Debt Relief Orders (DRO) - Information & help thread

SimIsOnTheUp

PS - The £225 Severn Trent Water bill pending CCJ, INCLUDES Solicitors Costs + Court Fee.

SimIsOnTheUp

PPS - I did want to agree to 'Direct Payments' to the Utility firms, and pay them directly, out of my ESA.

However, if I agree to them all - ie - NPower Electric = £15.30 (per week), Council Tax = £3.25 (per wk), DWP Social Fund = £3.50 per wk (already agreed to this), Housing Benefit Overpayment = £5.00 per wk (already paying this), together with TV License (will probably be at least £5.00 per week) and this years Water bill (probably another £5 a week), then -

That will leave me with £27.25 per week, for food / phone / anything else - hardly sustainable!

How depressing :-/

windsorblue

hi all just to let you know as of yesterday my DRO finished hooooray debt free im so happy i went through with it only one tried it on [barclays] saying they would take action eg court that was 6 months on dro told them to get in touch with insolvency dept not had a peep out of the others so thank you to this board for help and information i also kept my currant account which is great

fatbelly

SimIsOnTheUp wrote: »

'Fatbelly' - Do you think that the OR would contact A&L, and that account would be closed, if I go through with the DRO?

Worst case scenario - if it is, I do have a 'basic' Co-Op 'Cashminder' bank account, as a back up.

Would I be allowed to include the TV License arrears? (I can't find anything definitive about this online!)

A&L account - if it's overdrawn, it's a debt. You include it. Account closed.

If it's in credit, it's not a debt, doesn't get listed and stays open.

TV Licence arrears are in this newsletter (not a qualifying debt - think I mentioned this earlier):

http://www.i-m-a.org.uk/pdfs/dro-newsletter-12-2009.pdf

SimIsOnTheUp

Thanks very much for the info!

Re - A&L account, it is in credit. Not overdrawn.

I was worried, as I was under the impression that the OR would write to my banks - A&L and Co-op

So, won't the OR want to know about both bank accounts anyway, even though they are not overdrawn?

I'd be very happy, if I was able to keep both accounts open.

Re TV Licence - You did indeed inform me previously, sorry. Thank You for the link - this is very helpful

My only remaining concern, before I go ahead with my DRO (probably next week) - is a debt of £500 I owe The Money Shop.

The Money Shop are due to present the cheques (PayDay Loan) next week to my A&L Bank.

As I applied for this loan fraudulently (told them I was working, when I wasn't - I've not been well with depression, anxiety and alcohol addcition) 3 weeks ago, I am in two minds as to what to do.

I have two options -

1 / My Girlfriend has offered to pay The Money Shop off - She would go into the branch and pay them in cash.

As it would be a 'third party' who would be paying them back, I've been told that the OR would not then see this as me showing 'preferential treatment to one creditor, over another'. Is this correct?

The last thing I want, is for my Girlfriend to pay the Money Shop back, and for my subsequent DRO to then be revoked by the OR!

The CAB advisor I saw last week, (who completed the DRO application forms with me - these are due to reach me tomorrow) told me, that even though it would be my Girlfriend who will be paying the Money Shop, I should not go ahead with this, as the OR may still see it as 'preferential treatment'. What would you advise?

2 / If my Girlfriend does not pay the Money Shop back, apparently the A&L will honour the cheques, and the £500 debt will then be transferred to the A&L.

Obviously, my bank account will then be £500 O/D + Charges - This debt would then be listed on the DRO form, but I'd rather avoid this, as I don't want any possibility of being done for fraud arising.

The bank will no doubt want to know, why I'd written £500 worth of cheques, when I did not have the funds to cover them (A&L will be able to see I've been on ESA since last November)

3/ If the cheques are not honoured by the A&L, the £500 debt stays with the Money Shop, and they then add their charges.

Again, I'd like to avoid this, as the Money Shop could then see that something is up. I'd obviously rather they did not find out about my dishonest loan application.

My ultimate worry is being convicted for fraud / the OR revoking the DRO - due to the fraud aspect (I've already told the CAB about this) and the fact that I borrowed the £500, 5 / 6 weeks before submitting the DRO.

If my Girlfriend pays off the Money Shop debt, can I just ask the CAB to remove the debt from my DRO list (as I'll owe them nothing), and then the OR is none the wiser?

Or will the CAB have to tell the OR - thus, the OR then revokes my DRO?

Such stress.

I can not wait to get this over and done with :-/

Thanks,

Sim.

SimIsOnTheUp

PS -

I just called The Insolvency Helpline.

Very helpful!

They confirmed what I needed to know.

Apparently, as long as my Girlfriend is the one who pays off the Money Shop debt, then as its *her* who is repaying them, then I haven't shown 'preferential treatment' of a creditor.

My DRO would not be affected.

Just what I needed to hear!

mumof1and1ontheway

I am finally getting closer to my DRO going through... CAB are only waiting for ONE more creditor to contact them.. so should be another month max
My question is... once its all gone through my gas and electric supplier will enforce coming and installing prepayment meters... but... I am due to deliver my baby in 5 weeks... and was really hoping it would all be done and dusted before then.
Will I get given a choice on which day and time they come to install? How long will it take roughly do you think from the day my DRO is accepted?
Also.. the income and expenditure that CAB will be sending is for me and my son.. obv once baby is born my child benefit and tax credits will change.. will CAB help me with a new income and expenditure and declare it for me? I am a single mum who is forgetful at the best of the times, I am so worried that I will mess it up due to struggling and missing something out.

mumof1and1ontheway

Also may I ask.. because my DRO will be going through in the next month.. I am presuming I am unable to apply for a budgeting loan with the job centre? This would be used for my sons 2nd birthday and for needed items such as clothing etc. And I read they can pay up to 1k I would only need £100 max just to help me out... but obv if it would cause problems I will plod along and find a way than get myself into more trouble.

elfieb

mumof1and1ontheway wrote: »

Also.. the income and expenditure that CAB will be sending is for me and my son.. obv once baby is born my child benefit and tax credits will change.. will CAB help me with a new income and expenditure and declare it for me? QUOTE]

Im pretty sure CAB will assist when you need to complete a new SOA, however Im not so sure they will declare it for you. I expect you will have to inform the Insolvency Service yourself, as after the intermediary completes the DRO application, that is pretty much their work done and dusted.
I wouldnt worry too much though, CAB will be able to work through the SOA with you, and then all you will need to do is post to the IS.

elfieb

mumof1and1ontheway wrote: »

Also may I ask.. because my DRO will be going through in the next month.. I am presuming I am unable to apply for a budgeting loan with the job centre? This would be used for my sons 2nd birthday and for needed items such as clothing etc. And I read they can pay up to 1k I would only need £100 max just to help me out... but obv if it would cause problems I will plod along and find a way than get myself into more trouble.

Not so sure on this one, I suspect the loan would tip you over the £50 surplus unless you could do some serious wizardry on your SOA :rotfl:
Also bear in mind that you would have to inform the job centre of you DRO if you intended to recieve more that £500.