Bankruptcy or IVA or DRO?

Brie

Bank accounts are pretty obvious on a credit history. Unless you are trusting your mate Andrew to hold the million for you then you wouldn't get a DRO.

bery_451

https://forums.moneysavingexpert.com/discussion/comment/81859788#Comment_81859788

Obviously UC will be reduced or even stopped.

Opening up a DRO agreement will stop UC benefits?

many of the big banks run an automatic sweep of the Insolvency Data base so they find out anyway

what happens after they find out for someone with no overdrafts?

Not specifically, but any good debt adviser does not usually have a problem showing you have less than £75 a month spare if your only income is UC.

What incomes and expenditures are usually protected under DRO and who monitors this throughout the year and this monitoring work is free?

The debt adviser makes sensible checks.

What data/records/databases the debt adviser has access to? just your Experian credit report?

Your car insurance would probably look unusually high and would be queried!

They will see this on your bank statement or the debt adviser has access to car insurance databases?

The debt adviser would spot any transfers to and from other accounts. 

Only from accounts you listed on the DRO application or the debt advisor has access to all your private financial records in real time during the 12 months. For example if I sell a car for £10k and make the deposit the debt adviser can see this data live?

bery_451

https://forums.moneysavingexpert.com/discussion/comment/81859989#Comment_81859989

And the IP has three years to make decisions on hidden assets from the date when they discover them

Who is the IP? The debtor? So the debtor has 3 years to declare hidden assets after agreeing to a DRO otherwise its a criminal offence you mean?

There was a recent query here from someone who discovered they were still on the Insolvency Register after 12 years. They'd not cooperated with their Insolvency Practitioner who'd simply maintained a restriction. So they now had to talk to someone they'd tried to avoid for over a decade, and make 12 year's worth of financial disclosures, pay any dues plus penalties etc.

I thought its 6 years correct?

bery_451

https://forums.moneysavingexpert.com/discussion/comment/81860103#Comment_81860103

Okay banks scan your experian credit month every day or month to see if your on the insolvency register or scan the insolvency register itself and if you have more than £75 cash liquidity after each month in your account then they will auto notify your debt adviser?

ManyWays

Opening up a DRO agreement will stop UC benefits?

No, getting a well paid job will

what happens after they find out for someone with no overdrafts?

Many banks will close the account

What incomes and expenditures are usually protected under DRO and who monitors this throughout the year and this monitoring work is free?

No one. It is a criminal offence not to tell the Insolvency Service of significant changes.

What data/records/databases the debt adviser has access to? just your Experian credit report?…

They will see this on your bank statement or the debt adviser has access to car insurance databases?…

Only from accounts you listed on the DRO application or the debt advisor has access to all your private financial records in real time during the 12 months. For example if I sell a car for £10k and make the deposit the debt adviser can see this data live?

If you are seriously thinking of trying to not report something in a DRO, I suggest you think again. I have no intention of trying to coach you into how to get away with this.

luvchocolate

Op there are posters on here who work for the IS

I politely suggest you take their advice

Brie

https://forums.moneysavingexpert.com/discussion/comment/81860715#Comment_81860715

No. The fact that you have £200 or whatever in your account won't trigger anything as that has nothing to do with your income or your expenses. The £75 is what you're allowed to have excess in your budget so you could slowly be saving some money up in case the washing machine or car dies.

Banks (or anyone else) don't scan your credit report every month. They don't care unless they have a reason to check how good/bad a credit risk you are - i.e. you apply for a credit card or want a new mobile contract.

Your debt adviser doesn't do any checks during the year other than perhaps to ask you after 6 months if you're ok. Most of my checks were more to do with mental health and to give reassurance rather than making sure that the individual is being good.

bery_451

https://forums.moneysavingexpert.com/discussion/comment/81861584#Comment_81861584

Yes I am asking these questions because I do not believe in a free lunch offered by debt helpers & advisers who say they will help for free but nothing is free and there's always a cost hence on why I am asking do they have access to all my private/sensitive data that they could sell my data to other 3rd party companies who will just hassle me. Like for example facebook/instagram, they claim their services are free but they sell your private data for £billions behind the scenes.

So I want to exactly know what of my private/sensitive data they have access to if I decide to go ahead with whatever debt help service? From there relay the answers here to my friend so he decides whether to go ahead.

bery_451

https://forums.moneysavingexpert.com/discussion/comment/81860809#Comment_81860809

So opening a DRO will close existing bank accounts even if there's no overdraft on them?

Is it a criminal offence for these so called debt advisers/helpers to sell my private sensitive data to other 3rd party companies without my consent?

I am asking all these questions to make sure my private sensitive data is protected by laws not misused for profit because I like I said earlier I do not believe in a free lunch. When a bankrupty costs over £600quid then how the hell can a DRO be free £0? I am just suspicious of this hence a lot of questions asked above to be on the safe side.

ManyWays

Most debt advisers who work for charities (Citizens Advice, Stepchange, National DebtLine, Business Debtline, CAP etc) are poorly paid who actually do it because they think its a socially useful job.

You may not agree with all of their advice. But none of those organisations sells your date for anything. You are in an odd paranoid world if you think they are making any money, let alone billions, from this.