Debt Relief Orders (DRO) - Information & help thread

SimIsOnTheUp

sarah1773 wrote: »

I was approved for a DRO at the end of May this year. However, my car insurance is due for renewal and I am changing insurers. I pay monthly but I am a little worried that this counts as applying for credit. In the DRO it states that you cannot apply for credit for more than £500 and my insurance will not exceed that. But it is still bothering me that I may be rejected or it will somehow show up that I am trying to apply for 'credit'. Also is it a bad idea to go with Co-op Insurance considering one of my debts was with the Co-operative Bank? Will this count as making payments towards a creditor or they may challenge my DRO?? Any help appreciated, thanks

Hiya,

I doubt there'd be a problem. I thought Insurance Companies only did a 'soft search' when they check your credit file - ie - a 'credit inquiry' as opposed to a credit search.

Best err on the side of caution though..

I'd go with a different insurance company, other than the Co-op if you had debts with them.

Also, to be 100% certain, just check with your OR.

Good Luck,

Sim.

PandaPaws_3

I am currently applying for a DRO and one of my debts is with Santander (credit card). I have set up a Cahoot current account to move my banking to because one of my other credit card debts is with the company I currently bank with and I assume they'll want rid of me! Now I realise that Cahoot and Santander are the same people... are they likely to close my Cahoot current account when they realise I've had a DRO?

cd36uk

My intermediary submitted my dro application today, and said I should get an answer 24-48 hrs later. I am absolutely 'bricking it', my heart will be in my mouth when the phone rings tomorrow.
It has been really stressful, and I just hope the dream I had the other night is not what will happen for real. Fingers crossed!

Orville

cd36uk wrote: »

My intermediary submitted my dro application today, and said I should get an answer 24-48 hrs later. I am absolutely 'bricking it', my heart will be in my mouth when the phone rings tomorrow.
It has been really stressful, and I just hope the dream I had the other night is not what will happen for real. Fingers crossed!

Good luck....

wba31

Gavhough wrote: »

Hi guys, I am in approx £9k of debt with credit cards, and cannot afford to pay anything towards them. I am on Long term sick from work recieving SSP at less than £80 per week. This is swallowed up by household bills. I live with my Partner who is paying the mortgage on the place we live, I am not named on the mortgage due to not being accepted for my poor credit score. Would the take her finances into account when i apply for a DRO, and with her paying the mortgage would that class me as a homeowner? Any advice guys?

There is the issue of is your name on the property? if so, regardless of equity or negative equity, the house will be an asset with your name on it. if the house is in your partner's name only, you should ask about "beneficial interest" in the property, which you may have if you have ever contributed to running cost of the property

wba31

Lee_m wrote: »

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.

Key thing with this is how much you pay to each creditor. pay one and not the others and this is preferential treatment. however if payments are made by someone else and not you it is fine. if you're paying one you must pay all.
Other thing to think of is how much in total you'll end up paying, if it's more than £600 with your DRO fee (or £450 if you're eligible for a fee remission) you might end up better off going bankrupt

cd36uk

Orville wrote: »

Good luck....

Thank you Orville.

I am relieved to say my DRO was indeed granted. Phew, that is a weight off my mind

PandaPaws_3

Nice one cd36uk, glad it worked out for you.

Does anyone have any thoughts on my previous post re. whether I should put my money for rent, bills etc. in to my Cahoot current account / do Santander have any power to close or freeze a Cahoot account?

Thanks.

SimIsOnTheUp

Hiya PandaPaws,

Keep it simple.

I wouldn't take the risk.

Just open a new account with a completely unrelated bank, so that all your future income is safe. Be sure to keep your OR informed and I'm sure everything will be fine.

You don't need any possible hassle down the line if you're going for a DRO, so it's a safer bet finding a new bank, so that all your priority bills are paid safely on time.

I have a Co-op Cashminder account, which has been brilliant for the past six years.

It's a basic account (Visa Debit Card / no cheque book / no overdraft / online banking / DD / SO facilities), but their customer service on the phone is the best I've ever experienced.

I think Co-op will even open an account for undischarged Bankrupts, so even though you're going for a DRO, they should still open an account for you.

Try giving the Co-op a call.

Hope this helps,

Good Luck,

Sim.

PS - I wouldn't trust Santander / any related bank of theirs with my money in the future, due to having rather poor customer service with my A&L (now Santander) bank over the phone! Move to the Co-op. You won't regret it

gavinh_2

i am unemployed and was going to apply for a debt relief order after months of struggling and then realising i had to throw my hands in the air and give up.
i spoke to legal aid and they advised me not to start a DRO if i planned to start working again within the next 12 months (which i definitely do). so instead they have asked my creditors to accept £2 a month for a while, which im waiting to see if they will accept. (i guess they have to cos they cant get blood out of a stone).
anyway im just wondering, was this definitely the right advice i was given, NOT to take the DRO?