bankruptcy and a DRO?

if someone already is in a DRO but new debts have come to light and cant now be added to the DRO ( the total debts with new ones is still below £30K), can they apply for bankrupcty to deal with the new found debts and have a DRO and bankruptcy at the same time?
many thanks 

Comments

  • sourcrates
    sourcrates Posts: 28,512
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    No, but you can fail the DRO and declare yourself bankrupt.
    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-letter
  • fatbelly
    fatbelly Posts: 20,201
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    Sounds like the intermediary may have messed up. Can you say what the new debts are, how much and why they were missed?
  • johnny73
    johnny73 Posts: 4
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    approx £6K, non priority debts. one was accidentally omitted from the DRO application, the others werent known at the time of the application 
  • johnny73
    johnny73 Posts: 4
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    No, but you can fail the DRO and declare yourself bankrupt.
    how do we fail the DRO? thanks 
  • fatbelly
    fatbelly Posts: 20,201
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    There's no mechanism for failing as such. It assumes all debts are included at the outset.

    Of course mistakes do happen and I've seen them. But in several hundred applications I don't think I personally made one.

    It's why I was exploring what they were.

    If the creditor is already listed, then legislation allows the amount to be changed while the dro is in progress. It doesn't matter that it's a different account. You will see from your dro paperwork that account numbers are not included.

    If the mistake was made by the Intermediary then their professional insurance should pay the debt. I'm afraid I have seen that happen.

    If it's your mistake then you could just tell the creditor you are in a DRO and leave them to assume the debt is in there. With debts changing hands so often creditors are used to not gettingvpaperwork from the IS. I've seen that work too.

    If all else fails you could try requesting termination of the DRO. I've not seen that work. Btw bankruptcy costs £680 and the rules are different so there may be other effects on you. I would not rush to kill off the dro.
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