Debt Relief Orders (DRO) - Information & help thread

mumof1and1ontheway

Thanks elfie... I won't bother looking into that one. I will manage if I use my £40 extra per month on 2nd hand tems. I got the £500 maternity grant, so I have everything for baby etc. And I am up to date on bills Plus I guess a loan from the job centre would mean more debt which I def do not want.

wobblywizard

Can't believe how quick the DRO process has been for me, one week waiting for credit report, paperwork filled in the next week and checked, it was submitted on Thursday morning and was approved by 4pm on Friday! So far it's been so easy I'm just waiting for something to go wrong!

It's such a difference being able to say no to pushy debt collectors, they call me morning noon and night demanding payments over the phone, I don't even have a debit or credit card!

If you're waiting for a DRO to go through and you keep getting calls tell them you're recieving debt advice from the CAB and until you've heard from them you've been advised not to make any payments. That's kept some of the nuisance calls at bay for past few weeks

cd36uk

missnikkai wrote: »

Can't believe how quick the DRO process has been for me, one week waiting for credit report, paperwork filled in the next week and checked, it was submitted on Thursday morning and was approved by 4pm on Friday! So far it's been so easy I'm just waiting for something to go wrong!

It's such a difference being able to say no to pushy debt collectors, they call me morning noon and night demanding payments over the phone, I don't even have a debit or credit card!

If you're waiting for a DRO to go through and you keep getting calls tell them you're recieving debt advice from the CAB and until you've heard from them you've been advised not to make any payments. That's kept some of the nuisance calls at bay for past few weeks

Who did you go through?, most people are waiting 7/8 weeks or more. I have been told to make payments (whatever I can afford) in the meantime

SimIsOnTheUp

cd36uk wrote: »

Who did you go through?, most people are waiting 7/8 weeks or more. I have been told to make payments (whatever I can afford) in the meantime

Hi,

They probably went through the CAB, as when I went through my DRO forms at the CAB last week, they told me that it'd take about a week to be processed.

HTH

Sim.

wobblywizard

Via CAB, I don't see the point in making payments if you're getting a DRO, so long as you can hold them off til it's approved you're fine. Seems a bit daft making payments on a balance that's going to be frozen soon, and possibly written off depending on whether your circumstances change. It's just money out of your pocket for nothing, best saved to go towards the £90 admin fee.


Just to add: My advisor told me the DRO system would be down for 2 weeks in July so I should submit it asap, not sure if this is true or whether that would account for any hold ups with anyone else?

stephy110288

does anyone know anything about changing the pension rule? I thought it was meant to be announced late june but not heard anything

fatbelly

missnikkai wrote: »

Via CAB, I don't see the point in making payments if you're getting a DRO, so long as you can hold them off til it's approved you're fine. Seems a bit daft making payments on a balance that's going to be frozen soon, and possibly written off depending on whether your circumstances change. It's just money out of your pocket for nothing, best saved to go towards the £90 admin fee.


Just to add: My advisor told me the DRO system would be down for 2 weeks in July so I should submit it asap, not sure if this is true or whether that would account for any hold ups with anyone else?

I agree with you on the token payments.

There is IT work going on at the Insolvency Service in late July:

Approved Intermediaries will continue to have access to the DRO Website and will therefore be able to complete DRO applications on behalf of clients. However, no Debt Relief Order applications may be submitted between 16 July 2010 and the 26 July 2010*.

cd36uk

missnikkai wrote: »

Via CAB, I don't see the point in making payments if you're getting a DRO, so long as you can hold them off til it's approved you're fine. Seems a bit daft making payments on a balance that's going to be frozen soon, and possibly written off depending on whether your circumstances change. It's just money out of your pocket for nothing, best saved to go towards the £90 admin fee.

Now I am in two minds about what to do.... I am going through National debtline for my DRO, and they have told me on more than one occasion that I should be making token payments in the meantime.
I am so worried that my DRO will be refused anyway, so I guess I am getting some kind of peace of mind that should it actually be refused, at least I have been making some kind of payment albeit minimal.

If there is any CCCS or CAB advisors on here....
What do you advise DRO applicants to do whilst waiting for their application to be processed?

I am currently about 3/4 weeks into my wait, I have around another month or so until my application gets processed and I have been making pro rata payments to my creditors.

cd36uk

Just for reference for those who need it, I asked national debtline what happens about social fund loans...do they get included in the DRO... she told me they do but only after the DRO is finished (a year after it is granted) by which time most social fund loans are already paid off I would imagine. So in summary the DSS continue to make the deductions in your benefit for a year after a DRO is granted. I pointed out that this is crazy as it is one debt being paid when all others are effectively written off with the DRO, she agreed and said they are trying to get it changed.

fatbelly

cd36uk wrote: »

Just for reference for those who need it, I asked national debtline what happens about social fund loans...do they get included in the DRO... she told me they do but only after the DRO is finished (a year after it is granted) by which time most social fund loans are already paid off I would imagine. So in summary the DSS continue to make the deductions in your benefit for a year after a DRO is granted. I pointed out that this is crazy as it is one debt being paid when all others are effectively written off with the DRO, she agreed and said they are trying to get it changed.

They are included at the outset. The problem is that the DWP continue to make deductions from benefits (if the debtor is still on a relevant benefit) during the morotorium period. And, as you say, this means that they are usually paid off in full. Hopefully this will soon change...

You may be aware that Citizens Advice Specialist Support has been working with the Public Law Project and debt advisers for some time, with the aim of judicially reviewing the Department of Work and Pensions' practice of making deductions from benefit (to repay social fund loans and benefit overpayments) following the making of a Debt Relief Order.

The judicial review hearing is due to take place in the High Court on 23rd July 2010.