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DRO - is this a preferential payment? + other questions.

Squeaky_Kleen
Forumite Posts: 11
Forumite


So I'm in a situation where it looks to me like a DRO is my most sensible course of action. I'm self-employed sole trader and I have a Bounce Back Loan (£19k), 2 credit cards (£3k and £2k) and an overdraft (£1k). I have less than £2k in assets (how is this verified btw do they do a home visit to check how nice your TV is.. I'm living at my Dad's house? Also how many months of bank statements do I need to supply?) and not a home or car owner.
Over the last 6 months I had a plan with one card for £14 a month and the other card settled for no payment for 6 months with a view to things hopefully being better after the 6 months (they aren't) . On the Bounce Back Loan I've been on one of the "Interest Only" periods for the last 6 month.. around £30 a month. Basically with each one I've paid the minimum they will accept. Could this be considered preferential payment in any way since BBL got £30, one card got £14 and one card got £0?
Going forwards as these payment plans are ending... am I best just not paying any of them for a couple of months before applying for the DRO? Just cut all contact with them?
Over the last 6 months I had a plan with one card for £14 a month and the other card settled for no payment for 6 months with a view to things hopefully being better after the 6 months (they aren't) . On the Bounce Back Loan I've been on one of the "Interest Only" periods for the last 6 month.. around £30 a month. Basically with each one I've paid the minimum they will accept. Could this be considered preferential payment in any way since BBL got £30, one card got £14 and one card got £0?
Going forwards as these payment plans are ending... am I best just not paying any of them for a couple of months before applying for the DRO? Just cut all contact with them?
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Comments
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From memory I believe it`s 3 months bank statements, you self certify your assets, and your bank statements should back that up, no one does a home visit, your £90 fee does not buy much of the Insolvency services time.
You are best off treating all creditors equally, and that means you don`t pay any of them, so best to stop paying now, and in a couple of months start the process.
You apply for a DRO via an intermediary, there has been a recent shake up in those who provide this service, the .Gov website can provide an up to date list here -
How to get a Debt Relief Order (DRO) - GOV.UK (www.gov.uk)
I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing [email protected]. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter1 -
sourcrates said:
You are best off treating all creditors equally, and that means you don`t pay any of them, so best to stop paying now, and in a couple of months start the process.0 -
Squeaky_Kleen said:sourcrates said:
You are best off treating all creditors equally, and that means you don`t pay any of them, so best to stop paying now, and in a couple of months start the process.
Where on earth did you get that from ?
You`ve been reading far too many scare stories, no one makes anyone bankrupt for consumer debt, that`s why we have debt collectors.
Your accounts would need to be subject to non payment for a good 3 months before the collection process kicked in, that would consist of letters and phone calls, this may go on for a few weeks, then your accounts may be passed to debt collectors, who will run through there selection of template letters with you, another 6-9 months, after which they may be sold on, ignored, written off, chased or any combination of the latter.
But I can say with a degree of certainty they will not be pertitioning for your bankruptcy.I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing [email protected]. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter1 -
sourcrates said:Squeaky_Kleen said:sourcrates said:
You are best off treating all creditors equally, and that means you don`t pay any of them, so best to stop paying now, and in a couple of months start the process.
Where on earth did you get that from ?
You`ve been reading far too many scare stories, no one makes anyone bankrupt for consumer debt, that`s why we have debt collectors.
Your accounts would need to be subject to non payment for a good 3 months before the collection process kicked in, that would consist of letters and phone calls, this may go on for a few weeks, then your accounts may be passed to debt collectors, who will run through there selection of template letters with you, another 6-9 months, after which they may be sold on, ignored, written off, chased or any combination of the latter.
But I can say with a degree of certainty they will not be pertitioning for your bankruptcy.0 -
The collection process is the same whoever you are, or whatever you may owe.
You don`t need to worry about anything like that, its usually only HMRC that will use those kind of tactics, the rest of the world uses debt collectors.I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing [email protected]. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter1 -
sourcrates said:The collection process is the same whoever you are, or whatever you may owe.
You don`t need to worry about anything like that, its usually only HMRC that will use those kind of tactics, the rest of the world uses debt collectors.0 -
Presumably you transfer money to him each month, which will be evidenced by your bank statements?The person who has not made a mistake, has made nothing0
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RAS said:Presumably you transfer money to him each month, which will be evidenced by your bank statements?0
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Talk to Business Debtline - they are the experts on bounce back loans and insolvency1
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I have an additional question. I have approx £680 monthly incomings and approx £650 allowable monthly outgoings. My bank account is fluctuating between a balance of £500 and £1200 generally. (This is a separate account to my overdrawn account which I've stopped using). Will this be acceptable?
I'm keen to keep my £500 cushion in case of emergencies, but will they say I should have spent this £500 on my debts?0
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