DRO Accepted but questions...

dustiebustie78

After meticulously going through my bank statements over the last month or so, and seeing the money coming in, and the money going out in terms of rent, council tax, bills, etc, I did the expenditure form with StepChange it left me in a negative. I applied for a DRO via StepChange/Money Wellness and was accepted today. I just have a couple questions if okay..., 

One of my creditors is housing benefit overpayment. Currently, I am paying it back through the allowance they give me to pay my rent. So instead of paying a reduced amount to rent account because of housing benefit, I pay full rent and they keep the allowance to go towards the arrears. It works out as £16.87 I think. Now it's on the DRO, will they still keep taking payment? Or will I be entitled to that payment towards my rent again? I have been putting money aside to pay the arrears off as I wasnt sure what was going to happen. 

Klarna was also one of my listed creditors and that leaves my account automatically via card payment method. Will it not leave my account anymore now? or will it still keep taking it as its an automatic payment?

Very also has £900 on the DRO but I actually owe a little bit more than that. I am happy to pay what I owe, its on a BNPL and I have 10 months ish to pay but seeing as its on the DRO now, how will that work?

Thank you so much in advance 

fatbelly

All listed qualifying debts are frozen and you must not make payments to them.

There are some exceptions but none are those you mention.

I think you are saying that you still have a HB award and that they make a deduction against an overpayment. Well, that must stop and you should make sure it does. And you should not make separate payment to it

Klarna may be slow to stop taking payment so contact your bank to insist it stops

If the Very debt is incorrect then let the Insolvency Service know asap. I doubt it will cause any problem but the DRO should be accurate

dustiebustie78

fatbelly said:

All listed qualifying debts are frozen and you must not make payments to them.

There are some exceptions but none are those you mention.

I think you are saying that you still have a HB award and that they make a deduction against an overpayment. Well, that must stop and you should make sure it does. And you should not make separate payment to it

Klarna may be slow to stop taking payment so contact your bank to insist it stops

If the Very debt is incorrect then let the Insolvency Service know asap. I doubt it will cause any problem but the DRO should be accurate

Thank you, 

With HB award, do I call my council and let them know? They're shut over the weekend now so will have to call them Monday. 

With Klarna, I'm not sure I can cancel card payments, do you think it would be okay to do cancel payments within the app?

And with Very, do I contact the Insolvency Service or my debt advisor I used to help with the application?

Again, thank you so much for your help. 

fatbelly

1. Yes, definitely. Councils are big organisations with multiple departments and the chances of the Insolvency Service email reaching the right person are slim.

2. Yes you can.

https://www.moneysavingexpert.com/banking/recurring-payments/

3. Insolvency Service

dustiebustie78

fatbelly said:

1. Yes, definitely. Councils are big organisations with multiple departments and the chances of the Insolvency Service email reaching the right person are slim.

2. Yes you can.

https://www.moneysavingexpert.com/banking/recurring-payments/

3. Insolvency Service

Thank you so much for your help. I will get on these today and Monday.