Debt Relief Orders (DRO) - Information & help thread

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  • The info comes from a meeting that 2 of my colleagues went to last week held by the instiute of money advisers, guest speaker was from insolvency public policy unit.

    From what she said it would appear that you could make payments during the order, the order being revoked for non payment, with monies already paid being lost.

    Its all new stuff, I just hope she was well informed !

    DD
    Debt Doctor, Debt caseworker, Citizens' Advice Bureau .
    Impartial debt advice services: Citizens Advice Bureau Find your local CAB *** National Debtline - Tel: 0808 808 4000*** BSC No. 100 ***
  • Hi Bat,

    Im sorry but I agree with your findings re the car, the debt attached to it and a DRO. From the knowledge of DRO's I have so far, I do think you would be at great risk of having the worst of both worlds, sorry.

    Im sure you have thought about this already, but id be negligent if I didnt mention it, Have you appealled the DLA decision ? You normally only have one month to do so, but an absolute limit of one year, in 'certain circumstances' which are not defined.

    Failing that why not make a new application ? With a new claim or an appeal it is important to get help from an 'experienced person' which would be a welfare rights specialist at the CAB, Law centre, or Local council.

    Best wishes

    DD
    Debt Doctor, Debt caseworker, Citizens' Advice Bureau .
    Impartial debt advice services: Citizens Advice Bureau Find your local CAB *** National Debtline - Tel: 0808 808 4000*** BSC No. 100 ***
  • OK, North East Derbyshire CAB, and debt doctor, time for me to be a bit selfish and think about me and mine for a change.

    I have been trying to keep my OH's creditors at bay using the CCA angle, which out of all her creditors has been successful so far bar two.

    One has yet to start any legal proceedings, but that is most likely just a matter of time, the only other problem issued CCJ proceedings last august that we successfully defended in February this year and got the case struck out, but due to a (dubious) technicality, the claimant has managed to get that judgement ignored (not set aside to the best of my knowledge, but the court has not said that in so many words, so don’t quite get it myself but that is a side issue right now)

    Now my OH is insolvent, so I have been trying to avoid the inevitable really, but going BR for her poses a problem.

    Up until the end of last year my OH was registered disabled, but thanks to the latest crack down last year her re-newel was refused, she used to get higher rate mobility lower rate care, on which basis she got a car on HP, now before you ask , when she started getting disability they only gave it one or two years at a time, which 8 (or more I think it is know) years ago stopped her getting a mobility vehicle as they required three years award before you qualified.

    But that was not a major problem as she could get private finance, so that’s what she did.

    Fast forward to now and she no longer gets disability, but is left with a car on HP, which is a couple of years of the point we could send it back with no penalty, incidentally, she failed to get DLA based on a medical she had to attend for incapacity benefit, thing is that medical was to asses her mental state as she was on IB for sever depression, nothing to do with here disability, which is a lower back problem, which an operation failed to cure(and made worse in my opinion, but that is yet another issue) so god knows how they reached that conclusion to disallow her DLA on that medical.

    Now our sole income is IB and CTC/CB, so keeping up those re-payments on the car are a struggle to say the least, but regardless of disabilities departments decision, she/we can not do without the car.

    That said even if we could we are still trapped.

    If my OH filed under the DRO the HP could not be included as far as I can see unless the car had been re-possessed and therefore the HP was no longer secured.

    Yet there is a BR clause in the HP contract, so if my OH went for a DRO the HP Company could foreclose, take the car, and come after my OH for the shortfall, which by my calculations will be 3-4k.

    The trouble is we have no way of knowing if they will use that clause, and to be honest im not sure that clause is even legal under the unfair terms in contracts act (or whatever it is called) if the payments are up to date, I have a strong feeling it is not, but am not sure enough to risk it.

    But this would not be included in the DRO as it was not a debt that could be included at the time, so we would end up with no car, yet a debt for more than the car is now worth.

    We have no chance finding the fees for a full BR to protect us from that possibility of the HP re-po’ing the car and the liability that would leave us with, so as far as I can see we are trapped, unless either of you two can see an answer in all that lot?

    Any suggestions?

    Hi,

    Apologies for not responding its a little hectic here at the moment.

    At this stage we could not really say anything different to Debt Doctor other than to tell you that the HP issue amongst others have been picked up on here also.

    One line in the Insolvency Service Intermediary DRO Guidence notes that relates to DLA may interest you, it goes like this- 'All benefits should be scheduled, including DLA and in the instance of DLA , it is acceptable to record the same amount as expenditure'

    Thought that one would make you smile.

    PS appreciate your feedback it does help us also.

    NED-CAB
  • Hi again Bat,

    Dont know of any plans.

    We have contacted a number of people at the Insolvency Service / OR office concerning further clarification with regards to DLA & bankruptcy since one of our previous posts with you and intend to make a statement on here soon.

    The key words / phrases here at the moment are Voluntary contributions & no enforcement and our position is still that DLA should NOT be used in any calculation towards any IPA or IPO.

    We know of no court case to date.

    Hope this helps for now.

