Debt Relief Orders (DRO) - Information & help thread

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  • Hi all


    After a bit of advice. My wife has a DRO which has been granted by the Insolvency Service. One of the creditors is Very and we filled in the exact amount from their statement when we made the application. However we have since found another account from Very in her maiden name which has £375 on it. I looked at the DRO note from SC which said any debts which weren't included in your DRO cannot be added and if the total is still under £20k (which it is) then you will have to find a way to repay these debts. I made a payment from my account but Very have said this breaches the DRO and will return it. Now the sums don't match as the amount on the DRONOTE will be £375 less. What can I do about it ? The total even with the £375 on is under the £20k (by a few hundred pounds) and there are no other debts.


    When the DRO ends the original sum will be written off but what about the £375 which will still be outstanding from the account in her maiden name, will this be written off too ?


    Confused here as I thought we had everything right and this just muddies up the waters a bit.


    Also, still getting monthly statements from all of the creditors where they are still adding interest, if this continues it will go over the £20k limit but the debt was under when it started. From my limited knowledge any amounts added after the DRO started cannot be enforced...is this right.
  • sourcrates
    sourcrates Posts: 28,647
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    Billy12345 wrote: »
    Hi all


    After a bit of advice. My wife has a DRO which has been granted by the Insolvency Service. One of the creditors is Very and we filled in the exact amount from their statement when we made the application. However we have since found another account from Very in her maiden name which has £375 on it. I looked at the DRO note from SC which said any debts which weren't included in your DRO cannot be added and if the total is still under £20k (which it is) then you will have to find a way to repay these debts. I made a payment from my account but Very have said this breaches the DRO and will return it. Now the sums don't match as the amount on the DRONOTE will be £375 less. What can I do about it ? The total even with the £375 on is under the £20k (by a few hundred pounds) and there are no other debts.


    When the DRO ends the original sum will be written off but what about the £375 which will still be outstanding from the account in her maiden name, will this be written off too ?


    Confused here as I thought we had everything right and this just muddies up the waters a bit.


    Also, still getting monthly statements from all of the creditors where they are still adding interest, if this continues it will go over the £20k limit but the debt was under when it started. From my limited knowledge any amounts added after the DRO started cannot be enforced...is this right.


    Hi,


    Billy, don't muddy the waters any further, wait until the DRO completes, then tackle the outstanding very debt, there is no point getting wound up about it now, its only £375 it sounds like they are not going to chase it, you don't need to report it, but she will still be liable for it afterwards, so let sleeping dogs lie for now.


    Don`t pay any heed to interest charges been added to debts, it makes no difference as its the balance at the start that matters, all else gets written off at the end of the 12 months.
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  • I was wondering if anyone had any advice on this one...

    I had £80 paid into an account that was included in my DRO. I called the bank, who claim that it is now going towards the debt. Can they do this?
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  • fatbelly
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    Billy - I agree that 'do nothing' is her best option.

    Technically the £375 is NOT covered by the moratorium since it was not listed AND she should inform the DRO Unit of the omission. But I'd leave it.

    Also, Very do not have to refuse payment from a 3rd party but the fact they have done may mean that account is also frozen and will be written off in due course.
  • fatbelly
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    keletubbie wrote: »
    I was wondering if anyone had any advice on this one...

    I had £80 paid into an account that was included in my DRO. I called the bank, who claim that it is now going towards the debt. Can they do this?

    Did you pay it in?

    If not, who did?
  • fatbelly wrote: »
    Did you pay it in?

    If not, who did?


    It was my fault. I agreed for something to be refunded to a card, not realising that the card was linked to the old account.

