouldn't be a problem.

If you sold a car during the moratorium, then you could see how that could be an issue because there is a separate 2k limit for a car (if you own one). All the other assets (cash etc) have their own 2k limit 

sourcrates

For the purposes of a DRO household goods/personal items etc are not counted as assets.

Singular items of value, such as expensive jewellery, or paintings by famous artists etc are classed as assets.

Bits and bobs sold on eBay won`t be on the radar, and no one will know unless you tell them.