Debt Relief Orders (DRO) - Information & help thread

Frankie231

Thats what I was saying, I'm not particularly bothered if they take them back, as you've rightly said; it's just a washing machine and a bed. I've been advised to send the creditors a letter offering them £1 a month. I was more confused than worried because I'd been told to send the items back (again, not really an issue) but then I'd also been told that I could include them (which I would like to try and do, after all, even with a DRO I'd still have the same amount of money available every month, it just wouldn't be eaten by debts and it would take me a long while to be able to replace them, even with buying second hand). I was just unsure of the process in regards to going about it, did I have to keep paying the minumim to be able to include them, or could I send them a letter offering £1.00 a month.

Orville

Frankie231 wrote: »

Thats what I was saying, I'm not particularly bothered if they take them back, as you've rightly said; it's just a washing machine and a bed. I've been advised to send the creditors a letter offering them £1 a month. I was more confused than worried because I'd been told to send the items back (again, not really an issue) but then I'd also been told that I could include them (which I would like to try and do, after all, even with a DRO I'd still have the same amount of money available every month, it just wouldn't be eaten by debts and it would take me a long while to be able to replace them, even with buying second hand). I was just unsure of the process in regards to going about it, did I have to keep paying the minumim to be able to include them, or could I send them a letter offering £1.00 a month.

No send the offer letter to them. It's the whole point of you doing a DRO. You can't afford the full amount of the debts so just send the offer letter offering the bare minimum.

If you want my advice i would contact your local CAB. I went through them and i must say the whole process was really quick. I think the CCCS are very busy at the moment and it may take a while to process. At least with the CAB you get to see someone "Face to Face" which is much easier to get get your points across and have a better understanding of what they are saying.

I don't think they even need to know if it's a HP debt. All they are interested in is, what is the total amount of each debt and do all debts within the DRo you are going for fall under the 15k limit. I wouldn't even mention HP again to them.

Frankie231

Thats absolutley brilliant, in that case all I'll do is finally stop making payments on the HP and send them a letter to offer £1.00 a month off the remaining balance of the debt. I'll start making those payments if it hasn't been delt with by then and hopefully it will be granted soon and we can draw a line under the whole experience.

wba31

Frankie231 wrote: »

Thats absolutley brilliant, in that case all I'll do is finally stop making payments on the HP and send them a letter to offer £1.00 a month off the remaining balance of the debt. I'll start making those payments if it hasn't been delt with by then and hopefully it will be granted soon and we can draw a line under the whole experience.

Are the debts actually hire purchase? or have they been sold to you as hire purchase but are actually loans?

As it has been said, all debts must be included within a DRO, including the balances of these HP/loans (whatever they are). From my point of view though, you should not maintain payments to them as this would be classed as preferential treatment.
If the items were purchased under a loan (and you were led to believe it is a HP) there is a chance the debt will be dealt with within the DRO and you may keep the items

last i heard CCCS dont have that much a delay on DRO's, and they have a specialist team to offer advice so it might be worth giving that team a call if you have been given their number.

Orville

Frankie231 wrote: »

Thats absolutley brilliant, in that case all I'll do is finally stop making payments on the HP and send them a letter to offer £1.00 a month off the remaining balance of the debt. I'll start making those payments if it hasn't been delt with by then and hopefully it will be granted soon and we can draw a line under the whole experience.

Yes believe me once you get the call or e-mail in my case saying it's all gone through, it's a massive relief.

Frankie231

wba31 wrote: »

Are the debts actually hire purchase? or have they been sold to you as hire purchase but are actually loans?

As it has been said, all debts must be included within a DRO, including the balances of these HP/loans (whatever they are). From my point of view though, you should not maintain payments to them as this would be classed as preferential treatment.
If the items were purchased under a loan (and you were led to believe it is a HP) there is a chance the debt will be dealt with within the DRO and you may keep the items

last i heard CCCS dont have that much a delay on DRO's, and they have a specialist team to offer advice so it might be worth giving that team a call if you have been given their number.

I checked my contracts last night and one of them is a hire purchase agreement but the other just states credit agreement.

I haven't been given their number yet, CCCS are sending me out a pack detailing everything we spoke about on the phone and containing a form for me to sign regarding the DRO, apparently all phone numbers that I need will be in this.

Frankie231

Orville wrote: »

Yes believe me once you get the call or e-mail in my case saying it's all gone through, it's a massive relief.

To be completely honest, right now the entire idea seems to good to be true. I keep expecting someone to just out at me, shouting 'just kidding'.

sandland1875

Hi all,

Im looking at getting a DRO to try and help me with my debts which are out of control. Problem is that I am a student so if I apply for a DRO does this mean that I will no longer be elegible for my student loan payments which make up around 75% of my income?

Any response would be much appreciated.

Orville

sandland1875 wrote: »

Hi all,

Im looking at getting a DRO to try and help me with my debts which are out of control. Problem is that I am a student so if I apply for a DRO does this mean that I will no longer be elegible for my student loan payments which make up around 75% of my income?

Any response would be much appreciated.

http://debtrelieforders.co.uk/2009/06/24/debt-relief-order-ideal-for-students/

I don't think it would effect your payments.

sandland1875

Orville wrote: »

I don't think it would effect your payments.

Many thanks