3 month potential DRO delay application

stu12345_2

I'm applying for debt solution via Christians against poverty. the DRO is the likely solution.
they said they need the most accurate and stable income and benefit details before they proceed with DRO.application.

they problem is my old employer is paying me out my final wage, final holiday pay and a nest auto enrollment pension refund over a period of 2 months, via payroll run dates over 2 months.

this is resulting in a zero£ universal credit award.due to the HMRC using live data income and combini g it with my new employer wages, resulting in too high earnings for the periods.

nothing will  stabilise until September 10th(UC monthly  award date)where no more money will come from old employer.

CAP said they may have to put my debt solution in hold,( they have taken 3 weeks already  to collect all my data and info)cos looking at it without examining  it very carefully would suggest a dmp cos of 2 lots of wages.but in reality I only have one employer now.

and the UC award isn't stable, even though a benefit calculator and using  my only  employer wages  and expected UC amount are known can show the total income that will be due.

I spoke to them on  phone the other day at length and the amount of note taking by them was a lot. I send them screenshots of everything via their net cloud app, wage slips, bills, resignation letters, emails from old employer, UC communications, etc
I asked them what happens, they said there is a lot of info, and I asked them not to get confused into making the wrong decision.

they said their outcome will be in a couple of weeks, but they may not understand the amount of hassle this old employer is causing 

they also suggested I can complain and tell them that their solution is potentially wrong as it's using income info that is changing( old employer money)

they said ask for a 3 month hold instead.

is this the normal, how much damage is this old employer wages doing, eg they are preventing a UC award, they are preventing a DRO application to be submitted 

Brie

DROs take months to get in place unless the person taking one has ALL the info to hand and a stable income/benefit situation.  It might be possible to get most of it set up in 1 session but I've yet to see anything remotely like that happen.  6 - 12 months is more common.  Most of that time is getting confirmation from creditors about amounts owing, checking and rechecking credit histories, confirming what's happening on 3 months worth of bank statements.

To think that this is something you can get done in a couple of weeks is massively over optimistic.  Complications such as unstable income and 2 individuals in a household trying to get things done at the same time are just going to add a lot of time to the process.  

stu12345_2

got email this afternoon saying CAP have all the info they need  from me and wife as debt coach collected our creditors details last Tuesday from us

sourcrates

Gosh, mine was suggested, applied for, checked, and fee paid within 3 weeks, it was active 24 hrs later.

Think things have gone backwards since 2016.

fatbelly

sourcrates said:

Gosh, mine was suggested, applied for, checked, and fee paid within 3 weeks, it was active 24 hrs later.

Think things have gone backwards since 2016.

And the more the Money and Pensions Service interfere, the worse it will get.

This is not the fault of the Insolvency Service, who perhaps should be asking questions

Brie

fatbelly said:

sourcrates said:

Gosh, mine was suggested, applied for, checked, and fee paid within 3 weeks, it was active 24 hrs later.

Think things have gone backwards since 2016.

And the more the Money and Pensions Service interfere, the worse it will get.

This is not the fault of the Insolvency Service, who perhaps should be asking questions

The regulation of all the various debt agencies makes their job much more difficult, more to prove, more to have documented.  Not helped either by some creditors playing silly butters and not providing information required.  And getting info about CCJs?!  Impossible!!!

stu12345_2

I think wife and I are getting a DRO application.
I explain, yesterday wife gets a call from link financial saying we haven't heard from you since you explained your income and expenses to us in June and you were using money wellness.
she said  I am using Christians against poverty now, great they said , can you prove it. they said get CAP to email us 

I called CAP today, and explained, they agreed with me if the solution is a dmp then they Will contact our creditors and only then..

if it's insolvency then it's the official receiver that will contact creditors., not CAP

I said when is our solution, they said your CAP advisor will call us on 30th July.

I went on to say it can't be a dmp, we don't have any excess, it can't be an IVA, we have no excess and no property to protect, it can't be bankruptcy as we don't have the funds to pay for it and I may lose my car as I can walk to work , it's 10 mins walk.

it can't be £1 a month payments as that just delays the inevitable.( they agreed and said they never ever recommend a £1 plan)

i said how can you have a solution when I'm still due one more holiday pay from old job next week which is preventing us getting universal credit  at mo.

She said they can work things out based in no more income from old job, as I left it 2 months ago, and base it on the one part time job I only have.now, the 2 part time jobs my wife has and run a benefit award calculator based on that.

she said at mo we have £0 surplus a month if you remove the final wage from old job just use our current jobs and the UC calculator.

I said can you do that, she said, yes and  you will be pleasantly happy with what
 we propose for you and wife.

roll on the 30th July, I hate suspense

JonVarnas

sourcrates said:

Gosh, mine was suggested, applied for, checked, and fee paid within 3 weeks, it was active 24 hrs later.

Think things have gone backwards since 2016.

That was about the same for me with Stepchange in 2020 and that was in the middle of COVID

stu12345_2

JonVarnas said:

sourcrates said:

Gosh, mine was suggested, applied for, checked, and fee paid within 3 weeks, it was active 24 hrs later.

Think things have gone backwards since 2016.

That was about the same for me with Stepchange in 2020 and that was in the middle of COVID

Jon you misunderstood the delay for my application, it's cos universal credit keeps going to £0 award due to final wages and holiday pay being paid out over 2 months from old employer.

this when added to my new employers wages makes it appear to UC I'm more well off than i am truly am for 2 months.( cos UC  use live data from HMRC the day before the monthly award)

thus the debt management company can't submit application until UC is properly awarded when my remaining wage and hol pay is fully paid out from old employer.

but if you read my post from yesterday, it appears, the application is going ahead hopefully, based on my only current employers and wifes wages and a benefit calculation of what UC we should get 

I didn't know they could do it before the true UC award.
on the 30th July I will find out if it is a DRO we are getting submitted , as it's a dro or bankruptcy as the only 2 suitable debt solutions now 

note the only thing worrying us is we cleared a couple of the creditors back in February and April for a couple of hundred quid as we we're earning much more back then  and decided to take up their offers.

( our original plan was to  save up and pay off creditors that made us very good offers over the next year or 2)

we didn't know my job would change and have to go down the insolvency route

the debt charity said the amounts are small in comparison  to the overall amount of our debts and not to worry about the potential preferential treatment 

I hope the insolvency practitioner thinks the same way as the debt charity making the application.

fatbelly

The Insolvency Service pretty much nods the DRO through once the Intermediary submits it. They just do an insolvency check and a credit file check.


I don't understand why Intermediaries these days make such a meal of it. Well, I sort of do. It's systematic destabilization of the industry by its main funder

A funder, I should add, who is neatly avoided by the CAP funding model

stu12345_2

how CAP is funded and how it spends it money 
https://register-of-charities.charitycommission.gov.uk/charity-search/-/charity-details/3998633