The Insolvency Service Dro .......................

[ferret69]

I have received a letter from the Insolvency Service because a customer who owes us money has applied for a Debt Relief Order and got it, She owes in total about £14500 to 15 different companies, we are named in the letter as a " qualifying debt " along with the other 14, I have read the letter a few times but it still baffles me, it says I cant contact the customer and after 12 months the customer becomes free of any debt. All this sounds to be in favour of the bad debtor, so can I expect nothing to be paid back ??

[Xeronema]

You won't get anything unfortunately unless that person comes into money and even then I'd be surprised if you get anything back.

This happened to my uncles company. He was owed £34,000 and they went bust. He had to suck up the debt which nearly bankrupted him. Luckily my mum managed to get him out of the deep hole he was about to fall in.

It's not the best advice and I'm sure someone or others will offer something better. I can only speak from experience, sorry.

[hc4361]

This is what it means when people who owe money make themselves bankrupt or enter in to debt relief order - people like yourself suffer. The limit for a DRO is £15k so your customer knows exactly what he is doing.

https://www.citizensadvice.org.uk/debt-and-money/debt-solutions/debt-relief-orders/debt-relief-orders-explained/debt-relief-orders-what-you-need-to-know/

[ferret69]

Thanks hc, I've had a look at that link but it seems to inform the one who is in debt and how to help them, I can't really see anything about what the person who is owed the money can do, apart from nothing.

[hc4361]

ferrett, that's the point. There is nothing you can do except hope the person who owes you the money has a big win on the lottery.

I feel for you.

[THECORBYLOON]

You can object to it but no doubt that's in the letter you've had

https://www.insolvencydirect.bis.gov.uk/technicalmanual/Ch37-48/chapter46/Part%204/Part%204.htm

[ferret69]

Thanks guys, so its a win, win, win for the debtor, I can see this catching on !

[hc4361]

Many, many people do it, sadly. Live in rented accommodation, rack up enormous debts and then declare themselves bankrupt. A young man in the media did this when he spent thousands on cosmetic surgery to look like Joey Essex, so he effectively got it free.

[ferret69]

You can't owe more than £15,000 otherwise you don't qualify then it seems after 12 months the debt is written off, all the people who are owed money get is a letter.

[hc4361]

Yes, indeed. If they owe more than £15k they choose the bankruptcy option instead, which has exactly the same result. The creditors get no money.

[ferret69]

But the Insolvency Service get their money, they demand £90-00 up front from the person who supposedly has no money !!

[hc4361]

Yes, indeed.