Debt Camel

Answers to questions about debts and credit ratings - in plain English!

DRO applications – frequently asked questions

Debt Releief order - signing an application form for a DRO - FAQs - common questions

A Debt Relief Order (DRO)  is often the best debt solution if you have under £20,000 of debt, you are renting and you have hardly any spare money to repay your debts. You don’t have to make any payments in a DRO and, after a year, your debts are wiped out.

You can’t apply for a DRO yourself, the application has to go through a debt adviser who is an Approved  DRO Intermediary. In this article, I just call them your DRO Adviser as it’s shorter! Most DROs are set up by Citizens Advice, but National Debtline, StepChange and Christians Against Poverty also handle a lot. It doesn’t matter who you go through, the DRO you end up with will be the same.

Because you aren’t applying directly, the process may seem a bit confusing. The best answer to every question is ask your DRO Adviser – each firm has their own internal forms and methods. They really want you to get through this process as quickly and easily as possible and the more you understand what is happening, the simpler that is going to be.

But if you are feeling anxious, or you can’t get to talk to your DRO Adviser for a few days, here are some typical questions about DRO applications here.

Questions about eligibility and suitability

I have covered the DRO criteria here – they are fixed numbers, not rough guidelines, and you will have to meet them all. Your DRO Adviser checks this and won’t submit your application if you don’t.

I’m self-employed, I make little money but it’s erratic

You can have a DRO if you are self-employed. Business Debtline are good people to talk to about your situation as a variable income can make it harder to judge.

My bank account often has a lot more than £50 in it so will the Insolvency Service reject a DRO?

This isn’t a problem. Your DRO adviser will do a proper check on your income and expenditure and if they say you meet the “under £50 spare income a month” test, then you are going to be fine.

I have applied for PIP but don’t know if I will get it

Tell your DRO adviser. If your only income is from benefits, this won’t matter, you will definitely qualify for a DRO. Even if you have other income it may be OK – although your income may be going up, your advisor can include extra disability expenses.

Does it matter if I went bankrupt 4 years ago?

No that won’t matter. The DRO Unit of the Insolvency Service will only refuse your application if you:

  • are currently an undischarged bankrupt; or
  • you are currently in an IVA; or
  • you have had a DRO in the last six years.

I’m staying with friends but when I get a place to rent, I will have no money

Applying for a DRO at the moment probably isn’t a good idea. I suggest you save up the money for a deposit and move out. Then you will know what your expenses are and what your surplus income is. You may well be right that you will be broke, but getting yourself settled is your top priority. Your debts – and any DRO – can wait.

I’m going to retire in about 6 months, what about my lump sum from my pension?

If you get a large lump sum from your pension whilst you are in the middle of your DRO year, your DRO will probably be cancelled. Unless you can postpone taking your pension until your DRO is completed, a DRO probably isn’t a good option for you. Talk to your DRO Adviser about this and about what your other alternatives are.

My maternity leave is ending in a few months – will this be a problem?

Your income will increase, but you may also get large childcare expenses, cost of travelling to work etc and your benefits may reduce, so you may still meet the DRO criteria. You need to talk this through with your DRO Adviser. If returning to work will be a problem for your DRO, then you may have other alternatives eg part time work for a few months until your DRO ends

Questions about income, assets and expenses

I don’t have any bank statements – does this matter?

Your DRO Adviser will want some proof of your income – if they ask for bank statements and you don’t have any, it’s usually easy to get one. Or they may be happy to accept wage slips and any benefits letters. The Insolvency Service doesn’t need to see your bank statements.

Are student loans treated as income when applying for a DRO?

Student maintenance loans and grants count as income for a DRO. The loan you get for tuition fees is ignored. If you are going to uni as a mature student, a DRO may well be a sensible option for you.

Why do I have to say what my partner earns?

A DRO won’t be refused because your partner earns a lot – they aren’t going to be told to pay your debts.  You are only being asked about their income so that it can be checked that your rent and bills are being fairly divided between you. If you earn the same, a 50/50 split would be normal.

My parents have been giving me money to help with my debts

Those are gifts and they could stop at any time. They don’t need to be reported on your DRO application as income.

Is my car worth what I can sell it for?

