Debt Relief Orders (DRO) - Information & help thread

scarlet55

hi every-one...can some-one out there who has gone thru the dro buisness please advise me on a couple of things...im a bit confused on what i should put on my soa, are you allowed to put down internet, or is this considered to be a ''luxury'' also mobile phone, and what about social fund payments...i dont want to include the latter in my dro as i may want another 1 in the future, but are you allowed to put this on your soa, any help greatly appreciated

Sandella

I paid off two debts before xmas

one for £87.99 which although paid they are still chasing for

and another for £113

this settled both debts in full, I chose them because I could pay online without talking to them and all my other debts were alot bigger, and the fact that these two companies hassled me so much.

anyway will I be refused a DRO because of this, or have to wait another 2 years etc

The intermediary guidance notes........


[FONT=Arial, sans-serif]6.2[/FONT][FONT=Arial, sans-serif]Have you preferred any creditors over others in your payments within the last 2 years? *[/FONT]
[FONT=Arial, sans-serif]Please select ‘[/FONT][FONT=Arial, sans-serif]Yes[/FONT][FONT=Arial, sans-serif]’ or ‘[/FONT][FONT=Arial, sans-serif]No[/FONT][FONT=Arial, sans-serif]’ as appropriate. [/FONT]


[FONT=Arial, sans-serif]An example of a preferential payment could be when a debtor pays a creditor in full without paying his other creditors anything at all, thus placing one creditor in a far better position than the others. [/FONT]


[FONT=Arial, sans-serif]If ‘[/FONT][FONT=Arial, sans-serif]Yes[/FONT][FONT=Arial, sans-serif]’ is selected in answer to this question, that the debtor has made payments to another creditor within the last 2 years with a view to improving that creditor’s position, the debtor will need to provide the following information:[/FONT]

• [FONT=Arial, sans-serif]Name of the preferred creditor[/FONT]
• [FONT=Arial, sans-serif]Date of the payment to the preferred creditor[/FONT]
• [FONT=Arial, sans-serif]The amount that was paid to the preferred creditor.[/FONT]

...... so the payment would have had to have been substantial AND a deliberate intention to improve that creditors position in a DRO.

wba31

scarlet55 wrote: »

hi every-one...can some-one out there who has gone thru the dro buisness please advise me on a couple of things...im a bit confused on what i should put on my soa, are you allowed to put down internet, or is this considered to be a ''luxury'' also mobile phone, and what about social fund payments...i dont want to include the latter in my dro as i may want another 1 in the future, but are you allowed to put this on your soa, any help greatly appreciated

The SOA groups expenditure into "telephone costs" "Travel" "housekeeping" and other, after you have put down your priority household costs... so internet and mobiles arent specified, so you can budget for them

wba31

Sandella wrote: »

I paid off two debts before xmas

one for £87.99 which although paid they are still chasing for

and another for £113

this settled both debts in full, I chose them because I could pay online without talking to them and all my other debts were alot bigger, and the fact that these two companies hassled me so much.

anyway will I be refused a DRO because of this, or have to wait another 2 years etc

The intermediary guidance notes........


[FONT=Arial, sans-serif]6.2[/FONT][FONT=Arial, sans-serif]Have you preferred any creditors over others in your payments within the last 2 years? *[/FONT]
[FONT=Arial, sans-serif]Please select ‘[/FONT][FONT=Arial, sans-serif]Yes[/FONT][FONT=Arial, sans-serif]’ or ‘[/FONT][FONT=Arial, sans-serif]No[/FONT][FONT=Arial, sans-serif]’ as appropriate. [/FONT]


[FONT=Arial, sans-serif]An example of a preferential payment could be when a debtor pays a creditor in full without paying his other creditors anything at all, thus placing one creditor in a far better position than the others. [/FONT]


[FONT=Arial, sans-serif]If ‘[/FONT][FONT=Arial, sans-serif]Yes[/FONT][FONT=Arial, sans-serif]’ is selected in answer to this question, that the debtor has made payments to another creditor within the last 2 years with a view to improving that creditor’s position, the debtor will need to provide the following information:[/FONT]

• [FONT=Arial, sans-serif]Name of the preferred creditor[/FONT]
• [FONT=Arial, sans-serif]Date of the payment to the preferred creditor[/FONT]
• [FONT=Arial, sans-serif]The amount that was paid to the preferred creditor.[/FONT]

...... so the payment would have had to have been substantial AND a deliberate intention to improve that creditors position in a DRO.

I dont think anyone will be able to tell you 100% whether this will cause a problem or not. when did you first get advised of the DRO, that you are suitable? If you did not know about the DRO, had no intention at the time of doing the DRO, and had had no advice from anybody about it at that point, you could find it not cause an issue. but it is impossible for anyone to call other than the IS really...

Sandella

I haven't been advised by anyone, but have been waiting a year for the pension part of the this to be removed, got a bit fed up before christmas and wanted to shred all my bills as I'm moving house, so shredding and burning the two debt folders I paid felt great, must have been about a hundred letters each folder :eek: (I kept a few back for reference). Apart from these payments I have made, I qualify .

scarlet55

good morning every-one, just to say i have my appointment with the cab today about a dro, cant tell you how nervous i am...iv no idea what to expect when i get there so any advice greatfully accepted.

Orville

scarlet55 wrote: »

good morning every-one, just to say i have my appointment with the cab today about a dro, cant tell you how nervous i am...iv no idea what to expect when i get there so any advice greatfully accepted.

Don't be nervous is my advice for a start. Remember they are there to help you.:D

scarlet55

thanks orville...iv read a lot of you're posts and i know you have been thru this yourself xx

Orville

scarlet55 wrote: »

thanks orville...iv read a lot of you're posts and i know you have been thru this yourself xx

Yeah the cab officer whom i saw immediately put me at ease. She said a dro was the way to go before i even mentioned it. She gave me a list of stuff i need to get, amounts etc and also a sheet to send off for a free credit report and 2 or so weeks later she made an appointment with me to see her colleague to enter everything on the system and voila 30 or so minutes later it was all over. I walked out the door and got a mail next morning i think it was, saying it had all gone through smoothly and been accepted.:D

scarlet55

omg that was quick, it all sounds very encouraging..when i spoke to her on the phone i told her everything and she seems to think that i will get a dro...iv got a list of all my creditors and a bank statement, iv also been to the co-op bank to open up a cashminder account (i only knew about this from reading this forum )and hopefully that should be up and running in a couple of days, im wondering iff they will tell me to start making only token payments to my creditors...obviously i dont want to do that untill my new account is set up, but the sooner the better cuz my payments are crippling me, its a case of robbing peter to pay paul so to speak x