Has anyone has a Debt Relief Order (DRO)? HELP

[HelloWorld2577]

Hello!

Recently sent my application off to the insolvency service using Money Wellness as the approved intermediary.

The charity were brilliant but couldn't answer any questions about what would happen if and when my DRO application is approved as they just send it off and thats where their involvement ends. I just wondered if anyone who has gone through this process could advise on what happens once the DRO is actually accepted?

Do the insolvency service monitor you over the 12 month period the DRO is for and if so what do they do and how frequently are they in contact? I am happy to provide bank statements etc however I would just like clarity on exactly what to expect in regards to contact from the insolvency service!

Thank you

When it is approved you will be sent information from the insolvency service about your responsibilities etc. in my experience they do not contact the applicant during the moratorium unless a creditor raises an issue (which is unusual). You do need to make sure that you inform them of changes such as change of address,increases in income, inheritance etc as it is an offence not to, but they should give you information about all of this. Well done for dealing with your situation. Hope it works out well going forward.

Im sure by now its all resolved but if there was anything they felt needed further explanation they would refer your case to a local office who would get into contact and arrange an interview. You would also need to provide all assets, creditors, financial records they would need to clarify. If they find anything they would make a recommendation to extend your restrictions. Otherwise if its all straightforward this doesnt happen, you probably just get a call from income payments team. Unless you recieve benefits. You do have to let them know if any changes to your income. Also you will have a reference number starting with BKT that you can quote to any creditors still chasing you.

Once the DRO is made, you enter into a 12 months ‘moratorium’ period where the debts still exist but creditors are not allowed to pursue them. The debts are written off at the end of the 12 months.
If during the 12 months your allowed disposable income or your savings/ assets increase beyond the allowable limit, your DRO will be revoked. However, the Insolvency Service won’t know about your change of circumstances so it’s your duty to let them know. An increase in income doesn’t necessarily mean that you’re disposable income increases because a new job with higher wage may also mean increased expenses (travel, work meals etc). If during the moratorium period it comes to light that your debts were above the allowed limit (sometimes creditors can bring ‘forgotten debts’ to the attention of the insolvency service), then your DRO will be cancelled.
In reality very very few DROs are cancelled.