You should get a valuation using Parker’s Guide, look for the “private poor” option.

I have a car registered in my name for insurance, but it’s owned by my mother – what will happen?

Tell your DRO Adviser but this should be fine. What matters is who owns the car, not whose name is on the insurance or the V5 registration. You will probably need to provide some proof about who bought the car.

I’m unemployed and I pay my parent £30 a week for rent and board – is this allowed?

That isn’y going to be a problem – it would cost you far more to rent a room privately somewhere else!

Questions about debts

Why do I have to get my credit reports?

You are being asked for a credit report so that your DRO Adviser can be sure all your debts are being listed. This is for your own protection – any debts which are not listed on your DRO application are not included in it and so you will still have to pay them.

What details are needed about the debts?

Who the current creditor is, the amount and the reference number. If there are several reference numbers – the original credit card number, a debt collector account number and another number on your Experian record say – list them all to be on the safe side!

I stopped paying most debts ages ago but still pay two catalogues – is this a problem?

Technically this is called “preference” – paying some creditors and not others. That may sound alarming, but it’s pretty common. Although the DRO Unit can refuse a DRO application if this has happened, they assess how serious the preference was. Most people don’t have a problem:

  • if the preference was a while ago and before you took advice about a DRO, it matters a lot less – so from this point you must treat all your debts equally and stop paying any of them – for most people this means not paying anything to any of them. BUT don’t stop paying any priority debts without talking to your DRO Advisor first!
  • if you had been paying a family member or a friend and not paying commercial debts, that is seen as more serious.

Talk to your DRO Adviser – they may not be concerned or they may suggest putting off a DRO application for a few months so the preference is further in the past. But if you have problems with bailiffs or other urgent reasons it may still be good to apply now.

I used my credit card last month – is this a problem?

This is another common situation. It does depend on why you used credit – paying for an essential car repair is much less of an issue than taking the family to Disneyland! A DRO application won’t be refused because of this, but it is possible that some extra restrictions may be imposed if the DRO Unit thinks you have behaved recklessly.

Talk to your DRO Adviser. Some DRO Advisers don’t like putting in an application unless you haven’t used any credit for several months, but if the amount was small, or for an urgent need, you may want to carry on with it. Once you have decided to apply for a DRO you should not use any more credit.

I’m confused about rent arrears

Rent arrears are a debt that has to be included in your DRO. But if you are still living there, you are allowed to carry on repaying the arrears and if you don’t, the landlord or Housing Association/Council is likely to try to evict you. Talk to your DRO Adviser about this – it’s important you get an affordable arrangement in place to repay your rent arrears in place. This is one case where going to your local CAB for help with a DRO is good as they may know what policies local Housing Associations have.

Questions about how long the application takes

When my local CAB has checked my DRO do I then apply to the Insolvency Service?

No. Only approved intermediaries – your DRO Adviser – can submit an application for a DRO. Your DRO Adviser gets the information to go on the application from you and your credit records and you have to sign to authorise them to send in your application.

I’m about to pay the £90, has my application already gone in?

No. You will have been sent the letter with a barcode on it to pay the fee. The fee goes to the Insolvency Service. You then need to tell your DRO Adviser you have paid this and at that point they submit your application.

How long does it take to approve a DRO?

It’s quick! Your DRO Adviser will usually get an email one or two working days after submitting the application to say it has been approved. The letter to you confirming this, called the Debtor’s Notice, is posted the same day your DRO Adviser is told, so you usually get it the day after. You should keep this letter – not just for the 12 months of your DRO year forever because it is your proof of what debts are included in your DRO. The Insolvency Register is also updated, showing your DRO.

How many DROs are rejected?

Hardly any! Less than 1%. Most DRO advisers have never had an application rejected at all – if you think your adviser is being fussy, that is because they are doing all the checks so your DRO application will sail through.

How long do creditors have to object?

Creditors don’t have to agree to your DRO, there is no set time at the start for them to approve or object. A creditor can only object if they think you didn’t meet one of the DRO criteria. This doesn’t happen very often, and then the DRO Unit have to consider if the objection is accurate – most of them aren’t. It is VERY rare for there to be a problem with this – you don’t need to worry about it.

