Keep the trustee informed of their whereabouts at all times during the moratorium period. The curator can reject a DRO application if it is established during the processing of the application that the applicant has omitted data. It remains the applicant's responsibility to repay within the terms of the loan agreement.
Where bailiffs have enforced or seized the applicant's goods prior to the DRO being made and the creditor has the benefit of taking control of the goods (formerly a title deed – see above).
Restrictions imposed on an applicant subject to a DRO
The applicant will remain on the individual insolvency register for the period the order is in force (usually one year), plus an additional three months. If the applicant has a DRRO/DRRU issued against them, they will remain on the Individual Insolvency Register for the duration of the order/commitment plus an additional three months.
The Official Receiver
Approved Intermediaries
However, it is assumed that approved intermediaries will have already carried out checks or will satisfy themselves that such checks have been carried out on the information provided by the applicant. Therefore, it is assumed that the mediator will already have made a decision about the suitability of a DRO based on the applicant's circumstances before completing the applicant's online application form.
COMPLETION AND SUBMISSION OF THE APPLICATION FORM
- Process flow
- Start an application
- Accessing and completing an application
- Pre-submission Check
- Submitting an application
- Post submission (what happens next?)
- Support for users
- Groups
The application will be available from GOV.UK via the Debt Advisor Tools and Information page: https://www.gov.uk/guidance/debt-advisor-tools-and-. The information you enter on each page will be automatically saved each time you move to a new section/page, navigate back to the home page of the application, or log out of the application. You can view an explanation of why an eligibility alert was displayed by clicking the red "View Eligibility Alerts" button on the right side of the application overview page.
You must ensure that all 8 sections of the application have been completed and the £90 fee has been paid before attempting to submit an application. Once you are satisfied that the application is complete, click the green "Submit Application" button at the bottom of the "Application Summary" page. Any questions about the use of the application and these guidance notes should be directed to your Competent Authority, who will then refer the matter to the Insolvency Service (where applicable).
By creating a group or joining an existing group, you will be able to take ownership of cases belonging to other group members. You can find the "Group Assignment" box in the upper right corner of the home page. By joining a group, you will be able to access and work on examples from other group members.
Appendix A - What data is collected in the application?
Appendix B - Application technical information
Personal details
Insolvency history
Employment
Assets
All other lump sum awards paid, granted or claimed must be disclosed as assets. Please provide a description and valuation of any tools or other equipment used by the applicant in the course of their own employment/profession. Items essential to the applicant's self-employed business or profession will be disregarded when assessing the DRO admission criteria.
Personal injury awards payable before a DRO is granted are treated as assets and must be disclosed. They therefore do not need to be disclosed on the application, but if the award is then used to make a large purchase during the moratorium period, rather than living expenses, the DRO can be revoked on the basis that the applicant's assets exceed £ 1000. Properties held in trust by the applicant need not be disclosed if the applicant is not a beneficiary of the trust.
Essential household items include clothing, bedding, furniture, household appliances, etc. that meet the basic household needs of the applicant and his family. If the claimant has tried to get back the money they owe but has been unable to do so, the debt may be considered 'bad and uncollectible' and should not be recognized as an asset. If the bailiff sells the items before the application is filed, the item must be removed from the list of the applicant's assets and the corresponding liability must be adjusted.
Pensions
Assets & payments history: undervalue transactions
Assets & payments history: preferred creditor transactions
Creditors
Secured creditors may need to be listed twice on the application if the security is worth less than the total value of the loan. These can be recorded as normal liabilities that are written off when a DRO is created. Please note that a DRO is not recognized as a form of debt relief outside the UK.
Where such a clause exists, only fees and arrears up to the date of the DRO application must be included. Any amounts due and unpaid under their installment agreement must be included in the application. If the applicant's council tax is up to date in accordance with their installment agreement, there is no debt because the unpaid balance relates to future occupation of the home.
In this case, the application must state the entire requested amount on the final notice. The total amount still owed by the applicant in relation to the installment contract or conditional sale may, but does not have to, be included in the application. Any unpaid overdue installments must be included in the application.
Income and Expenditure
Fee payments
A DRO application can only be considered for decision once the application fee has been paid in full. As such, the fee for inclusion in a DRO must be paid in full before the Official Receiver will process the application. Once the application is submitted, the system runs a check to confirm that the fee has been received in full.
Only after receipt of the fee has been confirmed will the application be forwarded to the official recipient for assessment. Please consider the consequences of deferring payment after an application has been submitted in relation to the charges on the debts they owe and the possibility that the applicant's debts may increase as a result of these charges. In the situation where the applicant's total liabilities are too close to the £20,000 limit, and where, taking into account the applicant's personal circumstances, there is a reasonable and real prospect that his total liabilities will exceed the limit Before the applicant can pay the application fee, the intermediary must notify the applicant that delaying payment may result in the application being rejected and the application fee being forfeited if the applicant pays it.
In the event that an applicant completes an application over a number of visits, the intermediary must update any liability figures on the application form to take into account any further accrued interest or costs, which may have increased the applicant's total liability during the delay. Due to the automated nature of the application process, no manual intervention can take place and an application will be automatically canceled if payment is not received before determination. When the application is submitted, this results in an undertaking by the applicant to the Insolvency Service that the form has been completed in full and with the applicant's consent, as it is the intermediary who will submit the applicant's application on his behalf.
How to Pay
Applicants can only pay in cash at the counter at the Payzone facilities or post offices as any payment must be made in available funds. Intermediaries should advise applicants that where the applicant has found a charity willing to pay all or part of the application fee on their behalf, the Insolvency Service may only accept a check as payment in these circumstances. If a charitable contribution covers only part of the application fee, the applicant must pay the outstanding balance at a Payzone facility or post office.
Checks from charities should be made payable to “The Insolvency Service (DRO)” and sent to the address below. All checks sent to the Insolvency Service must bear the application ID number. Intermediaries must also instruct applicants to include a cover note with the check stating the applicant's name, address, and application ID number (the number automatically generated when an online application form is initiated). Please note: If the applicant's fee is paid by charity cheque, the intermediary must allow for normal bank clearance periods for the check to clear before submitting the application to the Insolvency Service.
If the application is submitted on the same day the check is sent to the Insolvency Service, there is a good chance that the check will not be cleared within the required time, resulting in the application being cancelled. If an applicant pays the application fee (in whole or in part) and subsequently decides not to submit the application, he must request a refund through the intermediary. No interest is paid on funds held by the Insolvency Service pending a DRO application.
Glossary
Debt Management Plan (DMP) – With the help of the debt counseling sector, the individual sets up a timetable for repaying their debt to their creditors, which involves making regular payments to an agent. Hire Purchase Agreement – An agreement that is a secured loan that gives the provider of the goods certain rights over the goods until the hire purchase agreement is completed. The goods are rented during the contract period, after which the person renting the goods can choose to buy them.
Judgment creditor – A creditor who has a judgment and who can enforce (usually by a bailiff) a judgment based on a court decision. Creditors cannot continue or initiate legal proceedings against the debtor for repayment of these debts without the permission of the court. Official Bankruptcy Administrator – Court official and civil servant employed by the Insolvency Service, which administers and investigates bankruptcies and compulsory liquidations, and administers DRO and FTVA.
Eligible Debts - A list of the debts scheduled in an application for a debt relief order. Secured creditors – Creditors who have a specific claim on one or more assets of the debtor, such as a mortgage or mortgage on a house. Unsecured creditors – Creditors who have no specific claim on the debtor's assets for all or part of the amount owed to them.
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