Debt Relief Orders (DRO) - Information & help thread

Orville

SingleMumOf2 wrote: »

it says i can also apply for money towards me and my kids. can i state i want no more than £500? as it says they may give up to £1,500. i really dont want to mess up my dro. but if i can get help towards clothes for the kids that would help me so much

Hmm well i don't see why you can't say that you want no more then £500...

I think there is a blank page at the back of the application form (Part 8) where you can put down extra info etc. If you put the request there i think you should be ok.

SingleMumOf2_3

thank you. def dont need more than 500 lol. plus wouldnt want to be paying it back for months. ill try and get a few quotes and include them on the notes section.

Orville

SingleMumOf2 wrote: »

thank you. def dont need more than 500 lol. plus wouldnt want to be paying it back for months. ill try and get a few quotes and include them on the notes section.

Just some info on repayment terms you may not be aware of...

Repayment period

The total debt should normally be repaid in 104 weeks (2 years).
Repayment rates

There are three standard repayment rates which apply. These rates depend on your existing financial commitments.
The rates are equivalent to 12 per cent, 10 per cent and 5 per cent of your weekly

• Income Support available income (and including Child Benefit and Child Tax Credit where appropriate)
• or Jobseeker’s Allowance available income (and including Child Benefit and Child Tax Credit where appropriate)
• or Employment and Support Allowance available income (and including Child Benefit and Child Tax Credit where appropriate).
• or Pension Credit (and including Child Benefit and Child Tax Credit where appropriate)

excluding any housing costs.
Repayment at 12 per cent rate

If you have no other debts to repay, you will be expected to pay an amount equal to 12 per cent of your weekly

• Income Support available income (and including Child Benefit and Child Tax Credit where appropriate)
• or Jobseeker’s Allowance available income (and including Child Benefit and Child Tax Credit where appropriate)
• or Employment and Support Allowance available income (and including Child Benefit and Child Tax Credit where appropriate).
• or Pension Credit (and including Child Benefit and Child Tax Credit where appropriate)

excluding any housing costs.
Repayment at 10 per cent rate

If you have some other payments to make from your benefit, such as rent or fuel arrears, the repayment rate may be lowered to 10 per cent of your weekly

• Income Support available income (and including Child Benefit and Child Tax Credit where appropriate)
• or Jobseeker’s Allowance available income (and including Child Benefit and Child Tax Credit where appropriate)
• or Employment and Support Allowance available income (and including Child Benefit and Child Tax Credit where appropriate).
• or Pension Credit (and including Child Benefit and Child Tax Credit where appropriate)

excluding any housing costs.
Repayment at 5 per cent rate

If your commitments are larger (for example, you have higher payments to make from your benefit or are repaying several personal debts) the repayment rate will normally be 5 per cent of your weekly

• Income Support available income (and including Child Benefit and Child Tax Credit where appropriate)
• or Jobseeker’s Allowance available income (and including Child Benefit and Child Tax Credit where appropriate)
• or Employment and Support Allowance available income (and including Child Benefit and Child Tax Credit where appropriate).
• or Pension Credit (and including Child Benefit and Child Tax Credit where appropriate)

excluding any housing costs.
If you can repay your total debt within 104 weeks (2 years) at one of the above standard repayment rates, we will make you one offer. If you cannot repay your total debt within 104 weeks, we may give you another choice based on the standard repayment rate. We may offer you a lower amount of new loan which can be repaid at a standard repayment rate in 104 weeks.

SingleMumOf2_3

Thank you.

debrag

can debts be sold during a DRO?

Orville

debrag wrote: »

can debts be sold during a DRO?

I am not sure myself on that one. That is a question for the more experienced members of this forum. However you should not lose sight of the fact that while you are under a DRO NO ENFORCEMENT action can be taken and the debts do get wiped after a year, unless the debt does not fall within the schedule of a DRO, an example might be the CSA. Credators can however gain leave through the courts to pursue a debt, but if that were to happen you would know about it.

fatbelly

debrag wrote: »

can debts be sold during a DRO?

Can't say I've seen this happen yet but I'm aware that Max Recovery/Fairfax Solicitors do buy this type of debt so I suspect the answer is 'yes'

Why do you ask?

debrag

well MBNA sold my debt to Arrow Global Jan 2010!

fatbelly

debrag wrote: »

well MBNA sold my debt to Arrow Global Jan 2010!

Were you in a DRO then?

I wonder if MBNA told them. I suspect not.

Anyway, not your problem. Provided the DRO holds up, the debt is unenforceable and then dissolved, as Orville said.

debrag

yep it finish in July 2010 just trying tos ort out my credit file and I have both on there!