bankruptcy and a DRO?

johnny73

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 

sourcrates

No, but you can fail the DRO and declare yourself bankrupt.

fatbelly

Sounds like the intermediary may have messed up. Can you say what the new debts are, how much and why they were missed?

johnny73

approx £6K, non priority debts. one was accidentally omitted from the DRO application, the others werent known at the time of the application 

johnny73

sourcrates said:

No, but you can fail the DRO and declare yourself bankrupt.

how do we fail the DRO? thanks 

fatbelly

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.