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    • keletubbie
    • By keletubbie 14th Sep 18, 6:46 PM
    • 635 Posts
    • 5,018 Thanks
    keletubbie
    Did you pay it in?

    If not, who did?
    Originally posted by fatbelly

    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.
    Best wins: Luxury weekend in Russia, family holiday to France, catered BBQ for 20, Selfridges shopping spree, jolly to Majorca, £1,000 See Tickets vouchers, £500 John Lewis vouchers, five-star weekend in Provence!
    • fatbelly
    • By fatbelly 14th Sep 18, 8:19 PM
    • 12,973 Posts
    • 10,044 Thanks
    fatbelly
    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.
    • nmr1991
    • By nmr1991 16th Sep 18, 2:57 PM
    • 42 Posts
    • 18 Thanks
    nmr1991
    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
    • By sourcrates 16th Sep 18, 3:06 PM
    • 15,717 Posts
    • 14,780 Thanks
    sourcrates
    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?
    Originally posted by nmr1991

    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 ?
    Last edited by sourcrates; 16-09-2018 at 3:10 PM.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
    Bankruptcy And Living With It, boards. "I volunteer to help get your forum questions answered and keep the forum running smoothly".
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.

    For free debt advice, contact either : Stepchange, National Debtline, or, CAB.
    For Free Legal advice see : http://legalbeagles.info/
    • fatbelly
    • By fatbelly 16th Sep 18, 3:51 PM
    • 12,973 Posts
    • 10,044 Thanks
    fatbelly
    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?
    Originally posted by nmr1991
    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.
    Last edited by fatbelly; 16-09-2018 at 3:58 PM.
    • nmr1991
    • By nmr1991 16th Sep 18, 6:30 PM
    • 42 Posts
    • 18 Thanks
    nmr1991
    It says im still subject to a debt relief order until Jan 19, but I just wanted to avoid the repercussion of not telling the insolvency service that my income has increased substantially, even though i've only started working 2 weeks ago - as detailed on my debt relief order conditions, I could be prosecuted and fined for not disclosing this information.



    In any case i might have to just wait until the end of the month, and check the register again to see if it has changed. Its only in the 2k region, which is why I suggested to pay it off as quickly as possible without incurring interest.
    • sourcrates
    • By sourcrates 16th Sep 18, 6:49 PM
    • 15,717 Posts
    • 14,780 Thanks
    sourcrates
    Its only in the 2k region, which is why I suggested to pay it off as quickly as possible without incurring interest.
    Originally posted by nmr1991
    What is in the 2k region, your total debt ?

    If that’s the case, I can see possibly why a DRO would be sought when you were not working, no real income etc, but even if it’s revoked, it’s not the end of the world for such a small amount of money.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
    Bankruptcy And Living With It, boards. "I volunteer to help get your forum questions answered and keep the forum running smoothly".
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.

    For free debt advice, contact either : Stepchange, National Debtline, or, CAB.
    For Free Legal advice see : http://legalbeagles.info/
    • fatbelly
    • By fatbelly 16th Sep 18, 8:17 PM
    • 12,973 Posts
    • 10,044 Thanks
    fatbelly
    It says im still subject to a debt relief order until Jan 19, but I just wanted to avoid the repercussion of not telling the insolvency service that my income has increased substantially, even though i've only started working 2 weeks ago - as detailed on my debt relief order conditions, I could be prosecuted and fined for not disclosing this information.



    In any case i might have to just wait until the end of the month, and check the register again to see if it has changed. Its only in the 2k region, which is why I suggested to pay it off as quickly as possible without incurring interest.
    Originally posted by nmr1991
    Assuming you got the DRO in Jan 2018, it has not been revoked. Post a soa here and I'll give you my opinion on whether it will be. I don't see the point of paying 2k out if you can avoid it.

