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  • FIRST POST
    • Smoke
    • By Smoke 10th Nov 17, 2:18 PM
    • 13Posts
    • 10Thanks
    Smoke
    Debt, DROs and what to do now
    • #1
    • 10th Nov 17, 2:18 PM
    Debt, DROs and what to do now 10th Nov 17 at 2:18 PM
    Hi,
    Just looking some advice. I'm 32 now, in my 20s I built up a lot of debt. It started with Nationwide saying that "as a responsible lender" and I wasn't paying off my overdraft every month they were removing it and I had 30 days to pay it back.
    I actually stupidly let this happen twice. Not responsible of them if you ask me but gotta admit it I was stupid and working for a diff bank selling debt products so was used to thinking it was OK.
    The OD was about £1150 and my wages were about £1100 so didn't cover it, or something around that.
    So they offered me a loan to pay it off, 20% on a small loan or take out more at 3%. Stupidly I thought I might have some self control and hold onto the rest or do something useful with it, that didn't happen. I had a great credit rating because I was constantly renegotiating my loan, paying off credit cards etc but it kept building.
    When I was 25 there was tragedy in the family and I just spiraled, not caring what debt I racked up but kept getting good bits paid here and there.
    2 yrs ago we became homeless, lived with my mum then last year I lost my Job in Feb, by Sept I had a DRO in place. But because I started working again in June the debt collectors have started contacting me again, namely Wescot.
    On my credit file I have 2 outstanding overdrafts which I think I can cover eventually, the banks seem to have frozen them due to DRO but I guess they could resume interest again now.
    The main advice I've been given by stepchange is my best option is probably an insolvency which lasts 5 years and I can only have £50 spare out of my wages per month. TBH I'd rather go back to being homeless and unemployed for another year to get it wiped out.
    The accounts have all been closed on my credit file and it looks as tho I can start building up my score again, but I don't know if this is the case. I take it a Wescot debt wont show in your credit file?

    I'm sorry for the life story but any advice would be appreciated.
    Last edited by Smoke; 10-11-2017 at 2:19 PM. Reason: Spelling error
Page 1
    • Smoke
    • By Smoke 10th Nov 17, 2:25 PM
    • 13 Posts
    • 10 Thanks
    Smoke
    • #2
    • 10th Nov 17, 2:25 PM
    • #2
    • 10th Nov 17, 2:25 PM
    I live in NI just in case that makes any difference
    • sourcrates
    • By sourcrates 10th Nov 17, 2:39 PM
    • 12,427 Posts
    • 11,828 Thanks
    sourcrates
    • #3
    • 10th Nov 17, 2:39 PM
    • #3
    • 10th Nov 17, 2:39 PM
    Hi,

    Did you not include all your debts in the debt relief order ?

    If not, why not ? did the DRO fail ?
    I'm a Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
    Bankruptcy And Living With It, boards. "I volunteer to help get your forum questions answered and keep the forum running smoothly".
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.

    For free debt advice, contact either : Stepchange, National Debtline, or, CAB.
    For Legal advice see : http://legalbeagles.info/
    • Smoke
    • By Smoke 10th Nov 17, 2:45 PM
    • 13 Posts
    • 10 Thanks
    Smoke
    • #4
    • 10th Nov 17, 2:45 PM
    • #4
    • 10th Nov 17, 2:45 PM
    I tried to. The DRO was fine, but I wasn't really looking at it properly at the time (I've downloaded the Mental Health & Debt 2017 PDF and reading through atm) I sent details of all my accounts and did it through CAP.
    But I think because one of the accounts is in joint name it couldn't be closed, but could be frozen... or not included at all not sure. But the bank wouldn't take either of our names off it.
    The other one is, surprisingly (!) my nationwide bank account who kept saying they didn't receive docs when CAP said they sent them...
    • Smoke
    • By Smoke 10th Nov 17, 2:48 PM
    • 13 Posts
    • 10 Thanks
    Smoke
    • #5
    • 10th Nov 17, 2:48 PM
    • #5
    • 10th Nov 17, 2:48 PM
    Sorry it wasn't clear, the DRO ran from Sept 2016- Sept 2017 but because I was working again within the 12 months I think they wanted to cancel it but I never followed up on it and now since sept I've had Wescot on me, and possible the banks I don't answer the numbers I don't know. I'll admit I've been avoiding and head in the sand. Trying really hard not to
    • StopIt
    • By StopIt 10th Nov 17, 2:51 PM
    • 1,371 Posts
    • 1,167 Thanks
    StopIt
    • #6
    • 10th Nov 17, 2:51 PM
    • #6
    • 10th Nov 17, 2:51 PM
    If you had a joint account, the DRO would remove you from it, leaving the other party.
    See here: https://www.citizensadvice.org.uk/debt-and-money/debt-solutions/debt-relief-orders/debt-relief-orders-explained/how-income-debts-and-belongings-are-assessed-for-a-debt-relief-order/


