Debt Relief Orders (DRO) - Information & help thread

wba31

Orville wrote: »

Well i would have thought so yes unless he had a furter order placed that increases the length of the DRO but you would know about that.. Give the Insolvency people a call and just give them your case number and they should be able to update you.

Google search for the Individual Insolvency Register, and search in the DRO Unit (offices drop down list) and input the name. find your partner (was it your partner? ive forgot in the time ive taken to log in) and it will show the end date of the DRO in their listing...

wba31

stephy110288 wrote: »

hi. i just wondered if anyone else knew about the change to DRO's to allow pension holders? i have seen it here- http://money.uk.msn.com/news/money-news/articles.aspx?cp-documentid=155206974
if anyone knows anymore about this, and if its definitely happenin, id love to know? I dont want to get my hopes up and then it never happens because thats pretty much what happened this year

also another question... i am a student and i have a £1000 interest free overdraft that i'm always in my limit of, and its with santander who are my main bank account (the one that i dont owe anything to) would this HAVE to be included in my DRO? because i'm quite comfortable with it and its interest free. abbey national are well aware of my situation with money and were still happy to give me the overdraft?
also does anyone know anything about shares? my dad used to give me money for the share scheme where i used to work. so they are in my name but they are his, would they ask about shares for the DRO?
thanks for any advice

From what I have been told it will not be until April that the pension element will be removed from the rules.

With the overdraft, if you are consistently in it, whether you are struggling or not it is still a debt and should be included in your DRO. It would be much better to move to a new bank and live in the black permenently.

With assets if you can prove that someone else has paid for them, like most people can with a car, it should be fine. may not be so easy with shares. if the value is under £300 however...?

GoodDay_2

Hello,

I have come to this website as advice from a friend and finally decided to take the brave steps, so your help would be much appreciated.

I need help and advice on the Debit Relief Order (DRO) and how to go abouts starting the process. I see this is a very very long thread, in fact too long! This is why, if you could point me to relevant threads or posts on how to start it would be very useful. I've read upto the first 10 pages...

The last time I checked, DRO could no longer be done online, so what is the situation now?

For your information this is my situation:

1. My debits, which I have built over several credit cards (I've been with these credit card companies since the early 80s!) amount to less than £15K.

2. I've always been in debt with CC companies (since the 80s) but I've been able to manage them since I had a stable job, but as I grew older, had health problems and lost my job for the past four years or can't work due to health problems, my debt have also catched up with me. I simply cannot continue to borrow more money from family and friends to continue paying the absolute MINIMUM to these CC companies since it does little to bring the overall balance down.

3. I have no assets in terms of house, car, shares or anything else of value. I do have a few bank accounts but they have no more than a few hundred pounds, if that.

4. Currently my income is totally on benefit: Child Benefit (my child is still in full time education at college); Child Tax Credit, which is claimed and paid into my partners account; Income Capacity Benefit.

5. My outgoings are mainly the debts (what's killing me), food, child, bills, transports, clothes and general expenses. No rent as I live with family members.

Now before I go to an advisor, I would like to know the process and what I need to do before proceeding.

I am aware that after all my expenses I should not have more than £50 left as a condition, amongst other conditions of DRO.

However my questions are as follows:

1. The expenses that are taken into account to ensure one does not have more than £50 left over, does this also take into account the debt you also pay, because if I didn't have to pay these debt than I may have more than £50 left over. Surely it must also take into account the debts.

2. Will my partners income, or more specifically, the Child Tax Credit, is that taken into account as income?

3. Could someone kindly point me towards how to work out and outline in some formal manner how to write me expenses out. Are there certain procedures, templates or protocols?

4. Will all my bank account be closed? If so, how do I get my benefits paid into?

5. How do I begin? Can it not be done online or do I have to make an appointment with my local Advice Beurea?

Any other advice or anything else with helping me get through this would be immensely appreciated to an old folk with very little knowledge and confidence.

Thank, thank you very much.

immoral_angeluk

GoodDay wrote: »

The last time I checked, DRO could no longer be done online, so what is the situation now?
The DRO application is online. However you need the help of an approved intermediary to go through the application. These are specialist money advisors, usually found through CAB, CCCS, etc.


