Debt Relief Orders (DRO) - Information & help thread

Widelats

Can the debts include any Social Security loans i have had too? I am unemployed, meet all the requirements are if i could get these people off me for a year or forever i would maybe be a lot better off.

Thanks.

CCCS_Matthew

Widelats wrote: »

Can the debts include any Social Security loans i have had too? I am unemployed, meet all the requirements are if i could get these people off me for a year or forever i would maybe be a lot better off.

Thanks.

Hi Widelats,

Social Fund Loans/Crisis Loans do qualify as a debt that could be included within a DRO.

Hope this helps,
CCCS

Widelats

CCCS_Matthew wrote: »

Hi Widelats,

Social Fund Loans/Crisis Loans do qualify as a debt that could be included within a DRO.

Hope this helps,
CCCS

It helped a lot till i found out they cost £90 whether i get it or not - this i can't do. Thanks anyways :beer:

NeedToWorry?

blind-as-a-bat wrote: »

How the hell is jo public going to know if they qualify without taking up what little time CAb etc has

These trigger limits - I spoke to CCCS, and they mentioned a couple of figures to me that I had apparently exceeded when filling in their online form... Or are the trigger limits for a DRO different?

NeedToWorry?

Thanks Blind-as-a-bat... If the CAB/CCCS are filling in the forms and advising, I guess the limits would become apparent pretty soon! And no probs taking it as a negative comment. I'm completely new to all this, and ANY advice is always going to welcomed...

Debt_Tired

I’m delighted that the government has decided to introduce DROs.

I’m long-term unemployed with no qualifications or recent work history. Originally I was ashamed at owing so much to so many different entities. One minute you’re working and then next you’re not. It was a nightmare that happened in 2002. At first I panicked with every red letter that hit the mat. Then I was taught that they can’t take what you don’t have. But the problem and heartache remain with me and I can no longer cope. I owe around £12K.

I understand that I owe people money, but what I cannot understand is how a creditor (someone I owe money to) can effectively write off a debt, then sell it to a debt collector for a fraction of its original value, only for them to insist that I pay in full. I have also incurred various charges and PPI fees (now deemed dodgy or illegal).

The reason – the main reason – why I have decided to take the DRO route is that some debt collectors are beyond the beyond. I owe one debt collector around £500. They probably bought that debt for around £50 from an original creditor. I am paying £1 per month, which goes out of my bank through a standing order (or direct debit – I forget which). Thing is, I still get snotty letters from them saying I haven’t kept to the agreement and that they will take court-proceedings against me. I have written to them stating that the money is going out of my account and that the sum owed is being reduced by £1 per month. But they want proof that this is happening. Every month they send me a letter with an amount that is going down by £1 every month and they want proof that I am paying off this debt. So, Foxtrot’em and all my creditors. It’s about time I look after No.1.

That said, and maybe I’m being paranoid, but I can see DROs being walked-over by various debt collectors. Not sure how it works from their perspective, but if they have the right to challenge the paperwork, what they might insist on is valuating a person’s assets themselves. Imagine being visited by a representative from a debt collector. I would imagine that most people have non-essential household items worth more than £300. In my case, I have a battered old laptop (missing keys and cracked case), a second-hand (hand-me-down) mobile phone, DVD player (second-hand), Freeview decoder (£15 from Tesco), alarm clock (20 years old), snorkelling gear (including wetsuit), digital stills camera, and that’s without really thinking about things. All that added up is worth more than £300.

Another trick that creditors might use is to impose additional charges to increase my debt beyond the £15k limit. I owe around £12k. It wouldn’t take much for one or two debt collectors to add on various fees.

I really do think that a lot of people are going to fall down the gap between DROs and full bankruptcy.

I have various issues that make life unbearable at present and I see no sign of things getting better. All I ask is a break from it all. Recent events relating to the banking industry and in particular the debt-industry has made me realise that things are not going to get better for me. It’s April 2nd. I wouldn’t be surprised if the government decided to postponed DROs. That said with such a low asset threshold of £300 maybe they wont have to?

Can someone reassure me regarding the asset threshold of £300? I don’t own my own home nor a car.

GonzoAston

Widelats wrote: »

It helped a lot till i found out they cost £90 whether i get it or not - this i can't do. Thanks anyways :beer:

Does that mean that its not an automatic thing then? I meet all the requirements, but as I read your post, I may not get accepted but still have to pay admin charges?

Widelats

GonzoAston wrote: »

Does that mean that its not an automatic thing then? I meet all the requirements, but as I read your post, I may not get accepted but still have to pay admin charges?

You got to pay £90 up front, in full, then they decide if you get it or not, as i understand it. :huh:

CCCS_Matthew

Widelats wrote: »

It helped a lot till i found out they cost £90 whether i get it or not - this i can't do. Thanks anyways :beer:

The fee is £90 for a DRO. However you can arrange to pay the £90 in installments for a period of up to 6 months. If this was something you wanted to consider, and a DRO was suitable, the paperwork would be filled out for the application as soon as it's offered. Once you've paid the full £90 the application can then be submitted to the Official Reciever. The normal procedure in this case would be to request the creditors to consider freezing interest and charges as well as taking further action against you !!! you intend to apply for a DRO.

Regards,
Matthew.

CCCS_Matthew

GonzoAston wrote: »

Does that mean that its not an automatic thing then? I meet all the requirements, but as I read your post, I may not get accepted but still have to pay admin charges?

The qualifying criteria are very rigid. If you fit the criteria there should be no reason why a DRO would be rejected. It's similar to how the process works with bankruptcy. If you are insolvent and fit the criteria, a judge won't turn around and tell you that you're not going bankrupt!

Matthew.