I am just about to pay the £90 and I have been told one of my debts has been sold

Tell your DRO Adviser – they may want to change the application. This isn’t a problem, it’s just a bit of a hassle.

I’ve paid my £90 DRO fee two days ago and I have had a letter from a bailiff about council tax

From this point it should be very quick, so you could simply ignore this letter, but tell your DRO Adviser and make sure your application has been submitted. If a bailiff calls, do not open the door under any circumstances, not even to explain about your DRO. See Do I have to let a bailiff in?

Other questions

Do I need a new bank account?

If you have an overdraft, it will be one of the debts in your DRO – you can’t leave it out. You will need to get a new bank account, but there is now a good range of basic bank accounts to choose from, see Getting a basic bank account.

If you don’t have an overdraft, you will usually be able to keep your current account. Your bank isn’t told you have started a DRO. Anecdotally NatWest and Halifax sometimes make you downgrade to a basic bank account from a standard current account.

Who is told I have a DRO?

Your creditors are told,  your name is included in the Insolvency Register (which lists people with bankruptcy, IVAs and DROs) and a marker will be added to your credit record. There is a procedure to not include your address on the Insolvency Register if you have had domestic violence or similar issues – talk to your DRO Adviser if you are worried about this.

Your landlord is only told if you have rent arrears. Unless you have an attachment of earning in place (which will stop) you employer isn’t contacted. Your partner isn’t told – but it is always a good idea to tell them yourself!

Will a DRO affect my partner’s credit record?

Not unless you have a joint account with them.

Do I have to send in monthly statements?

No! No one checks up on your income and expenditure during the DRO year. If this sounds unlikely, think about what the fees are – your £90 isn’t going to pay for any staff to be looking at your bank statements each month!

Can I move abroad?

Yes – tell the DRO Unit your new address and you will still have to inform them of changes to your income and expenses.

No such thing as a foolish question

I hope I have covered many people’s questions here. But it is always a good idea to tell your DRO Adviser about any concerns or questions that you have. Not just about your current situation and the application process, but about what may happen in the next year. It’s better to have this discussion before an application goes in!

More Debt Camel articles:

Can I leave a debt out of a DRO?

Do debt collectors still phone after a DRO?

DROs and your credit rating

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Author: Sara Williams Tagged With:

Comments

  1. Hello,

    I have been granted DRO in May. When I look at my credit report I don’t see the default which should be put on already by my creditors. Is that possible? Where should it be noted ( maybe I am looking at the wrong place?).
    Many thanks for your answer.

    Reply

    • It’s possible that defaults have been added in the last few weeks but don’t show up yet. Lenders only update the credit reference agencies once a month. And if you are looking at a free report, that is also a snapshot only taken every 30 days.

      This isn’t really anything to worry about at the moment, just wait until your DRO has finished, then a few months afterwards you can start the post-DRO clean up, see https://debtcamel.co.uk/repair-credit-record-dro/. If you do this now for the default dates, you may have to domuch of it again in a year to get the balances corrrected to zero. It’s easier for a DRO to do them all at once.

      Reply

  2. I am in the 12 mounths of a dro and I had a studio cateloge not listed as I didn’t owe any money. Do you know if I order of this cateloge now can my dro be withdrawn.

    Reply

    • This would be a very foolish thing to do. You are in the process of getting rid of all your debt, why start to get more expensive debt? Studio charges high interest and their “Buy Now Pay Later” deals have the evil clause which means if you don’t pay it all off by the end, you are hit with backdated interest back to when you bought it.

      Reply

  3. How do the insolvency service check the debts on the DRO? I have checked my credit score/report on all major credit reference agencies however I want to make sure I haven’t missed something which may lead to my DRO being rejected.

    Reply

  4. Hi

    I meet the criteria for a DRO other than my car is in my name despite it being owned and paid for by my mum (and worth approx 2k).

    After reading your advice on here regarding it being allowed to be processed in this situation, Stepchange have said that this is definitely not the case, after speaking with their DRO team.

    Would you have any other solutions at all please?

    Many thanks

    Reply

    • That is surprising. If your mum bought the car and can prove this, then she is the legal owner even if you are the registered keeper. I suggest you talk to National Debtline and see if they take the same view.

