Can they revoke DRO from extra money?

LisaMarieMMA
LisaMarieMMA Posts: 13 Forumite
in IVA & DRO
I’m only getting Carers Allowance and Universal Credit and sometimes get a bit of extra money from family to help me but there’s never anything left over each month. I just wanted to ask, it’s my birthday soon and will be getting a bit of money. Nothing life changing just a few hundred but would they stop my DRO if it goes in my bank account? It’s only a one of as it’s birthday money but don’t really know how it works. I’ve just read that if you have more than £50 left over each month they can revoke the DRO.

Comments

  • Annie35
    Annie35 Posts: 385 Forumite
    Name Dropper First Post Combo Breaker First Anniversary
    Could you ask for cash? You can still spend it right :)

    I'm in a similar situation myself
  • LisaMarieMMA
    LisaMarieMMA Posts: 13 Forumite
    Hi Annie,

    Sorry i didn’t mention it is cash i’ll be getting but i wanted to put it in my account to spend it. I shop online etc
  • Annie35
    Annie35 Posts: 385 Forumite
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    Debt camel has a relevant article, it seems you can have assets upto 1000£ but much over could mean the OR considering revoking the DRO.


    https://debtcamel.co.uk/dro-income-up/
  • sourcrates
    sourcrates Posts: 28,834 Ambassador
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    Hi,

    I would not worry about it, you are not checked up on, and you are allowed £1000 in assets (cash), the £50 surplus only applies to regular income.

    Revocation happens at £1850.

    Spend your money, enjoy your birthday, forget about it.
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  • fatbelly
    fatbelly Posts: 20,454 Forumite
    Name Dropper First Anniversary First Post Cashback Cashier
    LisaMarieMMA wrote: »
    I’m only getting Carers Allowance and Universal Credit and sometimes get a bit of extra money from family to help me but there’s never anything left over each month. I just wanted to ask, it’s my birthday soon and will be getting a bit of money. Nothing life changing just a few hundred but would they stop my DRO if it goes in my bank account? It’s only a one of as it’s birthday money but don’t really know how it works. I’ve just read that if you have more than £50 left over each month they can revoke the DRO.

    This wouldn't be regarded as surplus income, it would be regarded as a lump sum:
    This applies where a debtor receives a lump sum during the moratorium period after a DRO has been made.

    Where a lump sum is received and the value of the debtor’s total property (including the lump sum) does not exceed £1,000 no action will be taken.

    Where a lump sum is received and the value of the debtor’s total property (including the lump sum) is between £1,000 and £1,990 the Official Receiver will consider the circumstances of the case and may not revoke the DRO.

    Where a lump sum is received and the value of the debtor’s total property (including the lump sum) exceeds £1,990 the Official Receiver will consider the circumstances of the case but it is likely the DRO will be revoked.

    Where a DRO is revoked and the debtor remains insolvent the debtor can use the lump sum to enter a different insolvency remedy e.g. bankruptcy/IVA.
  • LisaMarieMMA
    LisaMarieMMA Posts: 13 Forumite
    sourcrates wrote: »
    Hi,

    I would not worry about it, you are not checked up on, and you are allowed £1000 in assets (cash), the £50 surplus only applies to regular income.

    Revocation happens at £1850.

    Spend your money, enjoy your birthday, forget about it.

    Thank you, i will try :D
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