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    • fatbelly
    • By fatbelly 14th Aug 17, 8:28 PM
    • 11,528 Posts
    • 8,661 Thanks
    fatbelly
    Hi, I have my barcode ready and will be making the payment tomorrow and seeing cab on Friday to get the application submitted. My question is, I just realised that I might owe some money to my previose employer as I had some underhours before my maternity leave and I never returned to work. They haven't let me know officially if I owe anything and I am not sure when I will find out. What will happen if the company ask me for money back once Iam on DRO? Thank you.
    Originally posted by Pattie94
    It won't have any effect on the DRO, nor will the DRO have on it.

    However, unless it is essential that you do your DRO immediately, why not wait until you know what the debt is and put it in.
    • Pattie94
    • By Pattie94 14th Aug 17, 9:14 PM
    • 25 Posts
    • 3 Thanks
    Pattie94
    Thank you. Is it still ok to wait even if I have the barcode?
    • fatbelly
    • By fatbelly 15th Aug 17, 5:53 AM
    • 11,528 Posts
    • 8,661 Thanks
    fatbelly
    Thank you. Is it still ok to wait even if I have the barcode?
    Originally posted by Pattie94
    I believe the barcoded letter under DRO2 says you should complete your payments within 6 months.

    They also said this under DRO1, but never applied it, and eventually removed the wording.

    But if your intermediary submits the application then it fails if payment isn't completed in 10 days.
    • Amy13
    • By Amy13 1st Sep 17, 9:21 AM
    • 33 Posts
    • 11 Thanks
    Amy13
    Hi guys, I'm thinking about applying for a DRO but have some questions/queries before I speak to a professional.

    1 -
    I successfully completed an IVA on 28th October 2011 (almost 6 years ago) and still have the paperwork to confirm this and am wanting to know if I can apply for a Debt Relief Order now.
    The information I've seen online seems confusing... you can't apply for DRO if you have had one in the past 6 years or are currently in an IVA/Bankruptcy but what about an IVA in the past 6 years???
    Would I need to wait for the 6 year mark before I can continue will an application? Also, I am aware that yes, I was in debt, sorted my life out and then got back into debt so I do feel embarrassed and ashamed but I am not in as much debt as I was before the IVA and would really like a fresh start to put this behind me once and for all.

    2 -
    I have read that you are not contacted when the 12 months has finished. Do they contact you to find out if your circumstances have changed and ask if you can pay towards the debts? I work full time and will receive an annual pay rise (won't be much though!) plus the tax code changes in April so will be paying a little less tax then. I would hate to go through 12 months of not paying creditors and for interest and charges to be added and for the DRO to fail after 12 months. Also, do you get a Certificate of Completion which you can show to creditors if they demand money after 12 months?

    3 -
    I have 2 Creditors which are Barclaycard and Vanquis, Credit Card debt. I owe £8300 in total. I am up to date on payments, have just paid my minimum payment on both accounts. Every month I have paid the minimum and the amount gets added back in interest so the debt is not going down in any way. I have spent credit on both accounts after making payments and when the interest has been added this has taking me over the credit limit. Would my application be affected if I have spent credit on these accounts and at what stage would I stop making the minimum payments? I am wanting to keep phone calls/letters/visits from my creditors to a minimum. After receiving a letter from Vanquis this week about going over my credit limit and if I didn't pay this amount immediately then I could be asked to pay the balance in full has scared me but also given me a push to sort all of this out.

    4 -

    I do not own property. I live with my parents and they do own the house. Would they be affected in any way? I pay them 'Board' every month and this is a big chunk of my wage as they are now both retired.
    I used the online calculator on Step Change and a DRO was one of the options given as when I put all figures in my Surplus Income came to less than £50. I also have no assets apart from a laptop and phone but nothing else.

    5 -

    How quickly does the process of applying for a DRO and being accepted take? Applying for an IVA was a harrowing experience and took almost a year (I did initially go to a unscrupulous company).I have paid my minimum payments on my accounts this month and would be unlikely to be able to pay the £90 fee until next months wage so should I wait until I have the £90?

    6 -

    The only negative of a DRO for me would be that I would be on the Insolvency Register again but I was on it for nearly 6 years so what is another 15 months hey? Can anyone confirm that there are no ads in local papers for DRO's?
    • sourcrates
    • By sourcrates 1st Sep 17, 2:32 PM
    • 12,461 Posts
    • 11,855 Thanks
    sourcrates
    Hi guys, I'm thinking about applying for a DRO but have some questions/queries before I speak to a professional.

