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Debt Relief Orders (DRO) - Information & help thread
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Hi there just to let you all know my dro has been approved!!! So happy. Thanks for everyone's help and advice.0
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Hi there just to let you all know my dro has been approved!!! So happy. Thanks for everyone's help and advice.
Missed this before, sorry, very well done !!
You must be very relieved.I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter0 -
I have a friend who owes about £14,000 most of it to one creditor with a CCJ other than that they are (JAMS) just about managing.
Does a DRO have to be agreed by your creditors?Thanks, don't you just hate people with sigs !0 -
If you apply for the DRO is the admin the same as Bankruptcy, i.e. they take away your bank accounts etc.
Also does applying for a DRO count as acknowledging the debt and reset the 6 year statute date?
Considering that debt is sold for pennies in the pound after the credit cards have been paid out on insurance they really should consider either lowering the amount of the debt or increasing the limit.Thanks, don't you just hate people with sigs !0 -
I have a friend who owes about £14,000 most of it to one creditor with a CCJ other than that they are (JAMS) just about managing.
Does a DRO have to be agreed by your creditors?If you apply for the DRO is the admin the same as Bankruptcy, i.e. they take away your bank accounts etc.
Also does applying for a DRO count as acknowledging the debt and reset the 6 year statute date?
Considering that debt is sold for pennies in the pound after the credit cards have been paid out on insurance they really should consider either lowering the amount of the debt or increasing the limit.
Cut and pasted from a recent Sourcrates post:
Basic Criteria for a debt relief order :- Must not be a homeowner,
- Debts less than £20,000 (went up from 15k a year ago),
- Can have a car worth up to £1000,
- No other assets of more than £1000,
- Must have £50 or less left at month end, after all essential payments have been made (not inc debt repayments),
- Cannot have had a DRO in last 6 years.
If he meets those criteria then it's 99% certain a DRO would work. Creditors can object but their objection must be that one of the above criteria are breached, and evidence that.
Bank accounts are usually untouched unless they are overdrawn, in which case they are treated as a debt.
However Nat West have been known to play silly bu99ers and downgrade your account after a search of the insolvency register.
The statute barred angle is irrelevant as a DRO prevents court action while it is in progress and the debt is written off at the end of the 12 month moratorium.0 - Must not be a homeowner,
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Thanks for your help I will pass it on.
One other thing, about income.
How is income over and above their salary counted , they get DLA for disabled child for example, I know that this is not counted for benefits purposes because it goes towards meeting their needs.
Same question for child benefit and child tax credits?
Do they make any allowances for supporting kids in Uni in budget?Thanks, don't you just hate people with sigs !0 -
Thanks for your help I will pass it on.
One other thing, about income.
How is income over and above their salary counted , they get DLA for disabled child for example, I know that this is not counted for benefits purposes because it goes towards meeting their needs.
Same question for child benefit and child tax credits?
Do they make any allowances for supporting kids in Uni in budget?
DLA is disregarded. With my clients I list it as income, and then list it as disability expenses.
Child benefit and child tax credits are an income to be considered, and the necessary expenditure for that child should be listed too.
Funding a child at uni would not be an allowable expense in my opinion. If an individual can do that then i dont see how they could technically declare themselves insolvent - a student could seek p/t work, grants and student loan to support their living.0 -
Also does applying for a DRO count as acknowledging the debt and reset the 6 year statute date?
There's an interesting argument in bankruptcy to say it does not. From the Technical Manual:40.11 Statute-barred debts (limitation)
The legislation [note 15] provides for time limits beyond which action cannot be taken in order to, for example, recover debts (see Chapter 31.9, paragraphs 31.9.143 to 31.9.145).
It should also be noted that a limitation period will continue to run through the period of bankruptcy . This is likely to be of importance in relation to those debts that are not released on discharge, such as debts incurred through fraud and in particular where the official receiver is considering a suspension of the bankrupt’s discharge as this may prevent the possibility of recovery of those debts.
Whether that also applied to a DRO would make an interesting court case.0 -
Hi all;
After being ripped off by my business partner I found myself in some debt. This may be useful to anyone else in the same boat as me so I thought I would pop it here to help:
Firstly I delayed doing anything for 4 years. I contacted Step Change and paid £1 a month to my creditors and promptly simply ignored it. On hindsight that was rather stupid due to period of time it takes for the DRO to vanish from your credit report. I would have about 1.5 years remaining rather than 6 as I do now. Tip number 1 - if you have debts you cannot hope to pay ACT NOW!
Step Change were great. So a few years down the line I registered for a DRO as there was clearly no hope. It's £90 fee with no promise of acceptance but it is cheaper than being bankrupted. I submitted today and paid the fee awaiting the outcome. The upper limit is now £20,000 as these are so popular (God help the state of people wealth in the UK).
The main thing you MUST MUST do is get all the figures together. Get a credit report and ring everyone on there. It does take time but I discovered another £2k NOT mentioned that I would remain liable for so tip 2 - check and check again! Companies are extremely slimy and will try trap you so people - be thorough!
Now the issue with a DRO is obviously your credit report is worth a little less than toilet roll so before you do ANYTHING get in touch with STEP CHANGE - they really can help!
Above all - NEVER, EVER, EVER panic over debt! It can happen to anybody even multi millionaires - It's not illegal to have debt. Remember that.
It's very distressing and you will feel alone but you're not - I have signed my today and I am happy to chat to anyone who feels bad about debt just comment below. It's you AND me
So, you've run up a debt for whatever reason. Life could have changed, you've just been a bit daft, you've lost a business anything there's a million reasons why you are now reading this but NEVER worry too much. It is serious but it's NOT life threatening.
Be ready to start again is all I can say. No matter what you had before that you can always begin again.
It's money and those that chase it will never be happy but YOU can be because like me - we've got nack all and we can REALLy begin again!
So if you're reading this with debt less than £20k speak to Step Change and learn everything you can about debt. If you owe more then bankruptcy is an option but again chat with Step Change but ether way DO NOT GET UPSET ABOUT IT!
Anyway, that's me for now and I will be signing in again as the days go by to let you know what effects and what I have learnt about financially destroying myself
If you are worried about debt drop me a message here. I cannot advise on money but I can on feelings you're having and that is MUCH more important no?
Knowledge is power - arm yourself with knowledge - the ride through debt is bumpy but the sun will ALWAYS rise.
Thanks for reading
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