    Have you had your first wage yet?
    • Billy12345
    • By Billy12345 17th Sep 18, 9:40 AM
    • 80 Posts
    • 106 Thanks
    Billy12345
    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.
    Originally posted by fatbelly

    Fatbelly, Sourcrates...thanks for your replies. I'll leave it and let it plod along. Received a cheque over the weekend for the payment I'd made from my account so I'll just wait and see if they chase it after the moratorium period ends.
    LBM August 2016 = £59,600 Now £48,669. DFD 2037 !!! Getting there slowly but surely
    • nmr1991
    • By nmr1991 17th Sep 18, 6:53 PM
    • 42 Posts
    • 18 Thanks
    nmr1991
    Assuming you got the DRO in Jan 2018, it has not been revoked. Post a soa here and I'll give you my opinion on whether it will be. I don't see the point of paying 2k out if you can avoid it.

    Have you had your first wage yet?
    Originally posted by fatbelly

    i'm paid weekly so yes ive had my first wage, ive also done a budget calculator which i assume is like an SoA plus i don't really have any assets to my name apart from cash and the debt is unsecured i believe (bank overdraft).
    • fatbelly
    • By fatbelly 17th Sep 18, 7:09 PM
    • 12,973 Posts
    • 10,044 Thanks
    fatbelly
    If you post it (weekly or monthly) I can let you know if I think you are being unreasonable with your figures.
    • nmr1991
    • By nmr1991 17th Sep 18, 9:01 PM
    • 42 Posts
    • 18 Thanks
    nmr1991
    Statement of Affairs and Personal Balance Sheet

    Household Information

    Number of adults in household........... 3

    Monthly Income Details

    Monthly income after tax................ 1200
    Total monthly income.................... 1200


    Monthly Expense Details

    Secured/HP loan repayments.............. 0
    Rent.................................... 120
    Mobile phone............................ 5
    Groceries etc. ......................... 100
    Clothing................................ 5
    Other travel............................ 60
    Presents (birthday, christmas etc)...... 10
    Entertainment........................... 5
    Emergency fund.......................... 0
    Total monthly expenses.................. 305


    Assets

    Cash.................................... 350
    Total Assets............................ 350


    No Secured nor Hire Purchase Debts


    Unsecured Debts
    Description....................Debt......Monthly.. .APR
    Bank overdraft.................1800......0.........0
    Total unsecured debts..........1800......0.........-



    Monthly Budget Summary

    Total monthly income.................... 1,200
    Expenses (including HP & secured debts). 305
    Available for debt repayments........... 895
    Monthly UNsecured debt repayments....... 0
    Amount left after debt repayments....... 895


    Personal Balance Sheet Summary
    Total assets (things you own)........... 350
    Total HP & Secured debt................. -0
    Total Unsecured debt.................... -1,800
    Net Assets.............................. -1,450


    Created using the SOA calculator at www.stoozing.com.
    Reproduced on Moneysavingexpert with permission, using Firefox browser.

    removed some elements from the SOA because they weren't applicable such as not owning a car, living in friends house, and student loan kept being accounted for when it only takes payments if earning over 21k.
    • fatbelly
    • By fatbelly 17th Sep 18, 10:03 PM
    • 12,973 Posts
    • 10,044 Thanks
    fatbelly
    I'm guessing you live with parents (hence the 3 adults, low rent, nothing for council tax, water, electricity, gas, t v licence, low spend on groceries, clothing). Also you don't own a car so your travel costs are low.

    You are right in that you can afford to pay your debt in 2 months.

    In fact you are so right that I wonder whether you should have had a DRO at all. I don't like doing them for less than £3000 and I am also cautious about doing them for younger people who might be going through temporary unemployment.

    Never mind, you're going to be fine.
    • smallandcute
    • By smallandcute 22nd Sep 18, 6:32 PM
    • 52 Posts
    • 17 Thanks
    smallandcute
    Can overpayment of wages from previous employment be included in a DRO? Thanks.
    • fatbelly
    • By fatbelly 22nd Sep 18, 7:32 PM
    • 12,973 Posts
    • 10,044 Thanks
    fatbelly
    Can overpayment of wages from previous employment be included in a DRO? Thanks.
    Originally posted by smallandcute
    Hi smllandcute

    It certainly can.

