Debt Relief Orders (DRO) - Information & help thread
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Info from Government website :
https://www.gov.uk/government/publications/getting-a-debt-relief-order/getting-a-debt-relief-order
National Debtline: https://www.nationaldebtline.org/EW/factsheets/Pages/37%20EW%20Debt%20relief%20orders%20%28DROs%29/Default.aspx
https://www.gov.uk/government/publications/getting-a-debt-relief-order/getting-a-debt-relief-order
National Debtline: https://www.nationaldebtline.org/EW/factsheets/Pages/37%20EW%20Debt%20relief%20orders%20%28DROs%29/Default.aspx
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Replies
Just a reminder to look out for those who may benefit from the new debt relief orders ( DRO) coming in to force in April this year. There is info on the net but these are the main practical features;
Total debt must be no more than 15k
Must not be a homeowner ( not even with neg equity)
Assets must be below £300 although a vehicle upto £1000 is always exempt.
Disposable income ( after all reasonable expenses) of £50 or less. ( No provision of IPA's )
ONLY the debts listed will be wriiten off. If a debt comes to light that pushes over the 15k limit then the order will be revoked.
The conditions regarding restrictions on employment, borrowing, trading whilst undischarged are all the same as BR.
Debts that can go in to BR can go in to a DRO.
If applicants financial situation improves within the year then then the order may be revoked or applicant may be asked to contributr towards debts.
No early discharge.
MAIN ADVANTAGES;
There is no involvment of the court.
The cost is £90, and is able to be paid in instalments through payzone and post office outlets.
There is no local newspaper advert or placed in the London Gazette. DRO info is available on insolvency service web site.
You must apply through an intermediary ( CAB, CCCS, NAT DEBTLINE ETC) so advice must have been taken. Intermediary will asist with application, which is on line only. No fee can be charged by any intermediary.
My thoughts;
Are that most will be excluded via the 15k ceiling. Definately not suitable for someone in possession proceedings who may expect mort shortfall. Those applying must be certain about what they owe and who to. (biggest practical problem I think)
Useful for non home owners, with comparatively low debts who struggle to find the £360 + for BR.
What do you think ?
MAKE SURE that you apply for your credit report from Experian before you apply for a DRO. If your report says you are over 15k or your personal details are incorrect then your DRO may fail.
Best
DD
Impartial debt advice services: Citizens Advice Bureau Find your local CAB *** National Debtline - Tel: 0808 808 4000*** BSC No. 100 ***
Also are the conditions the same as BR ie. On your credit file for 6 years like BR?
BSC Member 176
BR 23/06/08
ED 22/01/09
Credit file BR fall off date: 24/06/14 :beer:
I was wondering if there would be any new system brought in considering the amount of people who have been going BR.
Thanks DD, useful info.
Yes discharge after 1 year, credit file 6 years as you say.
Impartial debt advice services: Citizens Advice Bureau Find your local CAB *** National Debtline - Tel: 0808 808 4000*** BSC No. 100 ***
There have certainly been a fair few members here for who this would be a lifeline.
I do worry though, and I am aware about glasshouses and stones, that this may make it easier for people not to worry about being in debt because there is an "easy way out".
I guess it is up to the credit providers to be more vigilant in who they offer credit to and to have sensible credit limits ...... ( speaking from experience ) there is still too much raising of limits and credit being offered, especially by sub prime providers.
IMHO :rolleyes:
SA
Is there a set date for this to come into effect?
BSC Member 176
BR 23/06/08
ED 22/01/09
Credit file BR fall off date: 24/06/14 :beer:
DD
Impartial debt advice services: Citizens Advice Bureau Find your local CAB *** National Debtline - Tel: 0808 808 4000*** BSC No. 100 ***
I was wondering the other day why they cannot allow you a crises loan to go BR is you met a certain criteria which would obvoiusly have to be paid back but might be easier for them in instalments
BSC Member 176
BR 23/06/08
ED 22/01/09
Credit file BR fall off date: 24/06/14 :beer: