DRO and preferential payments rules

Jakkikim · 10 April 2018 at 6:38PM

Try Step Change Charity, they go through every aspect of the DRO, I managed to get the fee paid for me by the Civil Service Charity as I used to work for them. I worried for years about my debts but with a DRO I am now debt free.

Pianothing · 10 April 2018 at 9:25PM

Thank you so much for your post Twubble.

I really hope you're right. I had an email from the HCEOs office today telling me I have till Friday to go back to them with a new proposal or the enforcement agent will be let loose again. I think my debt advisor said I should just ignore them. I'm hoping that between Friday and Monday 23rd April they will only visit once and hopefully then my DRO will be approved within a couple of days.

fatbelly · 11 April 2018 at 7:32AM

Pianothing wrote: »

So today I went for my appointment at the CAB. It was really positive but I am really close to the 20k limit! How did things build up to that much????
I took all my paperwork with me so the advisor said he can get the application ready by 23rd April.
I've signed so they can get my credit report. It wasn't anywhere near as intrusive as I thought it would be and I wasn't told I've got to rein in my spending on food to 50p a day.
I just hope now that once I sign and pay that it gets approved. Does anyone know what percentage of DROs are rejected?

Pianothing wrote: »

Thank you so much for your post Twubble.

I really hope you're right. I had an email from the HCEOs office today telling me I have till Friday to go back to them with a new proposal or the enforcement agent will be let loose again. I think my debt advisor said I should just ignore them. I'm hoping that between Friday and Monday 23rd April they will only visit once and hopefully then my DRO will be approved within a couple of days.

Most DROs are approved 2 days after submission. They have just had a glitch but hopefully that was sorted yesterday. The advice on HCEOS is what I would give - ignore and avoid - if you tell them you are going to get a DRO in 2 weeks that will just make them more aggressive for 2 weeks.

Pianothing · 11 April 2018 at 2:14PM

Thanks everyone. I'm going to batten down the hatches for the next two weeks. Hopefully this time in two weeks my moratorium period will be starting and I can breathe a sigh of relief. I might even get some sleep that doesn't involve me falling asleep on the sofa for an hour but not being able to sleep in my bed!
My next anxiety is that the HCEO and the claimants solicitor will try to go back to court to get permission to pursue the debt. I've read somewhere that creditors can do that but I don't know what circumstances it would be granted under. Has anyone heard of that? It sounds like the sort of rotten action the claimant would take as he's a really persistent and vindictive little man.

fatbelly · 11 April 2018 at 6:20PM

Pianothing wrote: »

My next anxiety is that the HCEO and the claimants solicitor will try to go back to court to get permission to pursue the debt..

I'm not sure what you mean there. The creditor has a ccj against you and he has escalated it to High Court and appointed an HCEO.

The other forms of enforcement will take time and may be impossible anyway:

charging order
attachment to earnings
third party debt order
bankruptcy

Pianothing · 11 April 2018 at 7:57PM

Sorry. I read that provided I haven't signed a walking possession or let the enforcement agent in, then the debt is included in the DRO. But, there are certain circumstances where a creditor can apply to the courts for permission to pursue the debt. So I guess, in essence, I wonder if he will try to get permission from the courts to 're engage the HCEO to chase me. This is all assuming my DRO is approved.

fatbelly · 11 April 2018 at 8:39PM

Pianothing wrote: »

But, there are certain circumstances where a creditor can apply to the courts for permission to pursue the debt. .

No

The DRO moratorium gives compete protection from qualifying debts, and this is one.

If a debt is fraudulent, like some benefit overpayments are, then they can be pursued again after the moratorium ends.

It should be noted that any debts incurred as a result of fraud or fraudulent breach of trust to which the debtor was a party, will not be discharged at the end of the moratorium period. The creditor will be free to pursue recovery of those debts.
The legislation is quite clear in that no creditor with a qualifying debt has any remedy in respect of that debt. This must include the right to levy execution or distress during the moratorium period

Pianothing · 11 April 2018 at 9:10PM

Have a look at this link
http://www.undebt.co.uk/faqs/

Click on the question about creditors still chasing a Debt then click on DRO. It says there that debts can't be chased without the courts permission. Therefore I'm making the assumption that the city's can give permission. If this is not true then the statement is misleading.

sourcrates · 11 April 2018 at 9:25PM

Pianothing wrote: »

Have a look at this link
http://www.undebt.co.uk/faqs/

Click on the question about creditors still chasing a Debt then click on DRO. It says there that debts can't be chased without the courts permission. Therefore I'm making the assumption that the city's can give permission. If this is not true then the statement is misleading.

The court would deny permission as they have no remedy against a qualifying debt included in a DRO.

The law is quite clear in that respect.

Fat belly is an intermediary, so I would rather take his advice, over something off a less than reputable debt management company web site every time.

fatbelly · 11 April 2018 at 9:55PM

Pianothing wrote: »

Have a look at this link
http://www.undebt.co.uk/faqs/

Dodgy IVA company who think the bankruptcy fee is £710. Get your advice from reputable sources.

Edit: It's misleading to suggest they can do DROs - they are not a 'competent authority'

DRO and preferential payments rules

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