Debt Relief Orders (DRO) - Information & help thread

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  • fatbelly
    fatbelly Posts: 20,380
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    Declare everything to the Intermediary and let them work it out - it's they who will have to answer any tricky questions. Although, in 7 years of doing these I can only think of one time that I was asked to explain my figures.

    Your other question is more difficult. Better to play this with a straight bat I think. Your debts are yours, hers are hers. Switching debt around in an obvious way, knowing that you are going for a DRO, could result in problems.
  • ch1978
    ch1978 Posts: 5 Forumite
    fatbelly wrote: »
    Declare everything to the Intermediary and let them work it out - it's they who will have to answer any tricky questions. Although, in 7 years of doing these I can only think of one time that I was asked to explain my figures.

    Your other question is more difficult. Better to play this with a straight bat I think. Your debts are yours, hers are hers. Switching debt around in an obvious way, knowing that you are going for a DRO, could result in problems.

    Just wasn't sure if it would look like I have too much income coming in but I suppose if I was to declare all my bills(such as rent) as the full amount instead of 50% then this would make sense.

    Was going to transfer one of her credit card balances as I now have 0% interest whereas she hasn't but will hold off doing that if it could effect things.
  • sourcrates
    sourcrates Posts: 28,717
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    lowey133 wrote: »
    Hello everyone,


    I am finally facing up to my debt. I earn about £1,450 after tax.


    I have debts of £14,000 on credit cards.


    I pay my girlfriend board. Depending what I put for this changes me being within the £50 a week limit.


    I've also been balance transferring between my 4 credit cards and have paid off lumps sums into some more than others.


    I have put all the details into Step Change and they advised DRO.


    I have a few questions?


    How are the outgoings scrutinised? Do I need receipts from the barbers etc?


    Having paid off £500 of a credit card recently with gambling winnings (I'm getting help for my gambling) and other balance transfers will this look like favouritism?


    How do I value my car? Range is £750 to £2k. It's an old MX5. What happens if I sell this before DRO?


    How is the amount of board I pay proven? It's not exactly declared as income and is mates rates.


    Any other advice greatly received.

    Hi,

    Stop paying your creditors for starters, dont make any more "one off payments", you are not scrutinized, no, what you tell the intermediary is whats recorded, no proof is required, except for your budget, in the form of an income/expenditure form.

    So make sure your budget leaves you with less than £50 a month.

    You do not have to provide proof of any payments, and your car value is taken in the same way, if its an old car, price it at the bottom end of the scale, no one will physically check on this.
    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-letter
  • sourcrates
    sourcrates Posts: 28,717
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    lowey133 wrote: »
    Just pay the minimum amount?

    Why bother if your going for a debt relief order ?

    Your just throwing your money away really arnt you ?

    Your DRO can be up and running in around 48 hours once submitted and approved.
    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-letter
  • hullvon
    hullvon Posts: 15 Forumite
    both on benefits
    my debt £10.000

    esa claim in husbands name claiming for me
    iib in husbands name
    dla for husband in his name
    dla for me in my name

    would a dro be the best way forward for me in my own name

    any advise would be very helpful

    debt taken on before husband had amputations
  • sourcrates
    sourcrates Posts: 28,717
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    hullvon wrote: »
    both on benefits
    my debt £10.000

    esa claim in husbands name claiming for me
    iib in husbands name
    dla for husband in his name
    dla for me in my name

    would a dro be the best way forward for me in my own name

    any advise would be very helpful

    debt taken on before husband had amputations

    Hi,

    DLA not taken into account for income purposes.

    Wether its your best option or not is hard to say without knowing your full circumstances, usually if your on a very low income, its an ideal solution.

    Do you meet all the other DRO criteria ?
    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-letter
  • Guys,

    I recently posted about applying for a dro, one problem that's come to light.... I took my last loan out on 1st Feb... can this company object as it's within 3 month?? I'm being told it doesn't matter and then it does. Thanks
  • sourcrates
    sourcrates Posts: 28,717
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    Slateford1 wrote: »
    Guys,

    I recently posted about applying for a dro, one problem that's come to light.... I took my last loan out on 1st Feb... can this company object as it's within 3 month?? I'm being told it doesn't matter and then it does. Thanks

    Well they could, but its unlikely that they will.

    Most of the time they just go along with whatever is proposed.

    See what your intermediary has to say about it.
    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-letter
  • just a quick question as i am still trying to get all my figures together for my debt and completeing the paperwork, is the council tax automatically taken into account as a debt and included in the DRO, i am getting a lot of conflicting information about this. thanks.
  • Hi All. I believe that DRO's are due to be reviewed this year, with the possibility of limits raised.

    Does anyone know when this review is due or has it happened yet ?

    I'm looking at applying for a DRO , but my debts are very close to £20K and my car is worth around£1300.

    Thanks for any replies.
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