Debt, DROs and what to do now

Smoke · 10 November 2017 at 3:18PM

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.

Smoke · 10 November 2017 at 3:25PM

I live in NI just in case that makes any difference

sourcrates · 10 November 2017 at 3:39PM

Hi,

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

If not, why not ? did the DRO fail ?

Smoke · 10 November 2017 at 3:45PM

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 · 10 November 2017 at 3:48PM

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 · 10 November 2017 at 3:51PM

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.

sourcrates · 10 November 2017 at 3:53PM

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 ?

Smoke · 10 November 2017 at 3:54PM

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 · 10 November 2017 at 3:57PM

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 · 10 November 2017 at 4:03PM

Smoke wrote: »

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

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?

Smoke · 10 November 2017 at 4:13PM

StopIt wrote: »

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?

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

Debt, DROs and what to do now

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