DRO - which intermediary and breathing space?

fatbelly

stu12345_2 said:

fatbelly, what are the SFS figures for the allowable expenses

Come on. You know I can't post those.

stu12345_2

oh well, i will use what i found on the net as guidelines, its just that  I read some DROs are rejected cos the applicant is fine within almost all their expenses, but if they are over one of them , it can be refused, but if the applicant was told in advance that it would be refused, it would help if they were told they must cut back on a certain expense.
lets say clothing is £20, but they spend £40,  or leisure is £40 and they spend £70, i think they should be told by the CAB guy  that it will fail in advance before they pay the £90.

fatbelly

stu12345_2 said:

oh well, i will use what i found on the net as guidelines, its just that  I read some DROs are rejected cos the applicant is fine within almost all their expenses, but if they are over one of them , it can be refused, but if the applicant was told in advance that it would be refused, it would help if they were told they must cut back on a certain expense.
lets say clothing is £20, but they spend £40,  or leisure is £40 and they spend £70, i think they should be told by the CAB guy  that it will fail in advance before they pay the £90.

Debt advisers have access to the SFS figures and would not submit an application if the figures were outside them without explanation. 

The Insolvency Service accept that the intermediaries have done the detailed examination of the finances and so it would be unusual to be rejected on those grounds.

Very few DRO applications are rejected

https://questions-statements.parliament.uk/written-questions/detail/2021-03-22/172963/

and I understand the most common reason is that the intermediary did not uncover the fact that the debtor had had a DRO  in the past 6 years

stu12345_2

thanks wierd how an allowance expense is made for smoking in a DRO but not in bankruptcy.just something of interest

Sonic101

Hi there
I had a DRO last year and from what I remember your budget looks fine. The only thing I would say is that ‘holiday’ probably isn’t an allowable expense and you have no emergency fund, so I would remove holiday allocate the £20 to that instead.
in any case the intermediary will go through your budget with you in detail and let you know if anything is too high or not allowed, so don’t worry.

ToxtethO'Grady

Trigger figures are just that, they trigger a question,  why they are higher than average and if they are prove it.

Someone who receives PIP can have very high cost in their food and housekeeping and if their health professional can write something about why that is, no problem in a DRO. The intermediary does the 'inestigation' and if they are happy the DRO team at the Insolvency Service are happy or will ask for proof.

Bankruptcy they can say "we only allow x amount here prove why it has to be more"

With any insolvency I always say to clients "prove it" like legal action if you can't prove it then it will cause an issue and more questions.