Debt Relief Orders (DRO) - Information & help thread
Comments
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Hi guys
Have found myself in a very difficult and stressful time of my life recently. I have been suffering from a gambling addiction and depression which spiralled out of control the past few months.
It has left me in a very bad state of mental health and around £11k in debt, almost all due to gambling.
I cant afford the various monthly payments anymore on loans, payday loans, credit cards etc after my general living expenses and have missed payments.
My debts are
£7500 natwest loan
Overdraft £1000
Credit cards £1000
Payday loans £1000
I went through the process on the stepchange website, which at the end recommend DRO as the best option for my circumstances as i had around £45 surplus income left on my low income.
At first glance i do meet the requirements.
Debt under £20k, no car, no assets over £1000 etc.
My concerns are that do you think the dro agency or natwest themselves are likely to reject due to the history of my gambling and that the loans were very recently took out. (2-3 months ago)
Also what kind of proof if any is needed on your monthly expenditure? I tried to be as accurate and honest as possible. I normally pay board/rent etc to my parents in cash. Is this likely a problem.
Thanks for any advice0 -
It's possible you would get a DRRO (restriction order) but it's unlikely.
Most applications just sail through.0 -
Stuckinarut2017 wrote: »
Also what kind of proof if any is needed on your monthly expenditure? I tried to be as accurate and honest as possible. I normally pay board/rent etc to my parents in cash. Is this likely a problem.
Thanks for any advice
I dont think you have to supply bank statements, but your intermediary will ask to see pay slips to confirm your income, however, you do not need any proof of how that income is distributed or to whom, they just take your word for it basically.
So all you need to have proof of is your initial income from whatever source that may be.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 -
Great, thanks guys.
Currently waiting for my dro application pack to come through the post
Any ideas on cirrent timescales of the process with stepchange?
Thanks again0 -
Hi
stepchange advised me about 8 days there current waiting times. This was around 3 weeks ago.
good luck with your application.0 -
Hi all,
Hoping you can help! Spoke to CAB but no one seems to know the answer. I'm self employed as well and employed. My question is, how will a DRO affect my self employment? It is not a LTD company, and I am in partnership. Can I still run my business as usual? The debt I have is personal btw, nothing to do with the business.
Thanks!0 -
Confuzzledhelp wrote: »Hi all,
Hoping you can help! Spoke to CAB but no one seems to know the answer. I'm self employed as well and employed. My question is, how will a DRO affect my self employment? It is not a LTD company, and I am in partnership. Can I still run my business as usual? The debt I have is personal btw, nothing to do with the business.
Thanks!
I don't know why the CAB found that so difficult.
It won't affect you, except that it will put a mark on your credit file and you may find getting credit more difficult - but then you probably had defaults on file anyway.
Full list of restrictions (from the CAB site)
Debtors who have had their DRO application approved will be subject to the same restrictions as bankrupts. The main restrictions are as follows:
- The debtor must not obtain credit of £500 or more, either alone or jointly with another person, without disclosing to the lender that they are subject to a DRO. This restriction applies not only to the borrowing of money, but also to the obtaining of credit as a result of a statement or conduct made with the objective of securing credit, even though the debtor has not entered into a specific agreement for it. This would include, for example, ordering goods without requesting credit but then failing to pay for the goods when they are delivered
- The debtor may not carry on a business (directly or indirectly) in a name that is different from the name under which they were granted a DRO, without telling all those with whom the debtor does business the name under which they were granted a DRO
- The debtor may not be involved (directly or indirectly) with the promotion, management or formation of a limited company, and may not act as a company director, without the Court’s permission
- The debtor may not hold certain public offices4, or hold offices as a trustee of a charity or a pension fund
- The debtor will not be eligible to apply for a DRO again for six years
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Doesn't a DRO have the effect of severing a partnership though?0
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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
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