Debt Relief Orders (DRO) - Information & help thread

gplans

I've had my first meeting with a debt counselling agency, Christians Against Poverty (CAP), and although they will try negotiate with my creditors regarding a repayment plan, I don't think I have enough money to make substantial payments each month and it will take me YEARS to finally pay it all off (it's about £5,700). So I'm strongly considering applying for a DRO. My debt is due to not having been able to work for ill health reasons and having increased expenses as a result, as well as a greatly reduced income.

I am hoping that I will be well enough again to start a degree next year September, but I will have no base of finances to do it. So until recently hearing about a DRO, I was hoping to fund my degree with student loans/scholarships and part-time work.
1) Does "Student Finance" (the organisation that organises funding) operate like all other lenders by checking your Credit Report/Score before deciding on giving you a loan? I.e. will my DRO be a deterrant or an actual obstacle in me finding funding for a degree?

2) When the moratorium period is over (12 months) does the fact that I've had a DRO remain on my Credit Report for 6 years, even though it will show my debts (hopefully) being cleared?

3) Do the Restrictions only apply during the 12-month moratorium period, and stop after it ends?

4) Does the public only have access to view my DRO on the Insolvency Register for the 12-month moratorium period, and not after it ends?

Thanks for your help with this! I'm desperate to move forward and get unstuck from this period in my life.

fatbelly

On Monday the 26th July 2010 a judge in the Administrative Court ruled on Judicial Review that the Secretary of State does not have the right to recover overpayments of Social Security benefits and Social Fund loans by making deductions from an ongoing award of benefit when the debtor is subject to a Debt Relief Order (DRO).

The DWP are reviewing the implications of this decision and of course do have the right to appeal. However, the DWP have advised their staff that they must cease making deductions on cases where the overpayment was included in the DRO.

Good news!

cd36uk

fatbelly wrote: »

On Monday the 26th July 2010 a judge in the Administrative Court ruled on Judicial Review that the Secretary of State does not have the right to recover overpayments of Social Security benefits and Social Fund loans by making deductions from an ongoing award of benefit when the debtor is subject to a Debt Relief Order (DRO).

The DWP are reviewing the implications of this decision and of course do have the right to appeal. However, the DWP have advised their staff that they must cease making deductions on cases where the overpayment was included in the DRO.

Good news!

Forgive my blonde moment, but I assume the deductions will continue for normal social fund loans granted before DRO (those that are not related to over payments)

PandaPaws_3

Hello all,

I am considering a DRO (still!) and have a question - I'd be grateful for advice please. I am very close to the limit for a DRO (currently £14850). At what point would I have to stop making any payments to my credit cards? If I can make payments to cover the (extortionate) interest, then I'll be able to stay under the £15k limit, but if I am not allowed to do so, then obviously I am going to go over the £15k mark pretty quickly. Given that I have read on this board of long waits, I will most likely no longer be eligible for a DRO by the time it would be granted (if that makes sense!).

Thank you to all posters for their questions and advice, this board is so useful.

penguinSmall

What is the lowest you can owe before being able to get a DRO? I have been somewhat dropped in it by my own honesty which resulted in the DWP refusing to give me a crisis loan because I had a credit card with an available balance on it.

Using said available balance for rent, bills food etc has left me with more to pay out monthly that I can cope with but it all only amounts to around £2500.

jonnyjackov

PandaPaws wrote: »

Hello all,

I am considering a DRO (still!) and have a question - I'd be grateful for advice please. I am very close to the limit for a DRO (currently £14850). At what point would I have to stop making any payments to my credit cards? If I can make payments to cover the (extortionate) interest, then I'll be able to stay under the £15k limit, but if I am not allowed to do so, then obviously I am going to go over the £15k mark pretty quickly. Given that I have read on this board of long waits, I will most likely no longer be eligible for a DRO by the time it would be granted (if that makes sense!).

Thank you to all posters for their questions and advice, this board is so useful.

I was in a similar situation to you, debts of about £14600 when I applied for my DRO. I made payments up until about 10 days before my dro was granted (even though my application had started). You are right, the costs do add up quickly when you stop paying, ie overlimit fees, missed payment fees and interest. My advice would be to keep paying (if you can) until just before your dro is submitted. My mum helped me out with a bit of money to keep paying, as obviously they might say if you are still paying your debts then you must have more than £50 per month left after essential bills. I hope that helps, and makes sense. If you need to know any more, let me know.

Lee_m

PandaPaws wrote: »

Hello all,

I am considering a DRO (still!) and have a question - I'd be grateful for advice please. I am very close to the limit for a DRO (currently £14850). At what point would I have to stop making any payments to my credit cards? If I can make payments to cover the (extortionate) interest, then I'll be able to stay under the £15k limit, but if I am not allowed to do so, then obviously I am going to go over the £15k mark pretty quickly. Given that I have read on this board of long waits, I will most likely no longer be eligible for a DRO by the time it would be granted (if that makes sense!).

Thank you to all posters for their questions and advice, this board is so useful.

Hi,

Providing you meet the other criteria. You need to try and keep your debts below the £15k until the DRO application is made otherwise it will no longer be an option for you. My opinion would be for you to keep paying them until this happens.

There are a number of good organisations available to help you. I decided to go with the CAB as I felt being able to deal with someone on a on a face-to-face basis may be quicker and it was (15 days). Reading some of the stories of long waits, I think I was extremely lucky and had some very good advice along the way.

Give the CAB a call and see when you can get an appointment with the Debt Advisor - Please do it asap! Have all your figures together and download a free copy of your Experian credit report (30 day trial - don't forget to cancel). This is the advice I received and it speeded up the process immeasurably.

This would be my suggestion, but I'm sure someone will be along soon to give you more accurate advice.

pugsley29

anymore news on the consultation about the pension limit

searched thread and couldn't see any update on this subject but may have missed something

Stardust

Can someone in the 'know' give me their opinion on this.

I live with 2 other adults, one is unable to work and the other has just lost his job (but is looking hard to find another). Im looking at finding more work to fill in the money gap thats been left by the main wage earner not bringing any money in, if my income went up but so did my living costs (more bills, council tax (im now liable for 75% of this :eek:), household expenses, insurances etc) and I could still show I had less than £50 excess would I have to phone someone (OR? CCCS?) and show them my new SOA? I still dont have anything thats worth over £300 or own property or have a pension.

Would it make a different if I went abroad finding work (ie a 6month contract on a boat or rig)

Im nearly 6months into my DRO and everything seems to be falling apart again

elfieb

Stardust wrote: »

Can someone in the 'know' give me their opinion on this.

I live with 2 other adults, one is unable to work and the other has just lost his job (but is looking hard to find another). Im looking at finding more work to fill in the money gap thats been left by the main wage earner not bringing any money in, if my income went up but so did my living costs (more bills, council tax (im now liable for 75% of this :eek:), household expenses, insurances etc) and I could still show I had less than £50 excess would I have to phone someone (OR? CCCS?) and show them my new SOA? I still dont have anything thats worth over £300 or own property or have a pension.

Would it make a different if I went abroad finding work (ie a 6month contract on a boat or rig)

Im nearly 6months into my DRO and everything seems to be falling apart again

You have a legal obligation to inform the OR of any changes in income.
You would be asked to submit an updated SOA to the OR.
(There is a post somewhere on the forum, showing the allowances for a DRO )

Unfortunately the bottom line is that any increase in income that pushes you over the £50 surplus will invalidate your DRO.