Debt Relief Orders (DRO) - Information & help thread

Debt_Tired

What concerns me are the tactics likely to be used by DCAs to prevent me from securing a DRO? What is to stop a DCA from researching my credit history and thereafter increasing my debt (some DCAs have been known to do this) and if you’re just within the £15K, then suddenly that individual £8K debt becomes a £9K debt and if others follow suit…

…(actually my debt is around £13K in total).

Also, what happens if you’re unsure who now owns a debt? What happens if the paperwork sent to a DCA isn’t acknowledged or ignored? After you have been discharged can a DCA argue that because they knew nothing of the DRO they will continue to pursue a debt? Can a creditor refuse to go along with a DRO or appeal against the awarding of a DRO?

DCAs are crafty. They know the system inside out. They also know that the authorities aren’t keen on throwing the book at naughty DCAs as some of us would like. I’m not worried about the £50 disposal income (I’m on JSA), but my assets are also a concern. I don’t own my home or a car or any collectables or antiques. My flat is furnished with mostly second-hand items or cheap white goods (£25 microwave and £15 DVD player). Nothing of real value, but anyone can argue that my assets or indeed anyone’s assets are worth more than £300. If a debt is sizable (and therefore profitable to hold onto) what is to stop a DCA from making discreet enquires?

Since been told about DRO I have pinned my hopes on this being the way out of my nightmare (other than the stockpile of small yellow tablets I keep beside my bed). I’m tired of those snotty little bar-stewards who keep sending me nasty letters or who phone me. I’m unemployed and fed up with it all. DROs appear to be my salvation, but if the DCAs choose to be obstructive and I don’t secure a DRO then my life is over…

I chose the name Debt Tired for a reason…

PlasticPennies

Debt collectors have to provide evidence if they want to challange your assets, or anything else relating to a DRO. They can't just say they think you own a £800 TV, for example, they would have to provide proof.

When you list your debts in your application, you need to put the most recent correspondence you have had, so if the debt has been passed onto a collection agency, you put down the collection agency as a creditor. If the debt gets passed on and you haven't heard about it yet, or if it gets passed on after your application, that's tough luck for the debt collection agency, the debt will still be subject to the DRO.

Godiva500

Hi I am getting really P****D off!! I spoke to CCCS yesterday, there system crashed and said they would call me back today - not done so yet. I have tried calling them 4 times and can't get through - I just get call again later! If they don't get a move on I will be over the 15k debt limit - they have already told me the appointments are being made for May!! I am really panicking now....

North_East_Derbyshire_CAB

Hi all,

On the issue of pensions here is a quote from the latest (V2.0 April 09) Insolvency Service Intermediary Guidence notes (bottom of page 30 for those who have access).

Please Note - If the applicant has a pension fund , the intermediary will need to satisfy themselves that the FUND VALUE does not exceed £300 and consequently preclude the debtor from applying for a DRO.

There are implications here and it looks like pensions will have a significant effect on whether someone qualifys for a DRO.

NED-CAB

PlasticPennies

Godiva500 wrote: »

Hi I am getting really P****D off!! I spoke to CCCS yesterday, there system crashed and said they would call me back today - not done so yet. I have tried calling them 4 times and can't get through - I just get call again later! If they don't get a move on I will be over the 15k debt limit - they have already told me the appointments are being made for May!! I am really panicking now....

Maybe try somebody else, National Debtline or CAB for example.

elfieb

Godiva500, I rang NDL on Monday, was told their first availabla appointment was 23rd April so I gladly accepted.
Following some further information regarding the £90 fee, I rang NDL again yesterday, and was told that due to the sheer numbers applying for a DRO, their system had changed slightly. She then went through my SOA, told me I qualified, and informed me that forms would be sent out to me to fill in, and that I should ignore the original appointment date.

Maybe you should try NDL? Best time to call is either really early in the morning or after 6pm. They get really busy, and you can find yourself on hold for a while.

Merlinexcalibur

Not surprised the system is crashing. Surprised it never went into total meltdown with the thousands of redundancies, thousands suddenly stranded on that 'island' called debt with no perceivable lifebelt having not experienced it before or that the lifebelt was even there to see in the dark, icy waters with the rocky icebergs. No, Celine Dion is not going to start warbling over the end credits here!

TokSik

Can we do two applications as together we owe 28,000......14000 each

You need to be aware that although you owe £14K now, at the end of the 12 month moratorium, that £14K may have attracted interest and additional charges from the creditors within the total, which may bring the total above the £15K limit, which would cause it to be revoked (after which you'll lose your fees and be back to square 1), so do your maths carefully before you pay your £90 fee (each).

Godiva500

CCCS phoned me back this evening - apologised for it not being earlier. This was due to the volume of work they have had. Understandable really. The nice lady who dealt with me, Judith, is sending me out the barcode letter for me to pay at PO, and i am to send in my Credit report, and proof of income, then she will make an appointment for someone to go through the details - then the application is sent to OR.

Ispoke to a CcCS advisor yesterday about my SOA, and we went through it, before it was sent on to Judith. He was very helpful, and I gleaned 2 bits of info that help. There are 2 of us in our household, and no children. he said that I was allowed up to £383 for groceries and clothing combined. There is also an "other expenses" section of up to £100. This was to include things like haircuts, emergency fund, presents, holidays, TV etc.
Hope this helps and is correct.

So_Sad_Angel

Hi Godiva

I`m glad that CCCS got back to you & you sound much more positive. Might be interesting to see an accepted SOA for the DRO.....just to understanding what the levels of expenses are allowable.

Good luck with everything,

Angie