I hope this is in the right section. It is a question about debt rather than WTC so I think it is. I would appreciate any advice. I was on working tax credits for three years but received a letter half-way through the third year telling me I had been overpaid. The reason they gave was that they didn't believe I was self-employed and wanted the money back for that tax year and the one before. I think their decision was based on incorrect records and probably orders from above to claw back as much money from people as they can. Evidence of their poor records was that I was sent a tax return for the year before I was self-employed when I had been registered as unemployed. I was fined for not filling it in on time - I had tried but the questions didn't apply to me so I couldn't fill it in properly. The fine was lifted on appeal. A couple of years later, after they demanded money back, there were various letters from me and from them and a couple of 'phone conversations. They gave different reasons why they thought I wasn't eligible for WTC. In 2011 they demanded just over £3,000 back. A letter this year demanded a slightly different amount - different by a few pounds and pence. I have also received a reminder to fill in my tax return for 2012-2013 during which I was registered as unemployed and made a fortnightly declaration that I hadn't done any work. Why can't these departments of the government communicate with each other? I am going to the CAB to ask their help in getting a Debt Relief Order (DRO). I will ask them for advice but they couldn't give me any advice a couple of years ago when I asked them about the WTC nonsense. o I thought it a good idea to ask for advice here. I want to know if the tax people can place any obstacle in my way if I tell them I'm applying for a DRO. I think I will need to tell them because the latest demand for payment says they will pass the debt on to a debt collection agency. As I understand it, if I apply for a DRO and name the tax people as the creditor for the alleged debt but they pass it on to some other organisation, the DRO will be invalid as it will contain wrong details about the alleged creditor. If someone could advise me about the possibilty of an obstacle being put in my way or about a change of 'creditor' I would be most obliged. I also have been told that I owe over £400 in unpaid NICs. This was my fault as I didn't apply for an abstention due to low income. I was working too hard and was dealing with a serious injury and simply forgot about NI contributions. This has some bearing on the WTC case because the NIC people have demanded payment for a time after the WTC was stopped and I was registered as unemployed. It is only for a few weeks but shows how lax they all are in sharing information and keeping records. I was going to seek help from the tax ombudsman but have decided that would be a waste of time. I am due to be on pension credit in about 6 months from now and want to get my tax and NIC affairs settled in case it has an adverse effect. Just thought of another question - pension credit might leave me with more than £50 a month disposable income. Will this affect the DRO? So that's three questions: 1. Can the scroundrels do anything to stop me getting a DRO? 2. If it's passed to a debt collector will it invalidate the DRO application? 3. Will pension credit have an effect? Thanks in advance.

I have epilepsy, and every now and then I need to stop working because I go through a spell of having fits. This is beneficial for both myself and those around me. I have currently been out of work since October '11. The bad thing that comes from this is that it I am not able to earn money to do nice things, or pay for nice things for example my mobile phone bill. I currently live with my girlfriend who is paying for all the bills and is essentially running the house on her wage alone; because of this she cannot afford to pay the phone debt. I don't claim disability or unemployment benefits because I'm not eligible. I'd like to know can I hold off from paying my mobile phone debt until I can start working again, or is there any sort of disability grant which I can get to pay it which I can pay back when I start working? Currently, Orange are raping my credit rating and there is nothing I can do. I have to sit back and allow it. Help, anyone?

Hi Forum Members I am serious about applying for a DRO, as I am unable to repay debts while on benefits income due to incapacity to work. My circumstances fulfill DRO requirements, I have done an online assessment, and am aware of the £90 fee. What are the actual proceedures, do I now get an application form from an intermediary ?? Do intermediaries charge for making the application for a DRO ?? Who would be an efficient intermediary to use ?? Any advice welcome. Thanks Kolin 8)

I have a council tax debt from about 5 years ago (been chasing me for years and I just ignore them) now the council have written saying they are petitioning for my bankruptcy (about a month ago). I own them about £2,000. I also have other unsecured debts totaling about £7,000 altogether (housing benefit overpayment, credit cards, utility bills). I have no income other than Job Seekers Allowance and Housing Benefit. I have no assets other than clothes and ordinary household items (like a DVD player and clothes). I'm worried this 'bankruptcy petition' could arrive any day, I've just been looking up my options and discovered the Debt Relief Order (DRO) and it likes like I might be eligible, I have no idea what to do If I inform my creditors I am applying for DRO will it slow them down until it's gone through? Please HELP!