Debt Relief Orders (DRO) - Information & help thread

Flyright

If your partner is going bankrupt then the car finance will have to be included in his bankruptcy information. Depending on the type of finance the car may legally belong tothe finance company anyway, who may repossess it once the OR tells them about the bankruptcy. You need to see what the finance type is, if it's a loan then the car will probably be considered as an asset in bankruptcy.

immoral_angeluk

gemma4342 wrote: »

hi, I was wondering if anyone can help me me and my partner are trying to get our lives back on track after some very bad decisions. My partner has the bankruptcy forms and is taking them in this week as he owes quite alot i owe around 10,000 and not sure if its better for me to go bankrupt with him or get a dro.

Another big problem i have is my car the finance is in his name and it comes out of his account the car used to be in my dads name but we found out he had to be on the insurance if he owned the vehicle so it has been changed into my name. So who owns the car its in my name but my dads finance.
If I change it back into my dads name will it look like i'm just doing it for a dro.

Confused and worried. Any help i'd be so grateful x

A DRO is a qualifying debt in a DRO and bankruptcy, and so you would not be allowed to continue with payments and as such the car would be repossessed. With DROs I know you are allowed to ask a third party to make the payments for you so you don't lose the car and I'd imagine this is the same in Bankruptcy, for the moratorium/undischarged period.
As the car is not legally yours until all the payments are made it will not be counted as an asset in either bankruptcy or a DRO.

wba31

immoral_angeluk wrote: »

A DRO is a qualifying debt in a DRO and bankruptcy, and so you would not be allowed to continue with payments and as such the car would be repossessed. With DROs I know you are allowed to ask a third party to make the payments for you so you don't lose the car and I'd imagine this is the same in Bankruptcy, for the moratorium/undischarged period.
As the car is not legally yours until all the payments are made it will not be counted as an asset in either bankruptcy or a DRO.

with regards to the HP in bankruptcy, you may need to check the HP agreement, some say that they will not let the car be kept in the result of insolvency regardless of who's paying? not sure if they always follow through with that though?

immoral_angeluk

wba31 wrote: »

with regards to the HP in bankruptcy, you may need to check the HP agreement, some say that they will not let the car be kept in the result of insolvency regardless of who's paying? not sure if they always follow through with that though?

Very true, I've not come across a case yet where someone has gone bankrupt and wanted to keep the car or it hadn't already been repossessed... lol!

gemma4342

I dont understand why my partner has to put the car in his bankruptcy?
My dad bought the car for me as a present and he pays for it, its just in my name for insurance purposes how can they reposses a car I dont pay for or technically own same as why should my partner put the car down when my dad pays for it and the finance is in my dads name.
Its just i'm going to get stuck in this mess over a present my dad will flip if the car gets repossesed and he gets bad credit.

immoral_angeluk

gemma4342 wrote: »

I dont understand why my partner has to put the car in his bankruptcy?
My dad bought the car for me as a present and he pays for it, its just in my name for insurance purposes how can they reposses a car I dont pay for or technically own same as why should my partner put the car down when my dad pays for it and the finance is in my dads name.
Its just i'm going to get stuck in this mess over a present my dad will flip if the car gets repossesed and he gets bad credit.

You said the finance was in your partner name in your previous post?

immoral_angeluk

gemma4342 wrote: »

hi, I was wondering if anyone can help me me and my partner are trying to get our lives back on track after some very bad decisions. My partner has the bankruptcy forms and is taking them in this week as he owes quite alot i owe around 10,000 and not sure if its better for me to go bankrupt with him or get a dro.

Another big problem i have is my car the finance is in his name and it comes out of his account the car used to be in my dads name but we found out he had to be on the insurance if he owned the vehicle so it has been changed into my name. So who owns the car its in my name but my dads finance.
If I change it back into my dads name will it look like i'm just doing it for a dro.

Confused and worried. Any help i'd be so grateful x

as highlighted...

Can you also clarify if it's you or your partner... because in one sentance you seem to be implying it's to do with you.. in the next your partner...

DanDoc72

Hello I have just lost my job and with 2 credit cards and a loan I am Considering applying for a RDO.

I was just wondering because I will be making a claim for Jobseekers allowance on monday, my wife gets £80 per week child tax credit and £130 family allowance per month.

will my Wifes £80 per week child tax credit and her £130 family allowance per month be counted as my income ?

PandaPaws_3

Hmmm... just got home and checked emails and phone.. no word yet from the IS as to whether my DRO has been approved (on tenterhooks).. and then I checked the online insolvency register, and I'm on there... I wonder if I can take that as confirmation... I have had a LOT of phone messages today from my credit card companies and my current account so they must have had some notification... I'm so nervous, been cleaning the house like a mad woman to try and forget it, the carpets are starting to change colour (as is my hair)... I don't want to bother the CAB again, I know I need to just wait for a letter to arrive, I'm just impatient! Aagh...

wba31

PandaPaws wrote: »

Hmmm... just got home and checked emails and phone.. no word yet from the IS as to whether my DRO has been approved (on tenterhooks).. and then I checked the online insolvency register, and I'm on there... I wonder if I can take that as confirmation... I have had a LOT of phone messages today from my credit card companies and my current account so they must have had some notification... I'm so nervous, been cleaning the house like a mad woman to try and forget it, the carpets are starting to change colour (as is my hair)... I don't want to bother the CAB again, I know I need to just wait for a letter to arrive, I'm just impatient! Aagh...

If your details are on the Individual Insolvency Register it sounds like it has been approved. In my experience the DRO Unit will write to you to confirm. Make a note of the DRO number off your register listing and quote it at any creditor calling you, thats the proof your order is in place!