      Reply

      • Thank you Sara. I will do that. I only have a receipt which says sold as seen, in her name. Any idea if that would be sufficient?

        Thanks for your time.

        Reply

          • Hi. I checked with them today and it was the same answer. So in a bit of a tricky situation now. Frustrating really. Thank you anyway

          • Was the problem producing proof about who bought the car? What did National Debtline suggest you do?

    • A registration document is NOT proof of ownership as it only records details of the registered keeper.The people at Stepchange should know this.This is a legal document and they can’t change it to suit themselves.This was originally done to stop people buying vehicles on HP and then selling them.

      Reply

  6. Hi, I posted about a month ago (the man who is deaf & is a carer)

    I’ve just found out that my DRO has been accepted & have received a letter confirming this too.

    My question is that I keep getting told by people that I will be checked on by the Official Receiver during the moratorium period & keep on comparing it to bankruptcy?

    Being profoundly deaf & having other health issues I find dealing with unfamiliar situations & people extremely difficult.

    Is this the case & if so have others been contacted?

    K.

    Reply

    • I don’t know who is telling you this but (a) most people going bankrupt have no contact with the OR after the first few weeks and (b) on a DRO you will very probably have none at all.

      If you get over £500 (inheritance? back tax?) or if your income goes up you have to inform the OR. But you are not checked up on.

      Reply

    • Hi, thank yo for clearing that up for me.

      Not getting any money coming to me, was just concerned thats all!

      If I do win the lottery (if!) I’ll be sure to let them know!

      Thanks again,

      K.

      Reply

  7. Hi,

    I am going to apply for DRO. I got myslef in debt over last 4 years for different reasons. Some of them were paying car insurace, some of them were just general spending on clothes etc. Like I said- it has built up over the years. Is any of that checked when you apply? Will I be asked how did I spend my money? I am worried because I might not be able to mention all of the things I have spent money on in those years.
    Also, at the moment I have my car insurance paid till November, but since then I will want to pay in installments. Would it be better to apply for DRO then or apply now anyway?
    Another thing I want to ask is – I am going to college soon, but my BF is going to pay for me, will that affect my application for DRO? He is willing to pay for me because he worries about me and wants me to have a proper career.

    Many thanks!

    Reply

    • No asks you what you have spent the money on.

      Car insurance – will you need a car if you are a student? how much is it worth? If you are going to college next month, things are going to change quite a bit in your life. It might be better to wait a month or two until you know what your expenses will be before applying for a DRO. But you could talk to an adviser who sets up DROs now, just so you feel comfortable about that you are hoping to do – see https://www.nationaldebtline.org/EW/factsheets/Pages/debtrelieforders/droadvice.aspx

      Reply

  8. Hi i am considering BRO and in tricky situation regards my car this is a lease car from employer and is deducted from pay before tax-NI is taken I am unable to work without a car will i be allowed to keep it

    Reply

  9. When applying for a DRO what income is included. I receive pip and esa but We as a family with 1 child receive family allowance dla and enhanced child tax credit for my disabled child are these included as mine.

    Also as I’m am disabled can my carer act on my behalf by speaking to the advisor so that he can relay vital information (I have seizures and may miss something during a conversation) and ensure im completing forms correctly.

    Thank you

    Reply

    • All benefit income needs to be included, but for disability benefits, you can also have an expenses line for the amount. If your only income is benefits, I would not expect you to have problems with this, but your adviser will go through all this in detail with you.

      You should be able to authorise someone to speak on your behalf to an adviser, but you would have to actually sign the application form unless someone else has a power of attorney. You may find a good way is to have your phone on speaker, so that you and your carer can both listen to the adviser? One of the most important things is to make sure every one of your debts is listed on the application.

      Reply

  10. Is it possible to have a joint DRO with my partner as we both have debts and our household income is all joined. He works I don’t. We’ve had a debt management plan when stepchange for some time but circumstances have changed and they are advising a DRO.
    Thanks

    Reply

    • You both have to apply separately for a DRO, a joint DRO doesn’t exist. If StepChange are suggesting this it is likely to be much your best option.

      Reply

  11. Thinking of applying for DRO on advise from stepchange. Will my bank account be looked into straight away and on a regular basis?

