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    • Amy13
    • By Amy13 1st Sep 17, 9:22 AM
    • 33Posts
    • 11Thanks
    Amy13
    Applying for a DRO - Questions and Queires
    • #1
    • 1st Sep 17, 9:22 AM
    Applying for a DRO - Questions and Queires 1st Sep 17 at 9:22 AM
    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?
Page 1
    • sourcrates
    • By sourcrates 1st Sep 17, 2:29 PM
    • 12,477 Posts
    • 11,868 Thanks
    sourcrates
    • #2
    • 1st Sep 17, 2:29 PM
    • #2
    • 1st Sep 17, 2:29 PM
    Hi,

    In answer to your questions :

    (1) There is no requirement for you to wait 6 years before applying for a DRO, you can apply now.

    (2) Once your DRO is approved, all your creditors are contacted by the insolvency service to make them aware of it, you will receive a conformation letter as well.

    After that you wont hear from the IS or your creditors again, except if they send you a statement (which they are still required to do).
    After 12 months your debts are wiped out, you dont get any conformation of this at all, so keep the DRO paperwork you are sent.

    You only need to contact the IS if your circumstances change and you no longer meet the £50 limit, no checks are normally carried out on you after acceptance, its a voluntary process, but there are severe consequences for not playing by the rules.

    (3) You should treat all creditors fairly, that normally means stop paying them anything, and tell them your applying for a DRO.

    (4) Wont effect anyone else but you.

    (5) Up until a few months ago it was a very quick process, less than a week, but i think a new system caused some problems, and i know stepchange quote around about a months waiting time at present, so not too long really.

    (6) DRO`s only appear on the insolvency register.

    Hope that helps.
    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/
    • Amy13
    • By Amy13 1st Sep 17, 2:43 PM
    • 33 Posts
    • 11 Thanks
    Amy13
    • #3
    • 1st Sep 17, 2:43 PM
    • #3
    • 1st Sep 17, 2:43 PM
    Thanks for the reply.

    I have another couple of questions...

    Would I need to declare my previous IVA?

    Do you need to make a statement about how you came into the debts?

    Does the intermediary and IS have a preference on the amount of surplus income? Nearer to £0 or £50???

    Also, are your bank statements looked at closely? I usually drawer money from the bank to pay for things, including my board payment, would they need to see exactly where the money is going or do transactions need to be paid for by using my debit card?
    Last edited by Amy13; 01-09-2017 at 3:00 PM.
    • sourcrates
    • By sourcrates 1st Sep 17, 4:13 PM
    • 12,477 Posts
    • 11,868 Thanks
    sourcrates
    • #4
    • 1st Sep 17, 4:13 PM
    • #4
    • 1st Sep 17, 4:13 PM
    Yes you will have to declare your IVA, its one of the questions in the application form.

    Your answer wont be held against you dont worry.

    Not a statement no, just a basic reason, for example marriage breakup/job loss etc.

    As long as its less than £50 you qualify, its a simple yes/no answer.

    As far as i am aware all they ask for is your last two payslips, not bank statements.

    I would recommend you use stepchange or CAB as intermediary for your DRO.
    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/
    • Amy13
    • By Amy13 1st Sep 17, 4:22 PM
    • 33 Posts
    • 11 Thanks
    Amy13
    • #5
    • 1st Sep 17, 4:22 PM
    • #5
    • 1st Sep 17, 4:22 PM
    Thanks for replying!

    I am going to go with Step Change.

    My main worry now is they will be a problem with my application as I have used credit, up until this week so I am wondering if I need to wait? I haven't taken any new credit out though.
    • sourcrates
    • By sourcrates 1st Sep 17, 4:40 PM
    • 12,477 Posts
    • 11,868 Thanks
    sourcrates
    • #6
    • 1st Sep 17, 4:40 PM
    • #6
    • 1st Sep 17, 4:40 PM
    Thanks for replying!

    I am going to go with Step Change.