    I contacted the company who did it, who are basically unhelpful and say to contact the bank because they have the money. Lloyds are saying it's a payment towards the debt.
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  • fatbelly
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    I think Lloyds are OK to keep it. You must not make a payment to it, but a third party can do, and that is what has happened.
    Whilst the subject of a DRO, debtors need not take any action in relation to continuing correspondence from creditors scheduled as qualifying creditors in their DRO and should under no circumstances, except as outlined in “walking possession” and “rent arrears” above, make any payments to creditors with qualifying debts.
  • I recently started full time job and in now breach of the DRO agreement of 50 per month, previously on jsa which I had to pay towards everything myself which left me with well under that threshold.



    Called IS, revoked the DRO and then said they would send me an income/expenditure form but that was 2 weeks ago and worried that if i wait too long there will be debt collectors arriving at my door demanding payment, i still have stuff to pay for even though i have a job, what im asking is what sort of leniency will the creditors have in terms of making a payment arrangement?



    Earning 300 a week after deductions, with around 200 after expenditure (rent, food, etc), is it reasonable to be paying a little less than 200 a week to the creditors or will they try and squeeze my budget even more?
  • sourcrates
    sourcrates Posts: 28,647
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    edited 16 September 2018 at 2:10PM
    nmr1991 wrote: »
    I recently started full time job and in now breach of the DRO agreement of 50 per month, previously on jsa which I had to pay towards everything myself which left me with well under that threshold.

    Called IS, revoked the DRO and then said they would send me an income/expenditure form but that was 2 weeks ago and worried that if i wait too long there will be debt collectors arriving at my door demanding payment, i still have stuff to pay for even though i have a job, what im asking is what sort of leniency will the creditors have in terms of making a payment arrangement?

    Earning 300 a week after deductions, with around 200 after expenditure (rent, food, etc), is it reasonable to be paying a little less than 200 a week to the creditors or will they try and squeeze my budget even more?


    Hi,

    Your approaching this from the wrong angle, things do not move very fast in debt collection, no one will be knocking on your door, you may get a letter or two in a years time, that`s about it.

    Its you who decide what you can afford to pay your creditors, not the other way around, i don`t know how much your debt is, under 20k obviously, but £200 a month sounds more reasonable to me.
    If they don`t like it, then its tough.

    Fill the form in accurately, so you are left with a good budget, whats left, can go to the debts, they are all non priority after all.


    Why does the IS want this from you anyway ?
    I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing [email protected]. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter
  • fatbelly
    fatbelly Posts: 20,343
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    edited 16 September 2018 at 2:58PM
    nmr1991 wrote: »
    Called IS, revoked the DRO and then said they would send me an income/expenditure form but that was 2 weeks ago and worried that if i wait too long there will be debt collectors arriving at my door demanding payment, i still have stuff to pay for even though i have a job, what im asking is what sort of leniency will the creditors have in terms of making a payment arrangement?

    I see sourcrates picked up on this too.

    The insolvency service would not send you an income/expenditure form unless they were considering whether to revoke the DRO. I'm not sure that you can make that decision for them.

    So are you sure this has been revoked? Have you had this confirmed in writing? Does it show as revoked on the insolvency register?

    If you were well negative while on JSA, then starting work (and losing your JSA, Housing Benefit and council tax support) and maybe having extra expenses because of it, does not automatically mean your DRO would be revoked.

    In 2013/14 there were 26,786 DROs. Of these, 282 cases were reviewed because of windfalls or income increases. This resulted in:
    ◾154 revocations on the grounds that the asset limit was exceeded after a windfall had been received; and
    ◾29 revocations on the ground that the disposable income had been exceeded after an income increase.

    So that is a lot less than one in a hundred DROs that are revoked because of extra income or a windfall., and about 1 in 1000 because of an increase in surplus income.

    I think it is standard to give 3 months notice of revocation to the debtor and the creditors if that decision is made.

    It is not a 'given' that creditors will contact you post-DRO. The present owners of the debts may not be the ones you originally had as (I know this seems odd) there are companies who buy debts that are in DROs, IVAs and bankruptcy.

    In any event you should now be saving an emergency fund if you can, and keep posting here as things develop.
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