    Reply

  12. Hi, Considering a DRO at the moment, would barclays close my bank account as my debt is with barclaycard, I have no overdraft. Just wondering if I should switch banks before?

    Reply

    • I suggest that you should switch bank accounts now to someone you don’t owe any money to. Go for a basic bank account – no overdrafts and no fees, see https://debtcamel.co.uk/bank-accounts-after-bankruptcy/.

      Barclays may not close your account after a DRO but it can take a while to get a DRO set up and the money in your account is not safe at the moment at Barclays have the right of set-off so they can just help themselves to your money.

      Reply

  13. Hi, I’m currently 10 months into my DRO. I cant start a limited company at present because i cant be the director of a company. Once my DRO 12 month period has ended can i start a limited company and be a director?

    Thanks

    John.

    Reply

  14. Hi Sara I paid my £90 fee yesterday for my debt relief order set up by my local citizens advice bureau. Today I have been sent an email today about a payday debt asking for payment . O completely forgot about this debt and it was also not on any of my credit reports. I don’t know what I should do? Any advice please? Thanks . Wendy

    Reply

  15. Hi, I have been i an iva but unexpectedly had to have emergency surgery and have another disability which means i am now on benefits and struggling. I have contacted a non profit charity debt company who are suggesting Bankruptcy or a DRO as my debts are just under 20K. What i am unsure of is if I become well enough to go back to work and come off benefits before the 12 months have ended on the DRO, what happens?

    Reply

    • Can you say how long your IVA has been running?

      If you go back to work and come off benefits, it will depend on how much surplus income you have after paying your bills and essential expenses. If that is too high, your DRO is likely to be cancelled (“revoked” is the legal term that is used.) This can feel a bit as though you are being asked to predict the future… How much have you been paying into your IVA? Will it be easy to walk back into your previous job? Would there be likely to be a period where part time work is a good idea?

      Reply

  16. Hello,
    I’d like to ask you about your statement: “student maintenance loans and grants count as income for a DRO. The loan you get for tuition fees is ignored. If you are going to uni as a mature student, a DRO may well be a sensible option for you.”
    If the maintenance load and grant count as income that is a bad thing because my income may be too high to qualify for the DRO. But I’m a mature student. So why do you say the DRO could be a sensible option? I’m a bit confused there. Can you help?

    Reply

    • It depends what your expenses are. Accommodation often takes up most of a grant/student loan leaving with little or no disposable income so you are able to get a DRO.

      Reply

      • Am I right that they have no way of detecting a student finance grant because it does not go on the credit report?

        Reply

        • You will be asked about your income. If you say you are a student, you will be asked about loans and maintenance grants. If you are considering lying, this is a seriously bad idea. and the debt adviser setting up your DRO will normally ask to see bank statements anyway.

          Reply

  17. Ive been in the iva since last December but it is now failed 3 times with non payment since ive been on Benefits. I think I understand now, as at the moment i dont pay full rent or Council Tax so unless i get a really well paid job in the future I should still be eligible as I will be paying for those and my disposable income will still be low and possibly below £50. Does clothing and car repairs etc class as essentials? Thanks for your advice.

    Reply

    • You are right that even good pay rises may not make that much difference to your disposable income if your benefits are cut.

      Clothing – yes. Including things like school uniform if you have children.
      Car repairs – yes if your car is considered essential.
      If you have a failing IVA and you are on benefits, a switch to a DRO is often a good idea. See https://debtcamel.co.uk/end-iva-change-to-dro/

      Reply

  18. Hi I have a dro, and set up a new bank account, but have been paid some money into my old account, but I can transfer the money as I think they have frozen my account, can I get this money?

    Many thanks

    Reply

  19. Can you save any spare money you have when in a dro? Say u ended up with £45 a week after bills and could save £30 a week. ? £1500 a year. Would you have to declare this to anyone towards end of your dro ?
    What kind of checks are done throughout the dro? Can an application be approved then revoked?
    Im struggling now and dro just applied for but afraid to leave money in bank if it ever is spare

    Reply

    • There aren’t any checks, this is a non intrusive procedure. And you don’t have to complete any form at the end, your DRO just ends!

      If you can save up some money every week that is a great cushion for you. Because if something goes wrong in a DRO and you urgently need money, you won’t be able to borrow it because of your credit record. So a few hundred in the bank can be a vital safety net.

