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  • FIRST POST
    • 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 2
    • Amy13
    • By Amy13 9th Sep 17, 10:19 AM
    • 33 Posts
    • 11 Thanks
    Amy13
    No, my IVA is not on the Insolveny register! I was checking daily after my IVA completed and it came off within 2 weeks. This is back in 2011! I haven't had any need to contact the IP in over 6 years!
    • fatbelly
    • By fatbelly 9th Sep 17, 10:29 AM
    • 11,547 Posts
    • 8,682 Thanks
    fatbelly
    Sounds like something's gone wrong between the IS and Experian, then.

    Try a complaint to help@creditexpert.co.uk
    • Amy13
    • By Amy13 9th Sep 17, 10:32 AM
    • 33 Posts
    • 11 Thanks
    Amy13
    Thanks, I'm doing that now, sending photo of certificate too. Would it be worth contacting the Insolvency Service?
    • fatbelly
    • By fatbelly 9th Sep 17, 10:35 AM
    • 11,547 Posts
    • 8,682 Thanks
    fatbelly
    My guess is that Experian will just remove it - may take a couple of weeks, though.
    • Amy13
    • By Amy13 9th Sep 17, 10:37 AM
    • 33 Posts
    • 11 Thanks
    Amy13
    Thanks, hopefully they will.
    • Amy13
    • By Amy13 22nd Sep 17, 6:33 PM
    • 33 Posts
    • 11 Thanks
    Amy13
    Hi,

    Are there any DRO experts out there who could check my figures for me?

    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
  • National Debtline
    Hi Amy


    It's very difficult to say definitively here whether your budget figures pass muster for the purposes of a DRO. There are guidelines (not publicly available) on what amounts are considered reasonable for households of different sizes to spend on the likes of communications/leisure, housekeeping and other personal costs. There can be some flexibility in these guidelines in exceptional cases e.g. special dietary requirements.


    Ultimately, even if the intermediary handling your application feels the figures may be deemed excessive, they can submit your application but at the same time should warn you of the risk that you will lose your £90 fee if it ends up being rejected by the Insolvency Service.


    My advice would be to simply run the figures by your intermediary at Stepchange and seek their view.


    Dennis
    @natdebtline
    We work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps
    • Amy13
    • By Amy13 28th Sep 17, 6:48 PM
    • 33 Posts
    • 11 Thanks
    Amy13
    I'm about to send my application back to Step Change. Does anyone know what the correct address to send it to as I never received a pre addressed envelope. Also, do I need to give them a copy of my Credit Report from Experian? (I've had the IVA removed)
    • sourcrates
    • By sourcrates 29th Sep 17, 12:42 PM
    • 12,477 Posts
    • 11,867 Thanks
    sourcrates
    I'm about to send my application back to Step Change. Does anyone know what the correct address to send it to as I never received a pre addressed envelope. Also, do I need to give them a copy of my Credit Report from Experian? (I've had the IVA removed)
    Originally posted by Amy13
    From there website :

    Stepchange Debt Charity
    DRO Unit
    Wade House
    Merrion Centre
    LEEDS
    LS2 8NG
    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 Oct 17, 4:23 PM
    • 33 Posts
    • 11 Thanks
    Amy13
    Okay guys, I've sent my application off to Step Change! Managed to get the old IVA taken off my Experian credit report by complaining on social media, nothing else was working.
    Is it Step Change who process the application or a third party? How long is it likely to take from now to being accepted? It's really hard for me to phone them as their opening hours are 9-5 and I'm at work then and having a private conversation on my mobile phone at work is difficult. Anyone else going through this process right now? I'm feeling anxious about it all. I haven't paid my credit cards this month (payment not due yet so not had any hassle as yet) but I feel really guilty for spending money, even on food.
    • sourcrates
    • By sourcrates 1st Oct 17, 5:24 PM
    • 12,477 Posts
    • 11,867 Thanks
    sourcrates
    Stepchange act as the intermediary.

    I am unsure of there processing times just now, used to take about a week or less, but depends on how busy they are.

    They are active on the boards weekdays, just drop them a PM.
    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/
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