Debt Relief Orders (DRO) - Information & help thread

CCCS_Matthew

Debt_Tired wrote: »

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.

As far as assets are concerned the Insolvency Service take into consideration items that fall under the following criteria:

• Savings
• Shares
• Cars
• Caravans
• Antiques
• Collectables

Unless your camera is a flashy top of the range model I don't think you need to be too concerned. Most people will have £300 worth of possessions, but it's items of large value or possessions you could sell and get substantial money for that exclude you from getting a DRO. For example if you have a swanky plasma TV in the corner of the lounge, or an antique painting on the wall!

If you apply for a DRO when you have 12k of debt, and then you find creditors have put on enough charges to bring the debts over the threshold the OR would have the power to still allow the DRO to go ahead if they feel the creditors have done it soley to prevent you from having a DRO. However I think it's highly unlikely your creditors would increase your debts by such a huge amount in such a small period of time.

As for your concern that DRO's being posponed, I can assure that they will definitely be going ahead from Monday!

Hope this helps,
Matthew.

Godiva500

MOVED POST TO CSSS THREAD


I intend to apply for DRO end of next week when my new bank acct is up and running. I meet all of the criteria that has been specified on here, so wondered if you could take a look and advise me please?

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household......... 0
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 1052
Partners monthly income after tax....... 100
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1152
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 322
Management charge (leasehold property).. 0
Council tax............................. 95
Electricity............................. 43
Gas..................................... 43
Oil..................................... 0
Water rates............................. 29
Telephone (land line)................... 30
Mobile phone............................ 0
TV Licence.............................. 12
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 350 -Special diet and 2 cats
Clothing................................ 25
Petrol/diesel........................... 50
Road tax................................ 17
Car Insurance........................... 25
Car maintenance (including MOT)......... 30
Car parking............................. 10
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 30 - over 60 so opticians and dentists bills more regular.
Pet insurance/vet bills................. 25 - 2 cats
Buildings insurance..................... 0
Contents insurance...................... 15
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1151

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 510
Other assets............................ 0
Total Assets............................ 510

No Secured nor Hire Purchase Debts
Unsecured Debts
Description....................Debt......Monthly...APR
RBS CC.........................765.......17........0
HSBC CC........................4806......121.......0
NAT WEST CC....................2400......43........0
HSBC OD........................2000......0.........0
IF Loan........................3314......245.6.....0
Total unsecured debts..........13285.....426.6.....-

Monthly Budget Summary
Total monthly income.................... 1,152
Expenses (including HP & secured debts). 1,151
Available for debt repayments........... 1
Monthly UNsecured debt repayments....... 426.6
Amount short for making debt repayments. -425.6
Personal Balance Sheet Summary
Total assets (things you own)........... 510
Total HP & Secured debt................. -0
Total Unsecured debt.................... -13,285
Net Assets.............................. -12,775
Created using the SOA calculator at www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission, using IE browser.

Godiva500

SOA for debt relief order
I intend to apply for DRO end of next week when my new bank acct is up and running. I meet all of the criteria that has been specified on here, so wondered if you could take a look and advise me please?

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household......... 0
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 1052
Partners monthly income after tax....... 100
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1152
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 322
Management charge (leasehold property).. 0
Council tax............................. 95
Electricity............................. 43
Gas..................................... 43
Oil..................................... 0
Water rates............................. 29
Telephone (land line)................... 30
Mobile phone............................ 0
TV Licence.............................. 12
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 350 -Special diet and 2 cats
Clothing................................ 25
Petrol/diesel........................... 50
Road tax................................ 17
Car Insurance........................... 25
Car maintenance (including MOT)......... 30
Car parking............................. 10
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 30 - over 60 so opticians and dentists bills more regular.
Pet insurance/vet bills................. 25 - 2 cats
Buildings insurance..................... 0
Contents insurance...................... 15
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1151

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 510
Other assets............................ 0
Total Assets............................ 510

No Secured nor Hire Purchase Debts
Unsecured Debts
Description....................Debt......Monthly.. .APR
RBS CC.........................765.......17........0
HSBC CC........................4806......121.......0
NAT WEST CC....................2400......43........0
HSBC OD........................2000......0.........0
IF Loan........................3314......245.6.....0
Total unsecured debts..........13285.....426.6.....-

Monthly Budget Summary
Total monthly income.................... 1,152
Expenses (including HP & secured debts). 1,151
Available for debt repayments........... 1
Monthly UNsecured debt repayments....... 426.6
Amount short for making debt repayments. -425.6
Personal Balance Sheet Summary
Total assets (things you own)........... 510
Total HP & Secured debt................. -0
Total Unsecured debt.................... -13,285
Net Assets.............................. -12,775
Created using the SOA calculator at www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission, using IE browser.

CCCS_Matthew

Godiva500 wrote: »

MOVED POST TO CSSS THREAD


I intend to apply for DRO end of next week when my new bank acct is up and running. I meet all of the criteria that has been specified on here, so wondered if you could take a look and advise me please?

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household......... 0
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 1052
Partners monthly income after tax....... 100
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1152
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 322
Management charge (leasehold property).. 0
Council tax............................. 95
Electricity............................. 43
Gas..................................... 43
Oil..................................... 0
Water rates............................. 29
Telephone (land line)................... 30
Mobile phone............................ 0
TV Licence.............................. 12
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 350 -Special diet and 2 cats
Clothing................................ 25
Petrol/diesel........................... 50
Road tax................................ 17
Car Insurance........................... 25
Car maintenance (including MOT)......... 30
Car parking............................. 10
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 30 - over 60 so opticians and dentists bills more regular.
Pet insurance/vet bills................. 25 - 2 cats
Buildings insurance..................... 0
Contents insurance...................... 15
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1151

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 510
Other assets............................ 0
Total Assets............................ 510

No Secured nor Hire Purchase Debts
Unsecured Debts
Description....................Debt......Monthly...APR
RBS CC.........................765.......17........0
HSBC CC........................4806......121.......0
NAT WEST CC....................2400......43........0
HSBC OD........................2000......0.........0
IF Loan........................3314......245.6.....0
Total unsecured debts..........13285.....426.6.....-

Monthly Budget Summary
Total monthly income.................... 1,152
Expenses (including HP & secured debts). 1,151
Available for debt repayments........... 1
Monthly UNsecured debt repayments....... 426.6
Amount short for making debt repayments. -425.6
Personal Balance Sheet Summary
Total assets (things you own)........... 510
Total HP & Secured debt................. -0
Total Unsecured debt.................... -13,285
Net Assets.............................. -12,775
Created using the SOA calculator at www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission, using IE browser.

Unfortuately we can't offer recommendations via this forum, as you would need to have an appointment with a counsellor for us to offer advice. On the face of the information you've provided it does look like you meet the criteria but it would be worth speaking to a counsellor to discuss things further.

Regards,
Matthew

Godiva500

apologies - bump

debt_doctor

Hi,

That seems reasonable spending overall;)

You can keep your car if it is worth less than £1k. It will be valued by parkers guide, and on whether YOU feel it is in good or fair condition:rolleyes:

Get in quick, and if your intermediary feels the DRO is right for you, pay and process straight away, interest could soon take you over the limit. If your a penny over £15k when your fee is paid you will lose your £90.

DD

Godiva500

Thanks - just waiting for Co-op to confirm account

Dizzymum_3

HI Debt Doctor

Please could you have a quick look at my SOA for a DRO, any advice very welcome, Thank you


Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2 Me & son who is 21
Number of children in household......... 2 3yrs & 13 yrs
Number of cars owned.................... 0

Monthly Income Details
Monthly income after tax................ 0
Partners monthly income after tax....... 0
Benefits................................ 817.67 income support, child tax, child ben.
Other income............................ 173.34 Sons contribution
Total monthly income.................... 991.01

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 75
Management charge (leasehold property).. 0
Council tax............................. 12
Electricity............................. 50
Gas..................................... 50
Oil..................................... 0
Water rates............................. 56.55
Telephone (land line)................... 40
Mobile phone............................ 0
TV Licence.............................. 12.5
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 530
Clothing................................ 65
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 40
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 12
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 943.05


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 0

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
m..............................790.......85........0
f..............................2028......112.......0
cap............................93........5.........0
hali...........................98........5.........0
dwp............................800.......88........0
wea............................869.......13........0
sou............................512.......15........0
mack...........................425.......55........0
n..............................840.......75........0
Total unsecured debts..........6455......453.......-


Monthly Budget Summary
Total monthly income.................... 991.01
Expenses (including HP & secured debts). 943.05
Available for debt repayments........... 47.96
Monthly UNsecured debt repayments....... 453
Amount short for making debt repayments. -405.04

Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -0
Total Unsecured debt.................... -6,455
Net Assets.............................. -6,455

Created using the SOA calculator at https://www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission, using IE browser.

debt_doctor

Have you forgotten to include your child benefit ?

DD

Godiva500

Hi
I intend to apply for DRO this coming week. The problem is that 2 large items have recently packed up on me. My cooker is very old(inherited and about 10 years old), and has just gone bang, and i desperately need to replace it, and my settee ( about 15 years old) has a cracked frame and is falling apart. How would it be viewed if i bought these 2 items now on a CC, before the DRO? Would the CC people contest this? I do not wish to be thought of as dishonest and playing the system, but we really do need them now. If i leave it, it will be at least another year or more before we can afford new ones again. We cannot manage for that long without them.
Not sure what to do, so advice please.