    During the 12 month DRO period you should have informed the OR of any forgotten/unlisted debts. Also see here:


    https://www.citizensadvice.org.uk/debt-and-money/debt-solutions/debt-relief-orders/while-a-debt-relief-order-is-in-place/forgotten-a-debt-dros/



    Now it's too late to do that, so seek advice from a debt charity (Links in mine and Sourcrates signatures) to deal with whichever debts were left and any further ones since.
    I'm a Board Guide on the Debt Free Wannabe, Credit Cards and Loans boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Any views are mine and not the official line of moneysavingexpert.com. Board guides are not moderators. If you spot an inappropriate or illegal post then please report it to forumteam@moneysavingexpert.com

    In debt and looking for help? Look here for the MSE Debt Help Guide.
    Also, If you need any free and impartial debt advice, the National Debtline, Stepchange, and the CAB can help.
    • sourcrates
    • By sourcrates 10th Nov 17, 2:53 PM
    • 12,427 Posts
    • 11,828 Thanks
    sourcrates
    • #7
    • 10th Nov 17, 2:53 PM
    • #7
    • 10th Nov 17, 2:53 PM
    Did you receive anything from the insolvency service to say the DRO had failed ?
    If not, then its safe to assume the DRO completed successfully, so if one of the debts that is been chased now, was included, you can write and tell them so.

    It matters not if the creditor didn't get the letter from the IS, if it was included, then its binding.

    You will need evidence of your DRO though, do you still have the paperwork ?
    Last edited by sourcrates; 10-11-2017 at 2:55 PM.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
    Bankruptcy And Living With It, boards. "I volunteer to help get your forum questions answered and keep the forum running smoothly".
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.

    For free debt advice, contact either : Stepchange, National Debtline, or, CAB.
    For Legal advice see : http://legalbeagles.info/
    • Smoke
    • By Smoke 10th Nov 17, 2:54 PM
    • 13 Posts
    • 10 Thanks
    Smoke
    • #8
    • 10th Nov 17, 2:54 PM
    • #8
    • 10th Nov 17, 2:54 PM
    Thanks StopIt will do. But I remember it being explicitly stated to us that they could do nothing with the joint account unless we both wanted to apply for a DRO, by CAP as well as the bank.
    Ah well too late for that now like you say I guess, unless I can dig out an email somewhere
    • Smoke
    • By Smoke 10th Nov 17, 2:57 PM
    • 13 Posts
    • 10 Thanks
    Smoke
    • #9
    • 10th Nov 17, 2:57 PM
    • #9
    • 10th Nov 17, 2:57 PM
    Yes sourcrates I do have it all together with references etc. Should I just get in touch with CAP again? Not to be disparaging, they were absolutely lovely but they kinda put me off with inviting me to church functions, Christmas hamper and trying to set me up on play dates with a young missionary!
    As I said they were lovely people but when you can barely speak to your own friends or family it was a bit much at the time
    • StopIt
    • By StopIt 10th Nov 17, 3:03 PM
    • 1,371 Posts
    • 1,167 Thanks
    StopIt
    Thanks StopIt will do. But I remember it being explicitly stated to us that they could do nothing with the joint account unless we both wanted to apply for a DRO, by CAP as well as the bank.
    Ah well too late for that now like you say I guess, unless I can dig out an email somewhere
    Originally posted by Smoke

    Who told you that? I mean, it's not really relevant as it is a complete lie, but if you have in writing any evidence of this, you should raise an official complaint because while you being removed from the joint debt may have caused problems for the other party, from your point of view that isn't your problem.


    As for the other debt, if it was in the application but isn't in the DRO according to the OR, you need to again find out why and get the CAP to sort that out.


    However, if you started work in June, during the 12 month period you must have also notified the OR of change in circumstance. Did you do this?
    I'm a Board Guide on the Debt Free Wannabe, Credit Cards and Loans boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Any views are mine and not the official line of moneysavingexpert.com. Board guides are not moderators. If you spot an inappropriate or illegal post then please report it to forumteam@moneysavingexpert.com

    In debt and looking for help? Look here for the MSE Debt Help Guide.
    Also, If you need any free and impartial debt advice, the National Debtline, Stepchange, and the CAB can help.
    • Smoke
    • By Smoke 10th Nov 17, 3:13 PM
    • 13 Posts
    • 10 Thanks
    Smoke
    However, if you started work in June, during the 12 month period you must have also notified the OR of change in circumstance. Did you do this?
    Originally posted by StopIt
    Yes I did over the phone and they were to send me a form, which is why I think it failed as sourcrates says it might have done but I rec'd nothing. Maybe somehow they have the wrong address for me but I got my original docs ok.

