DRO Approved - What Happens Next

Jamie_37

Thankfully, good news was received at 11:30am today when the Insolvency Service approved my DRO, not something I'm particularly proud about but something I will learn from and already have.

Question I have is what happens now in regards to the 12 month DRO period, will the OR be sporadically checking in on me ?? Will I be asked for a bank statement during the 12 months to ensure all is above board ??

Do things like birthday/Xmas money or cash lump sums from friends/family need to be declared or are these classed as gifts ?? Finally my assets are very minimal but I do have £900 in a savings account (fully declared to the OR) would this savings account need to stay below £2,000 for the duration of the 12 months as to not break the asset limit ??

Thanks for any answers on this

ManyWays

Nothing at all will probably happen during the year and there are no checks at the end.

In theory you should tell the Insolvency Service if you get given any cash, in practice I wouldnt bother if it is less than £100! 

Jamie_37

Ok, thanks for that, upon reading the email from the IS I'm seeing the word "investigation" a lot which is what leads me to the question.

I get bank transfers for things like birthdays and Xmas (for more than the value you mentioned) I'm also a registered carer for my mother and she'll sometimes transfer me a sum of money to buy her things when I'm out and about or maybe a monthly sum towards travel costs as I do a lot of miles with her in the car.

I don't want to be contacting the OR every month to discuss these transactions, unless I have too, I was just wondering where we draw the line.

sourcrates

Try not to overthink things, when the DRO fee was £90 it didn`t buy much of the insolvency service`s time, now they are free, it buys even less, so there are no checks on you, no bank statements needed, in fact you won`t hear from them again.

Try and keep your assets below the 2k limit, however money you get and then spend I would not worry about, as long as you don`t get silly, ideally you never want to be contacting the DRO unit again.

In 12 months your DRO automatically completes, no fanfare, no certificate, just job done.

johnjs88

Jamie_37 said:

Thankfully, good news was received at 11:30am today when the Insolvency Service approved my DRO, not something I'm particularly proud about but something I will learn from and already have.

Question I have is what happens now in regards to the 12 month DRO period, will the OR be sporadically checking in on me ?? Will I be asked for a bank statement during the 12 months to ensure all is above board ??

Do things like birthday/Xmas money or cash lump sums from friends/family need to be declared or are these classed as gifts ?? Finally my assets are very minimal but I do have £900 in a savings account (fully declared to the OR) would this savings account need to stay below £2,000 for the duration of the 12 months as to not break the asset limit ??

Thanks for any answers on this

No the OR will not be checking on you.  I believe that only applies for IVA's and Bankruptcy.

I'm 6 months in and have had zero contact with the Insolvency Service or Money Wellness so far.

I believe large lump sums need to be declared, little sums like £100 shouldn't be an issue

You declared the £900 that's good, if you tried to hide it then it could affect the DRO / land you in legal hot water.

I think if you can prove the £900 is for essential expenses then it wouldn't be considered an asset.

As long as you stick to the restrictions of the DRO you will be debt free in 12 months.

It may take a few weeks for all your creditors to be notified though so you may still get payment demands until then.

You can always email the company a copy of your DRO approval if they don't stop or they threaten further action.