Debt Relief Orders (DRO) - Information & help thread

cd36uk

CCCS_Sarah wrote: »

Just a quick query with regards to the above quote. From the point of submitting a DRO application to the point of processing (currently taking many weeks) the debt will increase as fee's/interest/missed payments occur on the debts, this is hardly the debtor's fault and should not result in rejection of the application.
I am now worried that my application is going to go this way. I correctly entered my debt amounts as they stood on the day of the dated form, I cannot possibly foresee how much charges/ interest that my creditors will choose to add to it between now and when my application is processed. Of course balances can change from one day to the next, so we do address this issue before submitting any application.

It appears that the 'rules' for a DRO are much more difficult than that of bankruptcy, and had I been able to afford the fees required for bankruptcy, I would of gone for that quicker option. Are the peope on low incomes with only DRO as their option being penalised for doing what is effectively a bankruptcy on the cheap? It certainly feels that way to me. The legislation does differ, we can only follow the guidelines as set out for Debt Relief Orders. The Charity has been campaigning for improvement. This is something you could also bring up with your local MP.

I have also not been advised as to how much if anything I should be paying my creditors in the long period until my application is processed. With bankruptcy you are told to stop all payments immediately. I have asked the question a few times and each time the answer has been very sketchy 'pay what you can afford' I was told once. Then the conditions of the DRO say not to favour one creditor over another, so that leaves the question, how much to pay each creditor? A token amount each? The same amount, different amounts? -

You would need to pay your creditors a token payment, this is as much as you can afford to pay based on your budget. So if you have very little surplus then you would pay £1 per creditor until your DRO has been accepted. If you have a higher amount then you could offer pro rata payments.

The calculation to work out pro rata amounts is as follows…

Individual debt x Surplus / total owed = Individual offers

The best way of making the payments would be through a standing order, payment book or postal order, rather than direct debit.

Thank you, for some strange reason I only got the email notification of your response today and didn't realise you had responded.

I have now written to all my creditors again (previous letters were to ask for interest/charges to be frozen which they have all chosen not to do, and are adding amounts left, right and centre) I was paying a token amount to all of £1.00, but have now done a new personal budget plan and know exactly how much is left and have sent a new letter to creditors with the pro-rata amounts detailed and asked for standing order forms, in the meantime I am making the pro rata payments via their online payment services/ or over the telephone.

I have received a confirmation letter for my DRO application from national debtline, but I am really stressing that I am going to be refused one, and end up owing even more money with all the interest and fees being added (studio catalogue have added £20 fee for one month alone, after paying them the token £1, how do they justify that? :eek:) So with those kind of fees being added plus interest on my debts, they will be huge by the time the DRO application gets looked at. I wish I could afford bankruptcy.

It could be a co-incidence but I have suddenly gotten a lot of grey hairs recently!!

Bugalugs

I started paying back debts in late 2004 through Payplan. At that point my wages meant I could pay £180 per month however a combination of redundancy and lower wages mean that my current payment is £50.10 per month. I'm already struggling to make ends meet, worrying about the debt and then when things come up unexpectedly (the current example is that the washing machine in my rented property broke down and I just couldn't afford to go to the laundrette) it makes the situation even more stressful. Although I started with good intentions that I should pay it back now my reduced payments mean that I'm looking at an end repayment date in 2026! With that in mind I was really interested to find out about DROs this morning on the board as my current debt is approx £10K.
Just some quick questions if I could please;
1. I've checked Experian report and not everything on that I'm paying back through Payplan is on there - will this be a problem? (had a look through the board and other sources and it seems like a lot of importance is placed on the Experian report)
2. What happens about my Student Loan - I understand that it can't be included (I think) but what happens with repayments? (I graduated in 1999 so have one of the 'old' style ones)
3. What if I do any overtime or get a better job/promotion during the 12 month period
4. Although it would stay on my record for 6 years after this would it be possible for me to get something 'grown up' like a mortgage?

My debts are mainly from when I was a student apart from an ill-judged loan from Welcome Finance aftewards which I meant to use to pay off the student overdraft but frittered away so ended up with both of the debts - yes, stupid I know. I'm much better with money now that I don't have any!