1. My debits, which I have built over several credit cards (I've been with these credit card companies since the early 80s!) amount to less than £15K. The upper limit of DRO eligibility is 15k.

...

3. I have no assets in terms of house, car, shares or anything else of value. I do have a few bank accounts but they have no more than a few hundred pounds, if that. Is this money that is needed for living expenses? The assets limit is £300 or £1000 for a car, but assets is determined as any funds which are not needed for living expenses, or items of realisable value (ie what they would sell for.)

4. Currently my income is totally on benefit: Child Benefit (my child is still in full time education at college); Child Tax Credit, which is claimed and paid into my partners account; Income Capacity Benefit.
So long as you have no more than £50pm disposable income you will qualify, especially if you are on benefits as these are designed to just be the money you require to live o..

5. My outgoings are mainly the debts (what's killing me), food, child, bills, transports, clothes and general expenses. No rent as I live with family members. Do you pay board? Again, so long as your disposable income after your reasonable living expenses doesn't come to more than £50 pm you'd be fine.

Now before I go to an advisor, I would like to know the process and what I need to do before proceeding. You need to see an approved intermediary who will advise you on the process, check your full eligibility and inform you of all your options. The application is done online with the intermediary, you need a credit check done, to meet all the criteria and be able to afford the £90 fee if you decide to go ahead.


However my questions are as follows:

1. The expenses that are taken into account to ensure one does not have more than £50 left over, does this also take into account the debt you also pay, because if I didn't have to pay these debt than I may have more than £50 left over. Surely it must also take into account the debts. No, the £50 is before any debt repayments, unless for debts which would otherwise be excluded from the DRO such as student loans, CSA, ongoing bills etc..

2. Will my partners income, or more specifically, the Child Tax Credit, is that taken into account as income? Yes, as tax credits will be a joint claim with your name on it also.

3. Could someone kindly point me towards how to work out and outline in some formal manner how to write me expenses out. Are there certain procedures, templates or protocols? Your expenditure cannot exceed 'trigger figure' guidelines as set by the british bankers association without good explanation. You will need to complete an income and expenditure sheet with your approved intermediary to check your expenditure is within these guidelines.

4. Will all my bank account be closed? If so, how do I get my benefits paid into? Nope. DROs don't affect your bank account, however, if you have any debt with that bank such as an overdraft or credit card the bank will be likely to close it themselves, and your future credit rating will be affected so it may be harder to switch accounts in the future.

5. How do I begin? Can it not be done online or do I have to make an appointment with my local Advice Beurea? Again, you have to see an approved intermediary through CAB, CCCS etc. The whole point of them is to make sure you are fully aware of everythings including the pros, cons, implications, as well as making you aware of all of your debt options. They also assist you to make the application. You cannot make a DRO application without going through an approved intermediary.

Any other advice or anything else with helping me get through this would be immensely appreciated to an old folk with very little knowledge and confidence. Check out the CAB's DRO guide. http://www.adviceguide.org.uk/index/your_money/money_management_index_ew/help_with_debt_index_ew/debt_relief_orders.htm

I hope that helps!

GoodDay_2

Oh thank you very much for your fast response immoral_angeluk; in response to your questions:

1. Yes, I'm on total benefits and the small amount of money in my accounts are the money recieved from benefits so this fluctuates every month as I use it.

2. I live with family members, my daughter, the house is under her name, and I try to help as much as I can with the mortgage, since she is struggling to pay and may even have to give up the house soon. But the money I give to her is not formal, or no written contract exists between us, in terms of a rent contract or any record/receipts that I give her this money...I give her cash and it's not consistent. How could I show this to the intermediary?

3. Sorry, could you clarify, whether they would take into consideration my debts that I pay every month to the CC companies to work out the £50 threshold? With these CC debts I go into red every month.

So what you are saying is, if I did not have the Credit Card debts, as in after a successful DRO application, if my income amount to £50 or more than I would not be eligible i.e the £50 threshold is taken into account when no debt exists (besides those you cannot be relieved from).

4. Do you have any further information on the "trigger figures".

5. I forgot to mention that I also own a lot of money to people, family and friends which I have had to borrow over the years to keep afloat. Can I put these into the application or does it only include formal debt?