      In practice, you will be doing VERY well very to save £45 a month. Hardly anyone will people be able to save £45 a week in a DRO unless they have increased income, and that you do have to declare. The exception I supppose would be people who are living with family who don’t contribute much to food and other bills… if this is you, perhaps you should contribute more?

      Reply

  20. Trying to get my son to consider a DRO but he’s worried about his car (and also worried meantime in case he has another bailiff’s visit). Without details I can’t check its value, but it could be over the the £1000 limit. It’s a very modest Ford estate but he needs something safe and reliable for getting to work (he works shifts) and for picking up his daughter from her mum’s and from nursery. An older, smaller replacement just wouldn’t be suitable. Someone has suggested I ‘buy’ it from him (it’s not on finance) so that it wouldn’t included in a DRO and any bailiffs can’t take it. Is it OK to do this?

    Reply

    • You can check the price of a car here https://www.parkers.co.uk/car-valuation/ – use the “poor condition” option.

      Yes you could buy it from him, but it would have to be at the market price, not very cheap, for it not to cause a problem for a DRO. he really needs to discuss this – and what he would do with the money – with a debt adviser who sets up DROs before you do this.

      Reply

    • So to what extent would an adviser check this? I’ve already shelled out a considerable amount to pay some of his other debts (using my credit card) and I’m wondering whether his handing over ownership of the car as payment would be acceptable. Could he issue a receipt to me, signed by us both, to say that I’ve taken the car from him as his repayment for that debt?

      Reply

      • No, because that would be repaying a debt to you, rather than splitting the money fairly between his other creditors. How much is this car worth roughly?

        Reply

        • £1845 – ‘private, poor’. It’s a 2006 model. Anything older or smaller would probably cost more in maintenance and/or be unsuitable for family use or regular motorway journeys. Plus it’s unlikely he’d be able to raise that amount if he sold or PX’d it.

          Reply

          • Then it’s not close to the DRO 1k limit. I really do think he needs to talk to a DRO adviser about his whole situation – at present you don’t even know if he will meet the other DRO criteria apart from the car.

          • You’re right there. I’m going over to talk to him tomorrow and we’ll see where we’re going from there.
            Thanks for your help.

  21. Hi there,

    Just applied for a DRO through stepchange.

    I paid my £90.00 fee and then called Stepchange to advise of current balances.

    They then said that they had more questions relating to my budget, which i wasn’t expecting, as they had sent me the bar code for payment.

    Anyway they had a query about my mobile phone bill £76.99 per month + £12.99 insurance but there is also an I pad is contracted to the account at £25.00 per month Total £114.98 per month.

    They said it would be better to include these costs in The DRO, but the problem is there are at least 10 months to run on the contract meaning the amount owed for cancelling the contract early would take me above the £20,000 threshold to qualify.

    So they said ok well we are happy to submit on that basis, but it may flag up to the insolvency service.

    Any advice or thoughts on this?

    I’m really hoping that a DRO is awarded as stress levels are now topping out..

    Thanks for any advice and comments.

    Reply

    • I can’t really say anything useful, sorry, this does depend on the exact details of your case, who the creditors is for the mobile and insurance and ipad, how large your debts are and what your disposable income is. StepChange are in the best position to talk to you about this. Is there any relative who could pay off the remaining 10 months of the phone contract? If StepChange don’t think it will go through, then it may be better to make token payments and then submit the DRO in 10 months time.

      Reply

      • Thanks for the reply.

        If we don’t include the phone bill in my budget I am then left with more than £50 disposable income per month meaning I wouldn’t qualify for a DRO again. And also obviously the total debt would rise above £20k.

        Well they have submitted it, so I’m hoping they have done that with my best interests at heart.

        Fingers crossed

        Reply

    • Normally just a few days, see the “How long does it take to approve a DRO?” section in the above article.

      Reply

      • Really happy to say my DRO was approved
        Yesterday (I would never have thought insolvency was something that would make me happy 1 year ago!) the relief is just so enormous.
        Thanks for your advice through this week.

