What does it mean when a creditor ‘discharges a debt’?ĭischarging a debt means it’s cancelled, because it’s been included in your DRO. If they still carry on doing these things after you've reminded them, you should contact the DRO team at the Insolvency Service. If any of the creditors listed in your DRO application do any of these then you should remind them about your DRO. There are certain things that your creditors can't do: What your creditors can't do if you're on a DRO The collection agency could also check the Insolvency Register themselves, or they can ask the original creditor who would have been told about the DRO. You can do this by sending them a copy of your approval letter as proof the debt is included in your DRO. You'll need to let this new company know. Because the official receiver doesn’t always write to the collection agency, they may not be aware you have a DRO, and that the debt they’re collecting for has already been discharged. Some creditors may sell your debt to a collection agency during your DRO moratorium period. If you pay by standing order, you’ll have to contact your bank to change the payments yourself.Ĭan a creditor collect on a discharged debt? If you normally pay your arrears by Direct Debit, you need to contact the company and ask them to change the amount you're paying so that it just covers your normal payment. If you include any household arrears in your DRO application (like council tax, gas or electricity) you can stop paying these as soon as it's approved. If they don’t update your meter promptly, contact your supplier directly to tell them about your DRO. They'll be informed about your DRO by the Insolvency Service. If you pay for your gas or electricity through a pre-payment meter and your arrears were included in your DRO, your utility company will need to adjust your meter to stop these payments being taken. However, the DWP will normally stop Social Fund deductions during a DRO moratorium period. It's worth being aware that Social Fund loans aren't included in a DRO. If you find that money is still being deducted from your benefits after your DRO has been approved then you should contact the benefits agency to let them know about your DRO. The DRO provider should have already taken this into account so you don't need to contact them or the Insolvency Service. This will mean that your income will go up a bit as the payments will have stopped. The Insolvency Service will send them this notification. If you're having a benefit overpayment or any household arrears deducted directly from your benefit payment, this should stop as soon as they receive notification that your DRO has been approved. Any benefit overpayments or priority arrears (household bills that you've fallen behind with) that were in your DRO application will have been written off at the end of the 12-month moratorium period.
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