DRO and preferential payments rules

Pianothing · 7 April 2018 at 8:25AM

Hi

I'm at my wits end. My debts are out of control. I've taken out payday loans and high interest credit cards to pay living expenses, I've got two enforcement officers and and a High Court Enforcement Officer banging on the door. I finally spoke to the CAB about getting some help and support and have an appointment on Monday. The advisor I spoke to is one that can do DROs and he said that based on my budget I qualify for a DRO.

My problem is, I can't demonstrate I haven't made preferential payments. I suffer with anxiety so when I get a bailiffs visit, even though it's only a letter through the door, I pay them something in the hope that they'll leave me alone for a little while. The payday loans are on a continuous payment authority so they've been taken from my account.

Are the insolvency service really strict about preferential payments? I can't pay my bills and would have so little money left that I couldn't pay an iva. I'm terrified I'll be told I need to declare myself bankrupt as I could loose my home and my job and I don't have the upfront payment to go down that route.

I'm stuck in a complete mess with what seems like no sensible solution.

Has anyone else been in this situation and still managed to get a DRO?

Thank you for reading.

sourcrates · 7 April 2018 at 4:44PM

What debts are the HCEO`s chasing you for ?

Are you behind with rent or council tax, or something of that nature ?

Are you confusing bailiffs with debt collectors ?

You don't need to demonstrate preferential treatment, they only ask, you have just been paying bills when due, so simply say no.

If you qualify for a DRO, it can be set up very quickly, and will take away the worry of your unsecured debts at any rate.

Pianothing · 7 April 2018 at 7:47PM

Two bailiffs for council tax and one high court enforcement agent for a can I missed two payments on. I broke my pelvis and was hospitalised, then bed bound, then in a wheelchair. I emailed the creditor to tell them I needed to reduce my payments temporarily. They were really unhelpful and escalated it to the High Court. The hceo has already stiffed me with £977.30 of charges which has put the debt back to what it was at the time of the ccj. I'm at the end of my rope with everything. It's all too much for me to cope with mentally and I'm getting depressed.

[Deleted User] · 7 April 2018 at 8:20PM

Pianothing wrote: »

The payday loans are on a continuous payment authority so they've been taken from my account.

Are the insolvency service really strict about preferential payments? I can't pay my bills and would have so little money left that I couldn't pay an iva. I'm terrified I'll be told I need to declare myself bankrupt as I could loose my home and my job and I don't have the upfront payment to go down that route.

Has anyone else been in this situation and still managed to get a DRO?

Thank you for reading.

Have you tried contacting the payday loan companies and asking for them to stop the CPA - it's either them or the bank you are with you'll need to speak to. It does happen I can recall a year ago pay date had changed slightly as there was a 31st in the particular month, on calling the loan provider their response was to cancel the CPA much to my surprise at the time.

Something about your post makes me want to ask if you are a home owner?

There is a lot to be said about situations where you make 'payments under duress' please don't lose sight of this.

I would like to assure you I had a DRO granted in 2012 when months earlier and my situation different I'd managed to pay a £200 credit card off, although I could prove all the way through I'd been in dire straits - extensive use of payday loans was a big part of this.

I even paid the DRO fee with what I was refunded back from one of these companies. It was the best use of the £95 obtained through the court process ironically. Again not challenged.

Pianothing · 7 April 2018 at 8:41PM

No. I rent my house. My rent is always paid. Never been in arrears. Hence I've just signed for a 4th year in my house.

I just want this all to be over so I can stop living in fear of the phone ringing, the post being delivered and a knock on the door. I feel like a prisoner in my own home.

Thank you for the advice about the CPA. I'll phone the bank tomorrow to get it cancelled.

MalMonroe · 7 April 2018 at 9:11PM

I'm so sorry to hear that you are going through this. I know from personal experience how awful it is. I contacted StepChange by phone (0800 138 1111) and they were able to put my mind at ease immediately. Worse for you as you've had such health problems. Be aware that you do have to pay for a DRO, it was £90 in 2013 when I did mine. But the CAB will be able to tell you all about it and the good thing is that once your debts are being sorted by one of the authorised agencies, creditors should start taking notice and stop sending people to harass you. The advice StepChange gave me was to offer each creditor £1 per month until the DRO was granted. You've taken the first step now, anyway and you're going to get things sorted so try not to worry, you're on the home stretch now.

Pianothing · 7 April 2018 at 9:18PM

Yes. It's still £90. I have a lovely friend that has offered to pay half for me and I've got the other half tucked away in my savings account ... first time I've ever put anything in it!

