Debt Relief Orders (DRO) - Information & help thread

Orville

imatt wrote: »

Well, got my DRO approved! Recieved the letter today! "I attach herewith a copy of your approved order which schedules all of the creditors that are subject to this order".

I also got a letter from a creditor named on the DRO saying they want payment. Best to ignore them or phone them up telling them about the DRO?

Well that's a hard one... If it were me, now it's been granted i would tell them. If it wasn't granted i'd keep quiet till it had gone through. The advice from the CAB rep i saw was the same.

Stardust

immoral_angeluk wrote: »

Send them a copy of the DRO then ignore them

This , you might get a few phone calls over the next 14 days or so while the info filters down to the right departments. I just told them that I was under a DRO now and they should direct their calls to the OR.

Orville

I have a question. If you know you are going for a DRO and before it's set in place you go and draw any remaining money in your credit card account out, can the dro be stopped because of this..?

immoral_angeluk

Orville wrote: »

I have a question. If you know you are going for a DRO and before it's set in place you go and draw any remaining money in your credit card account out, can the dro be stopped because of this..?

Possibly yes, as it could be seen that you used a credit facility knowing that you were insolvent. The bank may then appeal the DRO being made, and worst case scenario start a fraud investigation... All speculative of course, but not worth the risk.

Orville

immoral_angeluk wrote: »

Possibly yes, as it could be seen that you used a credit facility knowing that you were insolvent. The bank may then appeal the DRO being made, and worst case scenario start a fraud investigation... All speculative of course, but not worth the risk.

I thought the same but thought i should ask... So what happens when you are in such debt that you are as the saying goes "Robbing peter to pay Paul" taking from one card etc to pay off another..? Surely you would know in advance it would come to a head and there would be no way you could pay it back.

Lee_m

wba31 wrote: »

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.

I totally agree.

wba31 wrote: »

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

I don't quite understand what you mean. The fee for a DRO is £90.00.

fermi

Orville wrote: »

I thought the same but thought i should ask... So what happens when you are in such debt that you are as the saying goes "Robbing peter to pay Paul" taking from one card etc to pay off another..? Surely you would know in advance it would come to a head and there would be no way you could pay it back.

There is a big difference between (a) juggling credit accounts in a last ditch attempt to keep your arse out of the financial fire, and (b) cynically maxing out credit prior to a DRO/bankruptcy.

The first is something that I think many people on these boards have had to do. The 2nd is just taking the 'whatever'.

The first may end up with a slap on the wrist from the OR. The 2nd could result in a DRO restriction order/undertaking, or even revocation of the DRO.

Orville

fermi wrote: »

There is a big difference between (a) juggling credit accounts in a last ditch attempt to keep your arse out of the financial fire, and (b) cynically maxing out credit prior to a DRO/bankruptcy.

The first is something that I think many people on these boards have had to do. The 2nd is just taking the 'whatever'.

The first may end up with a slap on the wrist from the OR. The 2nd could result in a DRO restriction order/undertaking, or even revocation of the DRO.

Thanks for your comments.

I am currently going for a DRO. I have so far had the initial visit with a lady from the cab whom is refering me to one of her collegues.

What i forgot to ask her is one of my cards has unemployment insurance on it which i am claiming. Now i have sent offer letters to all my creditors (yesterday) i did this, do i still claim on the insurance for that one company...? or do i just pay them £1 a month the same as the other creditors...

demonicangel

I am re-looking into a DRO, didnt end up doing it when I researched into it April time.

Had been CAB April to ask about a DRO but they dont do them. They just told me to go to CCCS etc.

I know back then, there was huge waiting lists pretty much everywhere and am wondering if this is still the same?

I want to try and to it asap.

Orville

demonicangel wrote: »

I am re-looking into a DRO, didnt end up doing it when I researched into it April time.

Had been CAB April to ask about a DRO but they dont do them. They just told me to go to CCCS etc.

I know back then, there was huge waiting lists pretty much everywhere and am wondering if this is still the same?

I want to try and to it asap.

I think it roughly takes around 2 months with the CCCS... You can help speed it up like get all your latest statements togther and when they send you a experian credit report sheet fill it out and send it 1st class recorded, i sent mine like that and got it back within a week. As for the rest i don't know as i have decided to go with the CAB as i got on very well with the rep i saw. I think it varies with different CAB offices depending on how busy they are. My advice ring or pop in.