    Have you not done a DRO yet? You were looking at it 18 months ago.
    • smallandcute
    • By smallandcute 22nd Sep 18, 8:31 PM
    • 52 Posts
    • 17 Thanks
    smallandcute
    Hi Fatbelly,



    Yes looked at a DRO a little while ago. Circumstances changed so started paying off debts but they have since changed again so i am back to square one. I will post properly in the next few days a complete statement of affairs and my situation for best advise. Thanks so much for all your help.
    • Mummazeb
    • By Mummazeb 24th Sep 18, 5:49 PM
    • 2 Posts
    • 0 Thanks
    Mummazeb
    Hi I'm very new here so apologies if this has already been asked.
    We're looking at doing a dro. We are solely on benefits at the moment and can't see this changing for a while as hubby has health problems which will result in surgery. Anyway step change have just told me that the creditors can reject the dro application. this worries me. I've got two creditors who are just plain horrible and I gave visions of them rejecting it and then I've lost the money. has anyone had this happen at all?

    Thanks
    • fatbelly
    • By fatbelly 24th Sep 18, 6:50 PM
    • 12,973 Posts
    • 10,044 Thanks
    fatbelly
    Hi I'm very new here so apologies if this has already been asked.
    We're looking at doing a dro. We are solely on benefits at the moment and can't see this changing for a while as hubby has health problems which will result in surgery. Anyway step change have just told me that the creditors can reject the dro application. this worries me. I've got two creditors who are just plain horrible and I gave visions of them rejecting it and then I've lost the money. has anyone had this happen at all?

    Thanks
    Originally posted by Mummazeb
    I think I need to pop over to stepchange and give them a lecture.

    Yes, creditors can object but they hardly ever do, and should never be successful if the intermediary submitting the application has done his/her job properly.

    The only time I've had a nearly successful creditor objection was when we were right up to the 20k limit and the water authority found an old debt from their archive. I pointed out that we had already asked them if the client had any other debts to them and they had replied in the negative. They agreed to drop the matter.

    Provide you meet the basics:

    •Must not be a homeowner,

    • Debts less than £20,000,

    • Can have a car worth up to £1000,

    • No other assets of more than £1000,

    • Must have £50 or less left at month end, after all essential payments have been made (not inc debt repayments),

    • Cannot have had a DRO in last 6 years.

    You'll be fine.

    However, you must understand that DROs are an individual solution - your debts will be frozen, then written off. If any are joint debts they move over to the other party, and if he has any debts, pre or post DRO he will have to make his own arrangements which may be another DRO.
    • Mummazeb
    • By Mummazeb 24th Sep 18, 8:22 PM
    • 2 Posts
    • 0 Thanks
    Mummazeb
    Thank you so much for putting my mind at rest. Yes we will both be doing the application so that we're both covered as there are debts in both our names.
    Just so stressful. Thanks again.
    • DourPower
    • By DourPower 25th Sep 18, 12:44 PM
    • 6 Posts
    • 0 Thanks
    DourPower
    credit use prior to DRO
    Hi All - my wife and I are in difficult financial situations, but keep our finances separate - she's been on the phone to BDL and they're recommending DROs for both of us - she's going to go first.

    I have many questions but the burning one is she's been told that activity on the cards in the weeks before the DRO can jeopardise the application..

    My intention is/was that prior to any debt management *thing* to use remaining credit that I have on existing cards to clear my overdraft and cards at Lloyds, where my account and my young daughter's linked account are. I want that to become my debt-free account. I've also (before all this kicked off) booked in to have my (£600 value) car serviced and tyres done, using a new 0% purchases card I've just taken out last week. Are both of these spectacularly bad ideas? edit: I should say such car maintenance is in our household budget at this point.

    All my cards are 0% at the moment, and my credit rating seems to have been good enough to get another card last week, but obviously our household balance is negative anyway, even before we try and make these payments...moving the payments from one card or overdraft to another doesn't make much difference.

    I feel kind of pressured by her DRO, and its emphasis on household income, as if me scrimping to make card payments is somehow selfish... I don't understand how a DRO is personal yet it seems to be all about household income... if we both have DRO's is it one £50 rule or is it £50 each?

    I know on DMP threads it's all about accumulating an 'emergency fund' before hitting go - I guess that is the opposite for DRO where you'd not want to build an asset that would lead to it being revoked (even if you could, which is doubtful). Given that we have six years ahead with no credit do we just get through the year as best we can and then start trying to protect ourselves with a fund?
    Last edited by DourPower; 25-09-2018 at 12:52 PM. Reason: added point about car maintenance being in household budget
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