    1 -
    I successfully completed an IVA on 28th October 2011 (almost 6 years ago) and still have the paperwork to confirm this and am wanting to know if I can apply for a Debt Relief Order now.
    The information I've seen online seems confusing... you can't apply for DRO if you have had one in the past 6 years or are currently in an IVA/Bankruptcy but what about an IVA in the past 6 years???
    Would I need to wait for the 6 year mark before I can continue will an application? Also, I am aware that yes, I was in debt, sorted my life out and then got back into debt so I do feel embarrassed and ashamed but I am not in as much debt as I was before the IVA and would really like a fresh start to put this behind me once and for all.

    2 -
    I have read that you are not contacted when the 12 months has finished. Do they contact you to find out if your circumstances have changed and ask if you can pay towards the debts? I work full time and will receive an annual pay rise (won't be much though!) plus the tax code changes in April so will be paying a little less tax then. I would hate to go through 12 months of not paying creditors and for interest and charges to be added and for the DRO to fail after 12 months. Also, do you get a Certificate of Completion which you can show to creditors if they demand money after 12 months?

    3 -
    I have 2 Creditors which are Barclaycard and Vanquis, Credit Card debt. I owe £8300 in total. I am up to date on payments, have just paid my minimum payment on both accounts. Every month I have paid the minimum and the amount gets added back in interest so the debt is not going down in any way. I have spent credit on both accounts after making payments and when the interest has been added this has taking me over the credit limit. Would my application be affected if I have spent credit on these accounts and at what stage would I stop making the minimum payments? I am wanting to keep phone calls/letters/visits from my creditors to a minimum. After receiving a letter from Vanquis this week about going over my credit limit and if I didn't pay this amount immediately then I could be asked to pay the balance in full has scared me but also given me a push to sort all of this out.

    4 -

    I do not own property. I live with my parents and they do own the house. Would they be affected in any way? I pay them 'Board' every month and this is a big chunk of my wage as they are now both retired.
    I used the online calculator on Step Change and a DRO was one of the options given as when I put all figures in my Surplus Income came to less than £50. I also have no assets apart from a laptop and phone but nothing else.

    5 -

    How quickly does the process of applying for a DRO and being accepted take? Applying for an IVA was a harrowing experience and took almost a year (I did initially go to a unscrupulous company).I have paid my minimum payments on my accounts this month and would be unlikely to be able to pay the £90 fee until next months wage so should I wait until I have the £90?

    6 -

    The only negative of a DRO for me would be that I would be on the Insolvency Register again but I was on it for nearly 6 years so what is another 15 months hey? Can anyone confirm that there are no ads in local papers for DRO's?
    Originally posted by Amy13
    Replied on your other thread.
    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/
    • fatbelly
    • By fatbelly 1st Sep 17, 6:28 PM
    • 11,528 Posts
    • 8,661 Thanks
    fatbelly
    Amy

    1. You cannot be in two different insolvency solutions at the same time but if yur IVA is completed/terminated then you are free to enter a DRO

    2. After 12 months your debts are written off; there is no certificate issued. The only debts that can be pursued after the moratorium are fraudulent debts.

    3. If you're doing a DRO, stop paying all the creditors. You need to treat them all equally and the best way to do that is to pay them all nothing.

    4. Your parents would not be affected

    5. Start the ball rolling now. The limiting factors for your intermediary are getting the Experian report and you paying the £90. A month or two is typical.

    6. There are no ads in local papers but if you are a national celebrity the gutter press may spot you on the Insolvency Register.
    • Amy13
    • By Amy13 24th Sep 17, 6:21 PM
    • 33 Posts
    • 11 Thanks
    Amy13
    Hi,

    Are there any DRO experts out there who could check my figures for me? I'm feeling anxious that it won't be accepted.