6. A lot of the household bills, I pay, but they are under my daughter's name. Does the intermediary ask for evidence of bills etc

Just going through CABs DRO guide as well as reading this extremely long thread (88 pages and counting!) - I may learn something from other members.

Thank you once again and I do appreciate your response.

mazzatee

Hi GoodDay

When determining what surplus you have available the intermediary will have a set of guideline figures to work to to help them assess how much you need to spend on rent & utility bills, food, clothing, haircuts, and any other expenses you may have. It is common for people to pay their creditors and not leave themselves enough to live on so you really do need some expert help. The trigger figures are not readily available and depend on your income and family size.

Have you tried going to cccs website? They have an online service called debt remedy where you can put in your debts, your income and expenditure and they will advise you as to your best option. They will allow you reasonable amounts for the necessary items and you will probably find you have little left.

You can put all provable debts into your DRO - this is where debts to family usually dont go in as it is difficult to prove them. You cannot pay anything back to them in the 12 month moratorium period of the DRO.

Hope this helps.

Orville

GoodDay wrote: »

Oh thank you very much for your fast response immoral_angeluk; in response to your questions:

1. Yes, I'm on total benefits and the small amount of money in my accounts are the money recieved from benefits so this fluctuates every month as I use it.

2. I live with family members, my daughter, the house is under her name, and I try to help as much as I can with the mortgage, since she is struggling to pay and may even have to give up the house soon. But the money I give to her is not formal, or no written contract exists between us, in terms of a rent contract or any record/receipts that I give her this money...I give her cash and it's not consistent. How could I show this to the intermediary?

3. Sorry, could you clarify, whether they would take into consideration my debts that I pay every month to the CC companies to work out the £50 threshold? With these CC debts I go into red every month.

So what you are saying is, if I did not have the Credit Card debts, as in after a successful DRO application, if my income amount to £50 or more than I would not be eligible i.e the £50 threshold is taken into account when no debt exists (besides those you cannot be relieved from).

4. Do you have any further information on the "trigger figures".

5. I forgot to mention that I also own a lot of money to people, family and friends which I have had to borrow over the years to keep afloat. Can I put these into the application or does it only include formal debt?

6. A lot of the household bills, I pay, but they are under my daughter's name. Does the intermediary ask for evidence of bills etc

Just going through CABs DRO guide as well as reading this extremely long thread (88 pages and counting!) - I may learn something from other members.

Thank you once again and I do appreciate your response.

I can't answer all those questions they are for Fat or Immoral but one i can answer is the £50 threshold. This DOES NOT include your debts. If it did there would be no point in having a DRO as you can actually afford to pay them and still have a small amount left over.

nitenursefonk

Hi

Just joined the website always browsed but never commented however my partner has now got into serious financial trouble with his debts and he cannot manage to pay them anymore even with me helping him out as i cant afford to help anymore as i have 2 children and a grandchild to look after.
If my partner was to apply for a DRO ( we have looked thru the qualifying section and he meets the criteria ) would i have to be involved at all, no debts are in my name it is all my partners debt some of it is from before we met.
If he has to do it and add my details he wouldnt qualify so i am confused here as i feel that i shouldnt be involved as the debt is nothing to do with me.
Can someone please advise, any is appreciated.

Orville

nitenursefonk wrote: »

Hi

Just joined the website always browsed but never commented however my partner has now got into serious financial trouble with his debts and he cannot manage to pay them anymore even with me helping him out as i cant afford to help anymore as i have 2 children and a grandchild to look after.
If my partner was to apply for a DRO ( we have looked thru the qualifying section and he meets the criteria ) would i have to be involved at all, no debts are in my name it is all my partners debt some of it is from before we met.
If he has to do it and add my details he wouldnt qualify so i am confused here as i feel that i shouldnt be involved as the debt is nothing to do with me.
Can someone please advise, any is appreciated.

If all the debts are in his name only, then you would not be included

fatbelly

Orville wrote: »

I can't answer all those questions they are for Fat or Immoral but one i can answer is the £50 threshold. This DOES NOT include your debts. If it did there would be no point in having a DRO as you can actually afford to pay them and still have a small amount left over.

Correct!

I did spot Gooday's post - honestly, the best course of action would be to get an appointment with an intermediary and chat things through.

We're not suposed to post the trigger figures but I think Fermi was naughty and did so earlier in this thread!