    My main worry now is they will be a problem with my application as I have used credit, up until this week so I am wondering if I need to wait? I haven't taken any new credit out though.
    Originally posted by Amy13
    Using credit will not Barr you from applying, only disposing of assets or not treating creditors fairly are sources of potential problems.
    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/
    • Jr14
    • By Jr14 1st Sep 17, 5:45 PM
    • 52 Posts
    • 2 Thanks
    Jr14
    • #7
    • 1st Sep 17, 5:45 PM
    • #7
    • 1st Sep 17, 5:45 PM
    I initially looking online at stepchange but never got sent the paperwork so have done it over the phone with cab. It's taken a while (2weeks ish) and mines not even been sent to the DRO unit yet I don't think
    Do the DRO unit then send you a proper application out with a barcode to pay once they receive the info from cab do you know?
    It's making me so anxious waiting!!
    • sourcrates
    • By sourcrates 1st Sep 17, 8:34 PM
    • 12,477 Posts
    • 11,868 Thanks
    sourcrates
    • #8
    • 1st Sep 17, 8:34 PM
    • #8
    • 1st Sep 17, 8:34 PM
    I initially looking online at stepchange but never got sent the paperwork so have done it over the phone with cab. It's taken a while (2weeks ish) and mines not even been sent to the DRO unit yet I don't think
    Do the DRO unit then send you a proper application out with a barcode to pay once they receive the info from cab do you know?
    It's making me so anxious waiting!!
    Originally posted by Jr14
    You will get a letter with a barcode, you pay the £90 fee, it's submitted, you get a response usually within a few days.
    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/
    • Amy13
    • By Amy13 2nd Sep 17, 7:58 AM
    • 33 Posts
    • 11 Thanks
    Amy13
    • #9
    • 2nd Sep 17, 7:58 AM
    • #9
    • 2nd Sep 17, 7:58 AM
    I have had a look at the Step Change checklist.

    There is a section to fill about a pension fund.

    I do have a pension with my employer, this is where they make a contribution each month and so do I. The pension is with an external company not my employer. Is this what they are referring to?
    I'm 36 so won't be getting my pension anytime soon.

    Also, are your employers contacted? They wouldn't be a problem but I'm a private person and don't want everyone knowing my business!
    • Amy13
    • By Amy13 2nd Sep 17, 9:02 AM
    • 33 Posts
    • 11 Thanks
    Amy13
    Are your account numbers the number on your cards? If so, one isn't matching up on noddle.
    • sourcrates
    • By sourcrates 2nd Sep 17, 10:58 AM
    • 12,477 Posts
    • 11,868 Thanks
    sourcrates
    I have had a look at the Step Change checklist.

    There is a section to fill about a pension fund.

    I do have a pension with my employer, this is where they make a contribution each month and so do I. The pension is with an external company not my employer. Is this what they are referring to?
    I'm 36 so won't be getting my pension anytime soon.

    Also, are your employers contacted? They wouldn't be a problem but I'm a private person and don't want everyone knowing my business!
    Originally posted by Amy13
    Are your account numbers the number on your cards? If so, one isn't matching up on noddle.
    Originally posted by Amy13
    Unless you are able to now, or will become able to claim your pension rights in the next 12 months (which you wont), you can answer no to the pensions question, there is no employer contact.

    Depends on what type of account it is, but usually thats the case yes.
    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/
    • Amy13
    • By Amy13 2nd Sep 17, 11:07 AM
    • 33 Posts
    • 11 Thanks
    Amy13
    Thanks!

    I have an account with Vanquis and I have checked my credit report on Noddle. I noticed the account number (was only showing the last 4 digits) was different to my card number. I have phoned them this morning to confirm which is the correct account number. I was told the card number is the account number and the other number (the one showing on the report) is their account number for me that they use just for their purposes. Seems unclear what my account number actually is. If I gave Step Change the card number and when my credit report was checked they would be a discrepancy.

    Also, my wage slips show that I am paying into a Pension so would they not question this if I left it blank?
    • sourcrates
    • By sourcrates 2nd Sep 17, 11:19 AM
    • 12,477 Posts
    • 11,868 Thanks
    sourcrates
    Thanks!

    I have an account with Vanquis and I have checked my credit report on Noddle. I noticed the account number (was only showing the last 4 digits) was different to my card number. I have phoned them this morning to confirm which is the correct account number. I was told the card number is the account number and the other number (the one showing on the report) is their account number for me that they use just for their purposes. Seems unclear what my account number actually is. If I gave Step Change the card number and when my credit report was checked they would be a discrepancy.

    Also, my wage slips show that I am paying into a Pension so would they not question this if I left it blank?
    Originally posted by Amy13
    Simpley ask the creditor the correct account number.