    My income is £1206​

    Board: £500
    Travel: £100
    Food/Toiletries: £210
    Meals at work: £100
    Phone/Internet: £50
    Laundry £20
    Clothing: £75
    Dentist/Optics: £15
    Medication: £30
    Magazines: £5
    Hair: £20
    Emergencies: £30
    Hobbies: £38

    Total: £1193
    • Faisal2110
    • By Faisal2110 26th Oct 17, 5:34 PM
    • 3 Posts
    • 0 Thanks
    Faisal2110
    Advice fro DRO
    I have been reading through the forum and couldn't find an answer so thought I would post my dilemma - using my hubby's account!
    My husband owns our house (his name on deeds only) and pays a mortgage. We have a joint bank account and have a loose understanding that he pays most of the bills and I pay for the groceries and other misc items. I have about £12k on credit cards (on my name) from a few years which I pay off monthly. I recently lost my job and my husband has been trying to keep us afloat but can no ;longer afford to do so. My question is how would I show my expenses when, in essence, my husband has been paying for almost everything? All I have as income currently is child tax credits and child benefits. I really need this to work as we simply cannot cope. In the mean time I'm still looking for a job but it's been months. I genuinely have zero money for myself but not sure how to show it?
    • fatbelly
    • By fatbelly 26th Oct 17, 7:08 PM
    • 11,528 Posts
    • 8,661 Thanks
    fatbelly
    The intermediary would look at your, and your husband's income. Then look at your household expenditure. You would take the relevant proportion of that, e.g. if your income is 10% of the total then you show 10% of each expenditure item. If the end surplus is <£50 per month then you meet that criterion.
    • Faisal2110
    • By Faisal2110 26th Oct 17, 7:31 PM
    • 3 Posts
    • 0 Thanks
    Faisal2110
    That's great - thank you. Question is though, if my husband has money left over and I have zero income, surely that is his money and not mine? If that makes any sense? How can I have £50 left if I don't earn any money?
    • fatbelly
    • By fatbelly 26th Oct 17, 9:13 PM
    • 11,528 Posts
    • 8,661 Thanks
    fatbelly
    That's great - thank you. Question is though, if my husband has money left over and I have zero income, surely that is his money and not mine? If that makes any sense? How can I have £50 left if I don't earn any money?
    Originally posted by Faisal2110
    You said 'my income currently is child tax credits and child benefits'

    and asked 'how would I show my expenses '

    That is the question I answered.

    Now if you are saying 'my income is zero', then your proportion of the expenses would be zero and your surplus would be zero.

    But I would want proof that the child benefit and child tax credit claims were not in your name.
    • Faisal2110
    • By Faisal2110 27th Oct 17, 9:12 AM
    • 3 Posts
    • 0 Thanks
    Faisal2110
    Firstly, apologies Fatbelly for not making myself clear. The benefits I get are in both my husbands and my name for our three children. That is what I meant by I have nothing as all we get is child tax credits and child benefit which helps with the children's costs (clothes, lunch money, misc)? The child benefit is my husbands name alone if that makes any difference?
    • fatbelly
    • By fatbelly 27th Oct 17, 2:22 PM
    • 11,528 Posts
    • 8,661 Thanks
    fatbelly
    Firstly, apologies Fatbelly for not making myself clear. The benefits I get are in both my husbands and my name for our three children. That is what I meant by I have nothing as all we get is child tax credits and child benefit which helps with the children's costs (clothes, lunch money, misc)? The child benefit is my husbands name alone if that makes any difference?
    Originally posted by Faisal2110
    Then you could pitch it as having no income.

    It makes little difference. I assume you would show as <£50 whichever way it is calculated
    • debt doctor
    • By debt doctor 27th Oct 17, 3:58 PM
    • 4,165 Posts
    • 5,832 Thanks
    debt doctor
    Hi,
    Intermediaries do 'variations on a theme' when it comes to the £50 disposable income figure - not right or wrong - just different.
    For me, in your case, I would apportion 50% of your tax credits (as it is a joint claim) as your income and 'spend' it on a portion of your household expenses.
    If your income was apportioned as a percentage of household income and similar with household expenses then that would be fine too.


    In any event, it seems you will qualify.


