Debt Relief Orders (DRO) - Information & help thread

Debt_Tired

It appears that I fit all the criteria for a DRO. But I have a few additional questions:

I’m on JSA and my debts are around £12K. My assets include: single bed, bedding, up-light (used as bedside light), sideboard, wardrobe, bedside cabinet, books and magazines, alarm block, mobile phone (plus previous), clothes, cooker, fridge/freezer, kettle, toaster, microwave, hand blender, cutlery, crockery, pots and pans, cooking utensils, 21in TV, DVD player, Freeview decoder, sofa, coffee table (stained pine), shelving unit (£20 new), wetsuit, mask, snorkel, fins, weight belt, throw-overs/small rugs, small tool box with hand tools (hammer, screwdrivers, etc), cleaning products, ironing board, iron, clothes basket and cuddly toy (I kid you not). But I also own a DSLR (Nikon D40), while the ownership of the laptop I use is in doubt. It was lent to me by an arts organisation which ceased activities late 2008. I signed for it as being on loan, but they haven’t got back to me. This item is past its best, with a key missing and cracked case.

Question: do I also list items that are broken and which should really be thrown, but which hold some sentimental value? Do I also list items that belong to my dad, namely an archaic 8mm video camera (mid 1980s vintage and probably not working). And if someone has given me an item (hand-me-down), can I return it? I’m sure that they would understand my reasoning, but would that be considered naughty.

In addition, what format will an intermediary find most useful: word or excel document? I’m including:

Original Creditor
Type of Debt
Amount
Debt Collection Agency (if applicable)
Address
Telephone Number
Reference
Current Arrangement
Date of Last Communication

What else would be required?

Also, what about time-scale. I understand that some advisors are still training and it’s Easter, but how soon can I secure a DRO? Are we talking weeks or months? Would you also require a brief statement explaining my debt/work history? This is something I’m more than willing to give, because I want people to know why I’m in the current situation that I find myself in and the effect that debt has had on me personally…

And finally, I would like to start afresh after my year being on a DRO and I’m thinking of starting a limited company. How soon after my 12 months could I hypothetically become a director of a limited company? That’s said, I think being a sole-trader might be more appropriate. Not sure. Any advice on matters raised in this message would be (as always) appreciated.

TTFN

Debt Tired…

fiveyearplan

Well Debt tired you certainly seemed organised! I don't think you have to list any of those personal items you listed above.

debt_doctor

Hi debt tired,

All those things you have listed are exempt items as far as im concerned. If some one tells me they have 'normal household goods' that will be fine with me.

Do you have a single item that you could raise £ 300 on immediately ? No ? good !

You may well end up filling out much of the form yourself, as both the intermediary and the applicant have seperate log in details, its just 'us' who have to press the final button.

Also you could be a sole trader whilst under a DRO and a director once your DRO had ended. However, if at any time within a year of your DRO being granted you end up with surplus income of more than £50 pm then your DRO will be revoked.

DD

PlasticPennies

I'd agree, all seems like normal household goods.

As to starting up a business, you could do that during the twelve month moratorium (as a sole trader), but if your income changed, you would have to inform the OR and your order could be revoked.

After the twelve months, provided everything is in order, you can do what you like, including starting up a limited company, if that's what you decide to do.

PlasticPennies

Hey, DD, just out of curiosity, how many DRO applications have you submitted so far? Have you had any responses yet?

I submitted four last week and heard back about one (which was approved)

PlasticPennies

blind-as-a-bat wrote: »

Just wondering, as the applicant can fill the forms in online themselves, are they much differant to the BR ones?

Im wondering if they have simplified them

I think just the fact that it's online makes it easier than the BR forms. But yes, they are simpler (don't have to list all of your assets and value them individually, for example)

debt_doctor

PlasticPennies wrote: »

Hey, DD, just out of curiosity, how many DRO applications have you submitted so far? Have you had any responses yet?

I submitted four last week and heard back about one (which was approved)

Hello PP,

Absolutely none ! - I took holiday starting 6th April, can't imagine why:rolleyes:. According to written information I have the insolvency service have to report back to the intermediary in every case whether the DRO has been approved or not

How long did the aplications take you, and did you process all of it ?

DD

PlasticPennies

debt_doctor wrote: »

Hello PP,

Absolutely none ! - I took holiday starting 6th April, can't imagine why:rolleyes:. According to written information I have the insolvency service have to report back to the intermediary in every case whether the DRO has been approved or not

How long did the aplications take you, and did you process all of it ?

DD

I thought it said there would be an email either way as well, but I can't find it now. Is it in the guidance notes? All the cases were really straight forward, so I'm not expecting them to be declined, it's just taking a while to process them I suppose.

I think each one I did only took about thirty minutes, but they were all for clients of mine that I've been working with for months, so I already had all their information and we'd already spoken about DROs. All I really had to do was transfer the information from one form to another.

I think when you're starting from scratch with a new client, it could take several hours, and probably more than one appointment in most cases. Still, a lot less fuss and hassle than BR.

trilbythecat

How is this specifically different from bankruptcy?

The fees are lower, I see, but I also see on the website that there is still an OR, and the restrictions on DRO's and bankrupts are the same.

The period seems to be 3 years instead of 1? And the sentence, 'if your circumstances have not changed, the debts will be discharged'. This means that if your circumstances do change, you get all the debts back?

Trilby

*MF*

A different scheme, with different criteria came into force in Scotland last year.

Brief details of LILA (Low Income - Low Assets) scheme:

Following changes in Scottish bankruptcy laws which came into effect in April 2008, there are now 2 routes into bankruptcy, the Low Income Low Asset (LILA) scheme and Apparent Insolvency.

To qualify under LILA you must meet low income criteria and also have no single asset worth more than £1,000 or assets totalling more than £10,000. This also means that you must not own or jointly own a house or any other property or land.

Under the LILA criteria, 'low income' means gross weekly income of no more than the standard national minimum wage for a forty hour working week. This is currently equivalent to £220.80 a week. Any pensions or maintenance payments that you receive will also be included in your income.

Extract from here:

http://www.scottishdebtline.co.uk/faqs/bank.htm