Debt relief help please

Lucie1994 · 26 April 2018 at 7:45PM

So I’m currently in the process of applying for a DRO, I’ve spoken to step change & they sent me out some forms To sign and send back to them so my application hasn’t actually been processed yet but today I recieved a cheque From Lloyd’s for £1126.34 for a refund of charges they shouldn’t of taken from September 2013 - March 2015. Now I’m wondering how this will affect my application my debts are around 16000, if I declare it will I have to put it towards debts? Or if I didn’t declare it would it get found out? ( please don’t judge I have 2 kids & this could go towards some much needed work in our home) if I put my application on hold and offered a token payment for a few months & then re applied for my DRO would that be allowed? Has anyone had anything happen similar? Or any advice on what will happen? Thank you.

sourcrates · 26 April 2018 at 8:29PM

Your not in the DRO yet, so you do not have to declare it to anyone, nor are you yet bound by its terms.

It would be different if you were, but your not.

You are allowed £1000 of assets anyway, go spend money on your kids and house and crack on with the DRO.

Saying that, your not a homeowner are you ?

Lucie1994 · 26 April 2018 at 9:29PM

Thank you for the reply, no im not a homeowner but i live in a house owned by my dad so its kind of mine but not legally so any work,decorating ect is down to me.

sourcrates · 26 April 2018 at 9:54PM

Lucie1994 wrote: »

Thank you for the reply, no im not a homeowner but i live in a house owned by my dad so its kind of mine but not legally so any work,decorating ect is down to me.

Oh good, that’s ok then.

fatbelly · 27 April 2018 at 4:11PM

That lump sum may not have been fatal to the DRO if you received it while in the DRO (the rules have some flexibility)) but at present it will stop your application being made as there is an asset limit of £1000. (cars have their own separate asset limit). If the £1126 is your only asset and you do not have savings or a collection of antique jewellery that you are declaring then once you pay your £90 you are only £36 over the limit and I expect the next time you go shopping that will disappear.

Edit: Don't waste your time with token payments but in the run-up to a DRO you should be treating creditors equally and, in my book, the best way to do that is to pay them all nothing.

Lucie1994 · 27 April 2018 at 4:57PM

Thank you for replying, so say if i did spend some would anyone question what it was spent on? Or where its gone? & i havent been paying any creditors anything, how long is it roughly before they pass my debts on to a debt collection agency do you know?

fatbelly · 27 April 2018 at 5:03PM

Debt Collection Agencies are nothing to worry about - you just get letters from a different place. Sounds like you are in the very early stages if you haven't had any yet.

You still have lots of things to spend on - tv licence, food, clothes, travel costs, your phone, haircuts. None of these are going in the DRO and you only need to get below £1000 and your £90 has to come from somewhere.

Debt relief help please

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