    I'll get onto insolvency service first, see what happened to DRO in Sept 2017.

    And yes I'm going to look through my emails because I was definitely told this and the account in question could have been easily handled by the other party
    • fatbelly
    • By fatbelly 10th Nov 17, 6:44 PM
    • 11,517 Posts
    • 8,651 Thanks
    fatbelly
    If you're saying the DRO either completed or failed in Sept 2017 it should still be on the register as it stays there for 3 months. It's a separate register for NI

    https://insolvency.economy-ni.gov.uk/InsolvencyPublic/CMSWizardManager.aspx


    .
    • Smoke
    • By Smoke 13th Nov 17, 11:22 AM
    • 13 Posts
    • 10 Thanks
    Smoke
    If you're saying the DRO either completed or failed in Sept 2017 it should still be on the register as it stays there for 3 months. It's a separate register for NI

    https://insolvency.economy-ni.gov.uk/InsolvencyPublic/CMSWizardManager.aspx


    .
    Originally posted by fatbelly
    Thanks

    It says "Current Status: Debt Relief Order. Moratorium period ended on (Sept)"

    Not sure what that means? But I've just got my Wescot letter (after the calls) and it seems (by the value) that it might be related to the joint account they told me I couldn't take the name off of. Tbh if everything else is "gone" and I just have to sort this account out I'd be elated
    • StopIt
    • By StopIt 13th Nov 17, 11:24 AM
    • 1,371 Posts
    • 1,167 Thanks
    StopIt
    Thanks

    It says "Current Status: Debt Relief Order. Moratorium period ended on (Sept)"

    Not sure what that means? But I've just got my Wescot letter (after the calls) and it seems (by the value) that it might be related to the joint account they told me I couldn't take the name off of. Tbh if everything else is "gone" and I just have to sort this account out I'd be elated
    Originally posted by Smoke

    That looks like it means it has went through and all debts related to it are gone.


    I'd still be pursuing this debt as it should have been included in the DRO, but you'll need legal advice on the matter.
    I'm a Board Guide on the Debt Free Wannabe, Credit Cards and Loans boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Any views are mine and not the official line of moneysavingexpert.com. Board guides are not moderators. If you spot an inappropriate or illegal post then please report it to forumteam@moneysavingexpert.com

    In debt and looking for help? Look here for the MSE Debt Help Guide.
    Also, If you need any free and impartial debt advice, the National Debtline, Stepchange, and the CAB can help.
    • Smoke
    • By Smoke 13th Nov 17, 11:26 AM
    • 13 Posts
    • 10 Thanks
    Smoke
    Thank you guys so much, I really appreciate it. I can start rebuilding now, but I will look into it StopIt, thank you again
    • fatbelly
    • By fatbelly 13th Nov 17, 6:36 PM
    • 11,517 Posts
    • 8,651 Thanks
    fatbelly
    2 yrs ago we became homeless, lived with my mum then last year I lost my Job in Feb, by Sept I had a DRO in place. But because I started working again in June the debt collectors have started contacting me again, namely Wescot.
    On my credit file I have 2 outstanding overdrafts which I think I can cover eventually, the banks seem to have frozen them due to DRO but I guess they could resume interest again now.
    Originally posted by Smoke
    You seem confused by what a DRO is. Your intermediary (CAP) should have explained this. It is an insolvency process like bankruptcy but a cut-down version for those who meet the relevant criteria.

    You are required to list all your debts and all (except excluded debts) are frozen for 12 months under a 'morotorium' then written off. Excluded debts are things like criminal fines and student loans, not ordinary credit debts.

    Thanks

    It says "Current Status: Debt Relief Order. Moratorium period ended on (Sept)"

    Not sure what that means?
    Originally posted by Smoke
    It means your DRO completed and your debts are now written off.

    You need to check the letter you were sent at the start of the process. If you no longer have it I believe you can request it again from:

    Department for the Economy
    Netherleigh
    Massey Avenue
    Belfast
    BT4 2JP

    Telephone: 028 9052 9900

    If the debt you are concerned about is listed your liability for it is now gone and you must not make payment to it. It is true that if it was a joint debt, the other party is now liable.

    If it was not listed in your DRO, yet you told your intermediary about it, then that organisation (CAP in this case) will be insured against their negligence and you can claim against them. Without going into details I have known this happen.

    However if you did not declare it and it would have taken you over the 20k limit, the result could be different - post again if that is the case.
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