        James

        Reply

  23. Hello,
    I lost a civil court case earlier this year, and was ordered to pay over £10000 to the other side. As it seemed that they were not interested in enforcing it, I took out a business loan of £7000 to start up a new business. If they later decide to enforce the amount ordered, or I get into financial difficulty with my new business, will I be able to apply for a DRO?

    Reply

    • That will depend on whether you meet the DRO criteria at the time. It is a bit odd that you were given a business loan with such a large unpaid CCJ on your credit record!

      Reply

      • Hello,
        Would they consider the business loan as irresponsible?
        And, because I can only have £1000, will they require evidence of how I spent the £7000?

        Thanks!

        Reply

  24. Hi there,

    So i was granted my DRO on 21st November, which was a massive relief.

    Came home from work yesterday to find a letter from the HMRC saying they owe me £1340 in overpaid tax from 2017/2018.

    I’ve spoken with the insolvency service about this and emailed the details of the HMRC letter.

    I was pretty close to the £20k threshold when approved and my disposable income was at minus £79 per month.

    The guy I spoke to said due to level of the debt the DRO would in high probability not be revoked. But have to wait for them to reply.

    Any thoughts? Who’d have thought getting a tax refund could be a stressful thing!

    Thanks

    James

    Reply

    • You have reported this to the IS promptly – that’s good. Read https://debtcamel.co.uk/dro-income-up/ – as that says a windfall of £1340 comes into the “discretionary” area where the DRO unit can decide not to revoke your DRO. Reporting it promptly helps with this as it shows you are being open. And your high level of debt will also help.

      Less than 1% of DROs fail – fingers crossed you will be ok!

      Reply

  26. Hi again..

    So so happy to say, I received a response from the OR..

    They said that they had considered my case very carefully, and no further action was required.

    Although and they stressed this was exceptional.

    I’m now able to sleep again!

    Glad I was honest and up front. No other way really. You enter a DRO and those are the terms and conditions.

    Phew!!

    Thanks as always for your advice

    Reply

  27. Thank you – I can honestly say it has been one of the most stressful times of my life.

    Your advice has been really honest and has helped me make the right decisions.

    Thank you again

    Reply

  28. How long it takes to get a response from the official receiver after paying 90 pounds (fee for the application)
    As I am worried if the interest take it above 20000 pound 
    I am a bit anxious and stress 
    Thank you in advance

    Reply

  29. Hi StepChange have advised I go for a DRO and asked for my noddle credit file, I didn’t realise my mobile phone would be listed and that bumps me over the £20,000 by about £400. Would my wife or family member be able to make equal payments to my debts for me to bring the amount owed down? I spoke to the insolvency service today and they said they cannot object a third party payment but couldn’t say for sure if my DRO would be rejected.

    Reply

    • Yes someone in your family could pay off £500 of debt to take you under th limit. This doesn’t have to be equally divided between your creditors – this is only if you are making the payments. If it is a third party they can pay off who they like and this isn’t considered “preference”.

      The Insolvency Service will never say that an application will be accepted. But if StepChange think it will you can trust that!

      Reply

  31. Good morning
    I have submitted my DRO application through Stepchange on the 08.12.18
    My balance was £19500.than
    I am worried by the time the decision made by IS my debt will go above 20k due to the interest. Added to my credit cards
    Do you think if it’ is the case
    Will this affect my application?
    Thank you.

    Reply

    • Have you asked StepChange if they have received a message yet saying if your application has been approved?

      Reply

      • Hi
        Not yet
        But the said it means think is under 20 k when you submitted the application not afterwards
        I hoping if you can share some light on it and with your past experience
        Also is there I link to check the status of my application
        Thank you again and much appreciate you supports
        Sam

        Reply

  32. If you submitted on 8th December I would imagine it has been approved now.

    Check the insolvency register for you name.

    Jamed

    Reply

      • Hi again
        I have checked and is on the register
        I am not sure if this means is been accepted.it says at the bottom

        Footnote The debtor’s Moratorium Period End Date is in accordance with Section 251H of The Insolvency Act 1986. As of this date, the debtor will be discharged from the qualifying debts
        Honestly, don’t understand

        Reply

          • I hope so I will contact Stepchange tomorrow to double check and have pissofmind and confirm on a reply tomorrow
            However, I really appreciated your support
            Thank you

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