    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 ***
    • Just Peachy
    • By Just Peachy 3rd Nov 17, 11:26 AM
    • 165 Posts
    • 115 Thanks
    Just Peachy
    Hi, I have spoken with a CAB advisor and I have been told that I do qualify for a DRO, which I am happy about. but what concerns me (and I forgot to ask at my appointment) is what happens if I get a new job and therefore more income after getting a DRO. I currently only work 12 hours per week due to having young children but I would like to get a job with more hours some time next year (once my mother in law is able to help with childcare) or another job to work alongside the job I have. so I would probably be going from working 12 hours per week to about 25 hour per week, which would obviously up my income a bit. Is this allowed while having a DRO?
    • fatbelly
    • By fatbelly 3rd Nov 17, 12:32 PM
    • 11,528 Posts
    • 8,661 Thanks
    fatbelly
    Hi, I have spoken with a CAB advisor and I have been told that I do qualify for a DRO, which I am happy about. but what concerns me (and I forgot to ask at my appointment) is what happens if I get a new job and therefore more income after getting a DRO. I currently only work 12 hours per week due to having young children but I would like to get a job with more hours some time next year (once my mother in law is able to help with childcare) or another job to work alongside the job I have. so I would probably be going from working 12 hours per week to about 25 hour per week, which would obviously up my income a bit. Is this allowed while having a DRO?
    Originally posted by Just Peachy
    If your surplus income increases to over £50 per month, then you should let the DRO Unit know.

    Just because you earn more, it doesn't mean you breach the limit.

    For example your starting point may be negative - it would take a lot to get you to >+50

    You would also get less means-tested benefit if your wages increase - less housing benefit, council tax benefit, income support/JSA/ESA - it might not make a great difference to your surplus.

    Working more days may mean greater travel expenses too.
    • Just Peachy
    • By Just Peachy 3rd Nov 17, 4:35 PM
    • 165 Posts
    • 115 Thanks
    Just Peachy
    If your surplus income increases to over £50 per month, then you should let the DRO Unit know.

    Just because you earn more, it doesn't mean you breach the limit.

    For example your starting point may be negative - it would take a lot to get you to >+50

    You would also get less means-tested benefit if your wages increase - less housing benefit, council tax benefit, income support/JSA/ESA - it might not make a great difference to your surplus.

    Working more days may mean greater travel expenses too.
    Originally posted by fatbelly
    Thank you - do you have to let them know of these changes for the whole 6 years the dro is on credit file or is it just the 12 months after the dro starts?
    • fatbelly
    • By fatbelly 3rd Nov 17, 4:49 PM
    • 11,528 Posts
    • 8,661 Thanks
    fatbelly
    Thank you - do you have to let them know of these changes for the whole 6 years the dro is on credit file or is it just the 12 months after the dro starts?
    Originally posted by Just Peachy
    Just the 12 months
    • brute03
    • By brute03 14th Nov 17, 10:02 AM
    • 5 Posts
    • 0 Thanks
    brute03
    Hi

    Just been reading through the posts above and are very helpful as I am looking to go through a DRO so thank you.

    My question is I have 2 cars 1 on HP (which I will be gladly to give back) and the other we own. I have read somewhere if it is worth more than £1000 (it's probs worth between £1000-£1500) then they would use whatever it's worth towards paying off some debt. My question is, we would really rely on the 2nd car as I am the only person that earns in the family, do they take this in to consideration or not?

    Also

    Once DRO is accepted, what is life like within those 12 months I.e are hou checked up on? Do you feel like you are being watched etc?

    Thank you
    • fatbelly
    • By fatbelly 14th Nov 17, 7:21 PM
    • 11,528 Posts
    • 8,661 Thanks
    fatbelly
    Hi

    Just been reading through the posts above and are very helpful as I am looking to go through a DRO so thank you.

    My question is I have 2 cars 1 on HP (which I will be gladly to give back) and the other we own. I have read somewhere if it is worth more than £1000 (it's probs worth between £1000-£1500) then they would use whatever it's worth towards paying off some debt. My question is, we would really rely on the 2nd car as I am the only person that earns in the family, do they take this in to consideration or not?

    Also

    Once DRO is accepted, what is life like within those 12 months I.e are hou checked up on? Do you feel like you are being watched etc?

    Thank you
    Originally posted by brute03
    I'm not sure what you have been reading but that's a bit garbled

    1. You say you are going for a DRO but the car 'we own' is worth £1000-1500. You need to work out whose car it is. If it's your partner's, then it is nothing to do with your DRO. If it is yours, then you need to get a valuation from Parkers Guide because if it is valued at over £1k, it precludes you from a DRO. It's black and white - you either get the DRO or you don't. No-one will be selling your car or trying to get the equity out of it.

    2. It is your responsibility to inform the DRO team of any relevant changes during the moratorium. There are no routine checks.

    3. Cars on HP are a complex area in DROs. If you are committed to losing it then do a voluntary termination now and get the final balance figure to put into your DRO

    If you have further questions, please ask.
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