Debt Relief Orders (DRO) - Information & help thread

cd36uk

Situation is I have approximately 4k of debts via credit cards, catalogues, store cards and door step loans.
Until around last september or so I managed to make the minimum payments relatively easily (not ideal but it kept the nasties from my door) However, when my ex stopped paying maintenance and my household income dropped by over £200 a month, I had to use my income to support the kids and this meant less left over in the pot for debts. Despite selling my car to help reduce outgoings, it is still a real struggle.
I am frantically job hunting, but currently on benefits living hand to mouth and drowning in the debts, unable to pay the minimum payments without going without necessities.
I am looking into my options, a debt management plan has been suggested to me by CCCS but I wonder if a DRO would be better for me.
Having done a statement of affairs, I have worked out that my spare income is just £44.04 per month. CCCS did not suggest a DRO however.
I note that assests must be less than £300, would that include my children's toys (ie xbox 360 or wii) and other things bought as gifts by family? I am so worried and just hope that I can get a DRO, and currently waiting for a call back from payplan as I type. Has anyone got any experience of them?

sarah1773

Please can someone advise me I just don't know what to do - I'm in my 17th week of waiting for my paperwork to be processed - 5 weeks ago cccs told me it would be ready in 3.5 weeks, then 2 weeks ago said a counsellor would contact me within a week. I have not heard anything since, I have emailed them 3 times but had no response and tried ringing but I just can't get through.
I'm starting to feel quite desperate, my creditors are harrassing me more than ever. I don't know what I'm asking to be honest, just don't know what to do apart from keep ringing! Is there any other intermediary I could maybe apply with who would be faster???

I have just managed to get through to them - another 3-4 weeks!!!! Has anyone been through a quicker intermediary? Please advise!

cd36uk

Payplan were useless, they said I have £300 spare income a month? erm how?! CCCS have also proved useless, they say I am minus £34 (going out more than coming in) and this is all based on the same figures which is just crazy. I need a different intermediary to try. Based on my calculations I am eligible to get a DRO and yet these two intermediaries both say opposite! Argh! I don't know where else to try.

fermi

Smart_Mart wrote: »

Earlier on the thread, someone suggested Baines & Ernst as an intermediary and posted a telephone number for them but after I left my number with them, they haven't called back at all.:(

You could try hunting back a few pages or visit their website but I reckon all intermediaries are snowed under, it seems.

Hi Smart Mart.

Any posts/issues to do with B&E are now only to be dealt with on this thread:

https://forums.moneysavingexpert.com/discussion/2292017

So I have moved your post & replies there.

fermi

Nickpearson wrote: »

WARNING: TAYLOR CAVENDISH.

Hi all

We have see 3-4 clients who have approached the above firm, based in Chesterfield, for a DRO. In return for assisting the client with a Debt Relief Order application we have seen documentary evidence that they are charging a substancial fee for the DRO advice eg fee's of £390 to £520. The Insolvency Service have confirmed that they do not have accredited intermediaries so can't provide a DRO direct and as people will be aware the legislation has been framed to try to prevent firms charging for DRO advice. The IS DRO Unit has passed this for investigation to the IS company investigation branch

Cheers

Thanks for that.

cd36uk

I am trying to find out what is classed as assets for the purpose of a DRO;
my daughters home access (government provided) computer?
My son's xbox 360 bought for him by his grandparents?
My 7 year old washing machine on it's last legs?
Does anyone who has been through a DRO know about this kind of thing?
I have read pages and pages on the net about DRO but it is all the same information parrot fashion.

fermi

cd36uk wrote: »

I am trying to find out what is classed as assets for the purpose of a DRO;
my daughters home access (government provided) computer?
My son's xbox 360 bought for him by his grandparents?
My 7 year old washing machine on it's last legs?

None of those count as an 'asset' for the DRO.

CCCS_Sue

cd36uk wrote: »

Situation is I have approximately 4k of debts via credit cards, catalogues, store cards and door step loans.
Until around last september or so I managed to make the minimum payments relatively easily (not ideal but it kept the nasties from my door) However, when my ex stopped paying maintenance and my household income dropped by over £200 a month, I had to use my income to support the kids and this meant less left over in the pot for debts. Despite selling my car to help reduce outgoings, it is still a real struggle.
I am frantically job hunting, but currently on benefits living hand to mouth and drowning in the debts, unable to pay the minimum payments without going without necessities.
I am looking into my options, a debt management plan has been suggested to me by CCCS but I wonder if a DRO would be better for me.
Having done a statement of affairs, I have worked out that my spare income is just £44.04 per month. CCCS did not suggest a DRO however.
I note that assests must be less than £300, would that include my children's toys (ie xbox 360 or wii) and other things bought as gifts by family? I am so worried and just hope that I can get a DRO, and currently waiting for a call back from payplan as I type. Has anyone got any experience of them?

Hi 3d36uk

I do not know know the full details of your appointment with your CCCS counsellor but I just wanted to flag up a couple of things as to why a DRO may not be suitable for you at the moment.
You say that you have worked out you have £44 surplus.
You need to be aware that if you are job hunting, then there is the possibility that your income may increase within the next twelve months.
If this were to then take your surplus income over £50 month then your DRO could be revoked, which would mean that you would lose your £90 fee and be back where you started.
This would also be the case if you were paying off any arrears on priorities and money freed up after paying them would take you over the £50.

With regard to assets, these would include things like savings, shares, cars, caravans, antiques, and collectables.
Any pension pot worth over £300 would also prevent you from doing a DRO.
Again, I do not have any details regarding your appointment, but the above may give you more information.
Please feel free to contact us at CCCS if require any further help.

Regards
Sue

cd36uk

fermi wrote: »

None of those count as an 'asset' for the DRO.

Thank you for your input and clearing that one up. I just can't seem to think straight at the moment with all the stress and worry of debt. I can't remember the last time I had a good nights sleep!

cd36uk

CCCS_Sue wrote: »

Hi 3d36uk

I do not know know the full details of your appointment with your CCCS counsellor but I just wanted to flag up a couple of things as to why a DRO may not be suitable for you at the moment.
You say that you have worked out you have £44 surplus.
You need to be aware that if you are job hunting, then there is the possibility that your income may increase within the next twelve months.
If this were to then take your surplus income over £50 month then your DRO could be revoked, which would mean that you would lose your £90 fee and be back where you started.
This would also be the case if you were paying off any arrears on priorities and money freed up after paying them would take you over the £50.

With regard to assets, these would include things like savings, shares, cars, caravans, antiques, and collectables.
Any pension pot worth over £300 would also prevent you from doing a DRO.
Again, I do not have any details regarding your appointment, but the above may give you more information.
Please feel free to contact us at CCCS if require any further help.

Regards
Sue

Having actually gone through the figures again my surplus is actually less.
Job hunting has been going on for over 2 years and given the current climate, this isn't going to change over night.
I do not have a pension, car, savings, caravan. I feel like an antique myself but other than that I don't have anything like that.
A debt management plan is not do'able, and the DRO was my last option.
National debtline are helping me through it.