    You must make sure all details about your debts are accurate, they are not checked up on, the info you give them, is the info they work with.

    You need a list of all your creditors, that list should contain account number, amount outstanding, and what type of debt it is, plus the creditors name and address.

    You also need copies of each of your credit reports (Noddle/Experian/Equifax) all your accounts must be showing on your credit reports.

    Before you physically submit the paperwork, you must ring each creditor and obtain an up to date balance of each account, this is to make certain you dont breach the 20k limit.

    As i said, if you are not eligible to take your pension within the next 12 months, for DRO purposes, it can be ignored.

    https://debtcamel.co.uk/is-your-pension-safe-in-a-dro/
    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/
    • Amy13
    • By Amy13 2nd Sep 17, 11:32 AM
    • 33 Posts
    • 11 Thanks
    Amy13
    I did ask which was the correct account number and they said the card number is the one that I would use but it's different on the credit report so I'm worried about the discrepancy.

    Also, on the Step Change checklist it didn't say I needed to send copies of the Credit Reports.
    • fatbelly
    • By fatbelly 2nd Sep 17, 11:49 AM
    • 11,550 Posts
    • 8,683 Thanks
    fatbelly
    Put both numbers on the application separated by a /

    Your employer details are only on there in case there is an attachment to earnings that needs to stop. That's what I was told. No-one contacts the employer and the DRO teamdoes not see your wage slips.

    Stepchange however may well want to see your wage slips, will get their own credit report(s) on you, and may want to put that pension plan in rather than make a false declaration. There is no downside to this. Again, what I've been told is that they are just checking that it is a valid pension and not someone squirrelling away thousands in a savings account or ISA, saying 'that's my pension'
    • sourcrates
    • By sourcrates 2nd Sep 17, 12:11 PM
    • 12,477 Posts
    • 11,868 Thanks
    sourcrates
    Also, on the Step Change checklist it didn't say I needed to send copies of the Credit Reports.
    Originally posted by Amy13
    This is mainly for your own benefit so you dont accidentally miss an old debt you may of forgotten about.
    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/
    • Amy13
    • By Amy13 3rd Sep 17, 10:07 AM
    • 33 Posts
    • 11 Thanks
    Amy13
    Thanks for the advice!

    One more question -

    My parents are going to be putting the house on the market within the next 12 months. They are wanting a smaller property (I would be going with them for now). They don't have a mortgage now, own the house outright and won't need a mortgage for the new property.

    Would me being in a DRO have any impact on them being able to put the house on the market, selling the property and buying a new one?
    • sourcrates
    • By sourcrates 3rd Sep 17, 11:31 AM
    • 12,477 Posts
    • 11,868 Thanks
    sourcrates
    Thanks for the advice!

    One more question -

    My parents are going to be putting the house on the market within the next 12 months. They are wanting a smaller property (I would be going with them for now). They don't have a mortgage now, own the house outright and won't need a mortgage for the new property.

    Would me being in a DRO have any impact on them being able to put the house on the market, selling the property and buying a new one?
    Originally posted by Amy13
    No impact whatsoever.

    Debt is unique to the individual, not a property, or to anyone else who is not the named debtor.
    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/
    • Amy13
    • By Amy13 9th Sep 17, 9:07 AM
    • 33 Posts
    • 11 Thanks
    Amy13
    I've checked my credit reports with Noddle and Equifax, all good.

    I've now downloaded my Experian report and my IVA is still on there under Public Record Information:

    Information type: VOLUNTARY ARRANGEMENT Date: 30/01/06 Case Number: IVA0*******
    Court name: UNKNOWN End Date: 00/00/00 Source:INSOLVENCY SERVICE

    My IVA ended 28/10/2011

    I have the Certificate of Completion and a letter from the IVA company (Grant Thornton) with confirmation of my fully implemented IVA.

    How would I get this removed by Experian and would it effect my DRO application?
    • fatbelly
    • By fatbelly 9th Sep 17, 10:07 AM
    • 11,550 Posts
    • 8,683 Thanks
    fatbelly
    I presume it's on the Insolvency Register too. Ask your IP to report the IVA's completion.

    Yes the DRO team will check the insolvency register and Experian and unless they have reason to do otherwise would reject an application from someone who was showing as being in another form of insolvency.

    For safety make sure your intermediary puts in the 'additional notes' section that the certificate of completion is available and the Experian information is incorrect
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