    NED-CAB
  • debt_doctor
    debt_doctor Posts: 4,595
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    Hi,

    Apologies for not responding its a little hectic here at the moment.

    NED-CAB
    HEE HEE, not for me im on two weeks holiday !!:j

    No worries about CASE crashing for me !

    BEST WISHES

    DD
    Debt Doctor, Debt caseworker, Citizens' Advice Bureau .
    Impartial debt advice services: Citizens Advice Bureau Find your local CAB *** National Debtline - Tel: 0808 808 4000*** BSC No. 100 ***
  • HEE HEE, not for me im on two weeks holiday !!:j

    No worries about CASE crashing for me !

    BEST WISHES

    DD

    Hi there DD.

    Make sure you take your laptop with you and a stock of CW1s.

    And what about the DRO course?

    But have a nice holiday anyway.

    All the best to you

    Your collegues at NED-CAB
  • cabvol
    cabvol Posts: 39 Forumite
    Thanks DD for the reply, was hoping you may have had some extra info that may have helped, it was worth a try.

    As for DLA, she wont stand a chance at the moment, if my fathers case is anything to go by, he has just tried for DLA as he can now hardly walk, yet they have turned him down, and turned down his appeal on the medical he had, but having said that the medical was a farce, and he has proved it, and triggered a full enquiry into the guy who conducted it:D

    The whole system is a farce at the moment, but then you probebly already knew that

    Hello can we rewind on the DLA issue a bit

    As I understand it your partner has had her DLA stopped after a review of her claim?

    You have either asked for the decision to be Looked at again or have had a full tribunal hearing?

    If the decision has been looked at again and the decision has not been favorable then you still have the option of asking for a a full appeal using form GL24 this application has to be made within one month of the last decision. you Will need to specify your grounds for requesting an appeal.

    If there has been a change of circumstances since the decision was originally made for example the condition has worsened or there is a new condition then it is advisable to make a new claim as well as appealing the original. the Tribunal can only consider information/circumstances that was available at the time of the decision.

    If you have already been to a full appeal and unless the tribunal has made an error in Law then a new claim is probably the only option, again this most appropriate where the condition has worsened or there is a new condition for example the severe depression?

    It is important to consider that DLA is a benefit that is awarded for the effects of an illness on a persons ability to care for themselves and/or their mobility needs, not the illness it self.

    It is important to get as much supporting evidence as possible form any professional dealing with the person involved, however it is also important that those professionals are aware how the illness is effecting the persons ability to care or be mobile. I have often seen reports to the disability service from GP's who are supportive of their patients but know very little about their patients day to day needs - so let them know before applying. GP will often write a report supporting a claim however they will often charge for this too or refuse as the DWP will request a report anyway so best to let them know you are applying.

    You as a carer also have a role in this and it is often helpful to have a detailed report form a carer showing what help is provided on a daily basis.

    It will be useful if you at least discuss the claim with a welfare rights specialist but you may want to look at the information available here,
    http://www.disabilityalliance.org/f2.htm

    http://www.disabilityalliance.org/f23.htm

    http://www.adviceguide.org.uk/index/life/benefits/benefits_for_people_who_are_sick_or_disabled.htm#disability_living_allowance

    It is also worth getting a full benefit check, now as well as after any award of DLA as an award of DLA can mean you are entitled to other benefits for example carers allowance income support due to increased premiums which also applies to local housing allowance and council tax benefit.

    I do not see why if your wife satisfies the conditions for DLA why you should be put off claiming by the (bad) experiences of others.
  • JG1984
    JG1984 Posts: 138 Forumite
    Is the DRO definatly coming into place on the 6th april? also my sole income is benefits, carers allowance, DLA, child benefit and Child tax credits, which would be counted as income for working out the "£50 excess income" rule? i have a telephone app with cccs on monday will i be able to speak to them with regards to setting up a DRO when its up and running?
  • JG1984
    JG1984 Posts: 138 Forumite
    i have spoken to cccs today for debt advice appoitment, with regards to a dro the lady said that dla is counted as income for it as are all other benefits, so i think a dro is going to have a very limited number of people who it benefits
  • Ashabumbleb
    Ashabumbleb Posts: 42
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    Do you think I'd qualify for this?!

    I am a student, I have a creditors notice for £6hundred and something, I have a credit card debt outstanding somewhere in the region of £4,000, but they don't have my address, so I'd need to change it, I've not made any payments for a while.

    I have an overdraft of £1,000. I live at home with my parents, when I go back into work I will start paying them rent....I don't believe I have any assests worth over £300, and I would imagine that in the current car market my car can't be much over £1,000. If it was, would I be able to make my dad the car's actual owner, and I just have the use of it?!

    It would be lovely to be able to do this, and come out of uni with the option of a fresh start....particularly since I want to do a post graduate, but will need to get the money behind me before hand, which I wont be able to do if I am trying to pay my debts off.....I'm aware that I don't have an awful lot, and that it's my own fault for getting into this mess.....but I think that it's best to get rid and start afresh, even if the details are on my credit file....I'm not planning on getting a house anytime soon, I don't want to be able to have an overdraft facility or credit cards....this is why I got into the mess....can anyone advise?! Many thanks
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