Thank you for your kind words. I feel better knowing I'm not alone. !!!9786;

ToxtethO'Grady · 7 April 2018 at 11:27PM

Please don't worry about the preferential payments to bailiffs or HCEOs, the payday loans for living expenses, the Insolvency Service will understand based on your health and situation.

Just a short statement about it from your intermediary should cover that...and IF the Insolvency Service ask for proof any letters/receipts from the bailiffs/HCEO and any evidence of your health such as prescription would cover it

Using credit such as payday loans is covered as well as you are using it for living expenses and paying them all equally from what you said in your post. Preferential payments are when, for instance, you paid one creditor £600 and all the rest of your creditors £1, that's to their detriment so they can then moan to the Insolvency Service.

Make the payday loan companies and the HCEO aware you have priority arrears - council tax office should be contacted to make them aware of your health - ask them to bring the warrant back and do it in writing with any medical evidence you have. CAB should be able to help you with any letters. You can still pay the council tax direct to the council as well, just set it up as a standing order, that way they have more reason to bring the warrant back.

That will give you the time to get your DRO ready and submitted.

Good luck!

Pianothing · 8 April 2018 at 12:47AM

Thank you. One of the council tax bills is for the area I live in and I've paid the vast majority of it, only £185 left and I suspect that is only fees. The other bailiff is for a bill about 4 years old and they only recently started visiting, I contacted them and explained about my pelvis and they were actually ok about it but said they have to keep visiting. The HCEO is for a trade debt. As I said, I contacted the creditor before it even went to the High Court and they they were completely unhelpful, told me when I was still in hospital that I needed to apply to the court to get my payments reduced. I couldn't do that so I tried to keep up the payments, that's how I eventually started with the payday loans. So then I missed two payments and got a High Court Writ. I've tried to deal with the HCEO but they are completely unhelpful. I believe they have actually breached their guidance as they didn't give me 7 days clear notice of their first visit and, even though I advised them that I'm classed as vulnerable, they haven't considered that in their dealings with me. I'm getting further advice about complaining about their conduct. Unfortunately the HCEO concerned is the chairman if the High Court Enforcement Officers Association ... And that's who I'm supposed to complain to ... like I say, I need to get some more advice. I'm really fed up with their unregulated bully boy tactics and need to say my bit ... once I get my brave pants on.

I've got plenty of evidence of payments to the various enforcers through my bank statements and I have copies of all my fit notes to evidence my broken pelvis. My anxiety issues I can get a letter from my doctor if necessary.

I wish Monday would hurry up and come round.

ToxtethO'Grady · 8 April 2018 at 2:04AM

High Court Enforcement can't enter domestic premises the same as bailiffs and have to take notice of vulnerability. You should film them on your phone and record calls you receive, tell that you are at the start of any call as they can say that anything before you've told them cannot be used.

Same rules apply and you can fill in an N244 to get the writ back to court (stay of execution) , if you are on benefits the costs are covered, https://www.gov.uk/get-help-with-court-fees

Once you have the writ back to court and show you have no means to pay, are vulnerable, have priority arrears it goes back to county court and you fill in an N245 and offer what you can afford, council tax is a priority even if old/different areas so you offer them a token payment.

You can raise your concerns to the high court enforcemetn company first, then go to High Court Enforcement Officers Association if they don't resolve your complaint, doesn't matter if he's the chairman he shouldn't be involved in any complaints procedure at all. If you are still concerned also contact your MP and the media when you raise your complaint

Pianothing · 8 April 2018 at 9:25AM

I explored the stay of execution and varying the order. The court advised me to do both at the same time. The fees for that are £305. I don't have that much money without leaving several expenses such as utility bills and travel expenses unpaid. Unfortunately I don't qualify for any help as I earn to much. I can't even apply for partial assistance. I live in the commuter belt for London and I pay more money in rent each month than the £1045 threshold for assistance with fees.

I fully intend to complain about the HCEO. Whose name isn't on the HCEO register strangely .... only the name of the company he works for. I think that's against the rules too. I think that a HC Writ has to be pursued by a registered HCEO.

This is why I so desperately need support. It's just too much for me to process all at once. I'm hopeful that the CAB will hold my hand throughout the whole sorry business.

The HCE company is owned by the chairman of the HCEO Association. I've done lots of research as I'm not sleeping properly.

I hope that once I've seen the CAB the burden will be lifted a bit and there will be light at the end of the tunnel.

You are a font of knowledge. Have you been through þhis stuff yourself?

DRO and preferential payments rules

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