Debt Relief Orders (DRO) - Information & help thread

fatbelly

Josie64 wrote: »

last year hubby won a tribunal case and we paid off some of the lower debts off ( seemed like a good idea at the time) so after reading info on here we know that would go against hubby but he also has a pension as well so is that treated as an asset, we have a car worth approx £500

Yes as things stand a pension pot is an asset.

So it looks as if you may both be disqualified from a DRO for different reasons.

Maybe your CAB adviser didn't ask about the pension?

Josie64

thanks for info - the CAB adviser wasn't sure about pension pot and is going to get back to us.

Orville

Josie64 wrote: »

thanks for info - the CAB adviser wasn't sure about pension pot and is going to get back to us.

What is a debt relief order

A debt relief order is an order you can apply for if you can't afford to pay off your debts. It's granted by the Insolvency Service and is a cheaper option than going bankrupt.
You must have debts of less than £15,000 and a low income.
A debt relief order usually lasts for a year and during that time, none of the people you owe money to (your creditors) will be able to take action aginst you to get their money back. At the end of the year, you'll be free of all the debts listed in the order.


You can't apply for a debt relief order if you:

• own things of value or have savings of over £300
• own a vehicle worth more than £1,000
• have a private pension fund worth over £300.

http://www.adviceguide.org.uk/index/life/debt/debt_relief_orders.htm

fatbelly

Josie64 wrote: »

thanks for info - the CAB adviser wasn't sure about pension pot and is going to get back to us.

I should add that we are hopeful that the rule will be modified (I'd like to see it removed altogether!) but as yet no date or details.

Orville

fatbelly wrote: »

I should add that we are hopeful that the rule will be modified (I'd like to see it removed altogether!) but as yet no date or details.

Fat what is the rule with regards to over estimating my debts. The cab are putting mine on the system next Thursday, but i don't think i will have the £90 till the end of the month. Can i over estimate to cover the interest that might be charged between the dates...?

fatbelly

Orville wrote: »

Fat what is the rule with regards to over estimating my debts. The cab are putting mine on the system next Thursday, but i don't think i will have the £90 till the end of the month. Can i over estimate to cover the interest that might be charged between the dates...?

The balance figures quoted should be those that apply on the date of determination. That is taken to be the day after submission, and in most cases the DRO is approved on that day.

Although the CAB might be setting up your DRO on Thursday, they should not be submitting it until you can pay £90. At least I hope they won't be. In theory you have 10 days to make the payment after the submission but it causes the DRO unit problems if it isn't done on or before the day of submission.

I think you need to pick a day, say 30 Sept, when you can make the payment, the thing can be submitted and the balance figures estimated as accurately as you can for 1st Oct.

If in doubt, overestimate slightly (as long as it doesn't take you over 15k).

Orville

fatbelly wrote: »

The balance figures quoted should be those that apply on the date of determination. That is taken to be the day after submission, and in most cases the DRO is approved on that day.

Although the CAB might be setting up your DRO on Thursday, they should not be submitting it until you can pay £90. At least I hope they won't be. In theory you have 10 days to make the payment after the submission but it causes the DRO unit problems if it isn't done on or before the day of submission.

I think you need to pick a day, say 30 Sept, when you can make the payment, the thing can be submitted and the balance figures estimated as accurately as you can for 1st Oct.
Great thanks... and ten days after you say


If in doubt, overestimate slightly (as long as it doesn't take you over 15k).

So where does the six months come into it then..? i thought that was the time limit in which to pay...? I was thinking of paying on the 4th Oct, would that be to long then..? If so how does it cause problems..?

SouthCoast

So where does the six months come into it then..?

You can pay in instalments over a six month period. However, the Official Receiver won't consider your application until you have paid the fee in full. Once you've sent in your application, you won't be able to get the fee back.

http://www.adviceguide.org.uk/index/your_money/money_management_index_ew/help_with_debt_index_ew/debt_relief_orders.htm

Orville

SouthCoast wrote: »

You can pay in instalments over a six month period. However, the Official Receiver won't consider your application until you have paid the fee in full. Once you've sent in your application, you won't be able to get the fee back.

http://www.adviceguide.org.uk/index/your_money/money_management_index_ew/help_with_debt_index_ew/debt_relief_orders.htm

Yes that is what i thought but fat reckons they usually want it the day after submission..?

fatbelly

Orville wrote: »

So where does the six months come into it then..? i thought that was the time limit in which to pay...? I was thinking of paying on the 4th Oct, would that be to long then..? If so how does it cause problems..?

South Coast is correct - once you make a payment on your barcode you have six months to complete payments.

This is from the Guidance Notes:

Please Note that once an application has been submitted, the applicant will need to ensure that their application fee has been received by the Insolvency Service Finance Department within 10 days of submission. Due to the various automated interfaces that take place, in reality the debtor will need to ensure that the application fee is paid in full on the day of submission or sooner.

and

A DRO application can only be considered for determination once the application fee is paid in full. As such, the fee for entry into a DRO must be fully paid before the Official Receiver will consider the application. Debtors can pay the fee in instalments to suit their particular financial situation, and can pay in as many instalments as they choose until the entire application fee is covered, however a six month limit from receipt of the first instalment has been set, for full payment to have been received by the Insolvency Service. Once an application has been submitted and the fee has been paid in full, the fee is non refundable;