Any answers or personal experiences that are similar would be greatly appreciated - thanks in advance.

fatbelly

Answers as follows:

Bugalugs wrote: »

1. I've checked Experian report and not everything on that I'm paying back through Payplan is on there - will this be a problem? No
2. What happens about my Student Loan - I understand that it can't be included (I think) but what happens with repayments? (I graduated in 1999 so have one of the 'old' style ones) Not included so continue with existing payments (if any)
3. What if I do any overtime or get a better job/promotion during the 12 month period If your income/expenditure changes so that your surplus exceeds £50 per month, then you are required to inform the DRO unit
4. Although it would stay on my record for 6 years after this would it be possible for me to get something 'grown up' like a mortgage? Depends on the lender's criteria

Bugalugs

fatbelly wrote: »

Answers as follows:

Thanks for taking the time to reply. When I read about DROs I thought it was the answer to all the stress, I've since found out that as I live in Scotland it isn't an option for me.

I feel so despondent and just can't believe that being so irreponsible when I was younger is causing so much stress, worry and heartache now

Smart_Mart

RobertoMoir wrote: »

Hi Smart Mart - make sure you send the letter to the council (and escalate to the councillor), not the bailiffs. They will just continue to lie to you. Whoever you send the letter to, you do need to be firm without sounding awkward - you want to come across as someone who is trying to sort out a problem that has already happened, not cause a new one, if you see what I mean. Aim for a tone that says you are very well aware of your rights, and that these haven't been respected properly, and you're just letting them know that you are aware.

By all means let them know that you've been taking advice from a former certificated bailiff, if you think that will help.

Sent letter to the council yesterday. Bailiffs were around today and are coming back within 24 hours where they "will be calling back with the police in attendance if necessary" to complete their task.

Orville

Hi.

Can anyone tell me exactly what paperwork you need to provide throughout this process to get a DRO..?. I am going to be in this position soon and would like to know what in advance they ask for.

cd36uk

Orville wrote: »

Hi.

Can anyone tell me exactly what paperwork you need to provide throughout this process to get a DRO..?. I am going to be in this position soon and would like to know what in advance they ask for.

• Most recent bank statement
• Payslip or proof of benefit

Those are the requested documents you have to supply in addition to the forms that are sent to you by them:

Income and expenditure details form (PBS)
List of creditors
Experian application form
Experian consent form
DRO conditions form

Orville

cd36uk wrote: »

• Most recent bank statement
• Payslip or proof of benefit

Those are the requested documents you have to supply in addition to the forms that are sent to you by them:

Income and expenditure details form (PBS)
List of creditors
Experian application form
Experian consent form
DRO conditions form

So that's all, jees i thought i'd have to sift through mountains of paperwork

Someone posted earlier in this thread (or it maybe another i read) that the creditors can refuse a dro, is this true..?

Also i have a very account, some is on buy now pay 2011 and some isn't. Can i include all of it in the DRO..?

cd36uk

Orville wrote: »

So that's all, jees i thought i'd have to sift through mountains of paperwork

Someone posted earlier in this thread (or it maybe another i read) that the creditors can refuse a dro, is this true..?

Also i have a very account, some is on buy now pay 2011 and some isn't. Can i include all of it in the DRO..?

I would imagine that it can be refused yes, but from what I have read, it seems whoever the organisation is who submits it on your behalf to the OR will only do so if there is a good chance of acceptance.

I too have a very account, and I think the whole balance should be put forward (even the BNPL), that is what I have done anyway, it is a total debt to the company.

I am in the long waiting process (around 8 wks currently) to hear if my DRO will be put forward, so I am by no means an expert, just going by my own experiences. I don't mind admitting that I am worried that mine will be rejected, but I know I have done as much as I can. A previous poster said that their figures had been rejected, and was having to re-do them, I am worried that will happen to me. I did the form in such a rush, even so it still took me around 2 hours to do all the paperwork, and now I am questioning my answers! Time will tell I suppose!

cd36uk

Smart_Mart wrote: »

Bad news here. The CCCS rung up earlier and said that my figures didn't add up (even though they went through them all with me on the phone two months ago) and that they're not going to put me forward for a DRO based on those figures. I have to re-do all the figures as my income is short and I have a deficit budget...:mad:

They are sending all my paperwork back as they cannot be confident my DRO will get agreed. She advised me to go bankrupt again (I was made bankrupt in 2005 by the HMRC) but I cannot afford the fees.

I'm not sure whether this might be the time to sort out my figures and go back to them again (which they would be happy to accept me on) or take it on the chin and go elsewhere. I'm busy most of this week but I'll grab an hour with a coffee and sort out where I go from here. The CCCS waiting times are reducing (they've outsourced some of their DRO's to other CCCS offices) but can I hold out for another few weeks?:(

Have you got this sorted? If you are still going for a DRO, will you have to wait another 8 weeks or so (is it classed as a whole new application), or will your new figures mean you are nearly there?
Have you paid your fee yet by the way?
Apologies if you have updated on this and I have missed it.