DRO orders

BadgerBadger1 · 4 June 2018 at 11:50AM

Hi everyone
I am being sued by someone (individual for 15k) if thry win and my debts are under in total under can this be included in a DRO? CAB and other intermediaries are unsure on this point.

Also, I know that DRO's are done via intermediaries but does have Any one have a copy of the application form / template/ questions etc ?

Thanks in advance

National_Debtline · 4 June 2018 at 1:40PM

Hi there and welcome to MSE,

If this was a personal/ family loan then it can be included in a DRO whether there is a CCJ or not. The only issue may arise if this is for something else and there is an element of compensation in this £15k or if there is an issue of fraud, that may be causing a problem.

If you wish to talk more about a DRO then call one of the free debt charities to be assessed. Generally speaking they will check you meet the criteria with a budget plan and discuss your debts and assets. If this appears ok, then can discuss the application process in more detail. We have a factsheet that may help you - https://www.nationaldebtline.org/EW/factsheets/Pages/debtrelieforders/droadvice.aspx

Laura
@natdebtline

BadgerBadger1 · 4 June 2018 at 1:44PM

Luara.

You say compensation could cause problems. Could you please expand on this.. I have looked at the .Gov website and have seen this:

Some types of debt won!!!8217;t be covered by a DRO and you will still have to pay them.

These are:

child maintenance, or anything you owe under family proceedings
student loans
budgeting and crisis loans from the Social Fund
debts secured against an asset you own
fines for drug offences
damages or fines a court has ordered you to pay
unpaid TV licence fees
any debts you incur after the DRO is granted

BadgerBadger1 · 4 June 2018 at 1:56PM

I have taken the below from insolvency website but can't see anything about compensation other then damages (I assume your mean the same thing)

Insolvencydirect.bis.gov.uk/technicalmanual/Ch37-48/chapter46/Part%201/Part%201.htm#46.22

46.15 Court judgments

Where a debtor has committed an act that may result in another party making a legal claim (or similar) (for example, causing a personal injury !!!8211; though see paragraph 46.22), the liability in this regard can not be a qualifying debt until there is a judgments (for example, a court order or judgments) ordering an amount to be paid.

46.16 Secured debts

A debt is not a qualifying debt to the extent that it is secured. There is no special meaning to the term !!!8220;secured!!!8221; in the legislation.

46.17 Excluded debts

The legislation provides that certain debts are automatically excluded from a DRO [note 19], as detailed in paragraphs 46.18 to 46.22.

46.18 Excluded debts !!!8211; fines

Any fine imposed for an offence (including an obligation to pay a lump sum or to pay costs) is an excluded debt.

Fine is defined as !!!8220;any pecuniary penalty or pecuniary forfeiture or pecuniary compensation payable under a conviction!!!8221; [note 20].

This definition may be taken to include a compensation order made under the Powers of Criminal Courts (Sentencing) Act 2000 [note 21].

46.19 Excluded debts !!!8211; obligations under family proceedings or CSA assessments

Any obligation (including an obligation to pay a lump sum or to pay costs) arising under an order made in family proceedings or any obligation arising under a maintenance assessment made under the Child Support Act 1991 is an excluded debt [note 22].

46.20 Excluded debts !!!8211; confiscation orders

Any obligation arising under a confiscation order made under the following Acts:

Drug trafficking Offences Act 1986, section 1, or
Criminal Justice (Scotland) Act 1987, or
Criminal Justice Act 1988 section 71, or
Proceeds of Crime Act 2002, parts 2, 3 or 4
is an excluded debt [note 23].

46.21 Excluded debts !!!8211; student loans

Any debt or liability to which a debtor is or may become subject in respect of any sum paid or payable to the debtor as a student by way of a loan and which he/she receives before or after a debt relief order is made in respect of him/her is an excluded debt [note 24]. In this context, !!!8220;loan!!!8221; means a loan made pursuant to, either the Teaching and Higher Education Act 1998 or the Education (Student Loans) Act 1990, and includes any interest on the loan and any penalties or charges incurred in connection with it.

46.22 Excluded debts !!!8211; damages

Where the DRO application is made on or after 6 April 2010, any debt which consists of a liability to pay damages for negligence, nuisance or breach of a statutory, contractual or other duty, or to pay damages under Part 1 of the Consumer Protection Act 1987 (which deals with product liability) !!!8211; being in either case damages in respect of the death or personal injury (including any disease or other impairment of physical or mental condition) to any person is an excluded debt. [note 25].

46.22A Excluded debts !!!8211; Social Fund loans

(Added March 2012)

Where the DRO application is made on or after 19 March 2012 the liability to repay monies owed to DWP regarding a budgeting or crisis loan (granted from the Social Fund) is an excluded debt.

Note:

BadgerBadger1 · 5 June 2018 at 6:14AM

Can anyone else advise.......

BadgerBadger1 · 5 June 2018 at 10:43AM

Can anyone clarify if the compensation mentioned is strictly limited to the damages that are shown as excluded on the insolvency link above ?

BadgerBadger1 · 6 June 2018 at 11:10AM

Any one at all.....

National_Debtline · 6 June 2018 at 6:26PM

Hello again and apologises for the delayed response,

It may help if you can clarify exactly what this money is owed for, as it is normally easier to deal in specifics.

But to try and answer your question in more detail, if there was an element of personal injury/ compensation in the money that you owe to someone else, that is normally excluded from the DRO. If you were to apply for a DRO then you would be asked for more details about this, especially if the debt is a mixture of compensation, costs, loss of earnings etc. Some of the debt may be able to be included, and some may be excluded. I hope that helps.

Laura
@natdebtline

DRO orders

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