Debt Relief Orders (DRO) - Information & help thread

bluesbro28

i am putting this question on on behalf of my wife as i have previously stated that i am going bankrupt. She has her appointment for her DRO next week, and has sent all her holding letters off to all her creditors as advised by the CAB. She owes in total £13,500 so is within the limit but she is concerned about Welcome Finance.

She has already had two different figures from them as to how much she owes for her 2 grand loan from them, their solicitors only saying £3,000 and their office and her credit file sayin £5,000. obviously she has used the higher amount in working out her debts, but is concerned that Welcome will try adding on as much interest as possible on to this once they receive her letter and push her over the limit for the DRO.

last year while we were still under debt management this figure for her loan had been reduced to £2,500, but somewhere over the last 4 months, £3,000 worth of interest seems to have gone on, meaning that she apparently has paid nothing off her loan since she took it out 2 years ago. she is really worried they will magic up some more interest to put on before her order can go through. if this happens can she contest this?

scarlet55

hi orville, i dont have a car and i have all the upto date balances....and a clean pair of undies just in case lol...i have to be there for 1oclock so will let u know later how i get on x:):)

scarlet55

good luck kerry xx

Orville

scarlet55 wrote: »

hi orville, i dont have a car and i have all the upto date balances....and a clean pair of undies just in case lol...i have to be there for 1oclock so will let u know later how i get on x:):)

You'll be fine....

bluesbro28

i am putting this question on on behalf of my wife as i have previously stated that i am going bankrupt. She has her appointment for her DRO next week, and has sent all her holding letters off to all her creditors as advised by the CAB. She owes in total £13,500 so is within the limit but she is concerned about Welcome Finance.

She has already had two different figures from them as to how much she owes for her 2 grand loan from them, their solicitors only saying £3,000 and their office and her credit file sayin £5,000. obviously she has used the higher amount in working out her debts, but is concerned that Welcome will try adding on as much interest as possible on to this once they receive her letter and push her over the limit for the DRO.

last year while we were still under debt management this figure for her loan had been reduced to £2,500, but somewhere over the last 4 months, £3,000 worth of interest seems to have gone on, meaning that she apparently has paid nothing off her loan since she took it out 2 years ago. she is really worried they will magic up some more interest to put on before her order can go through. if this happens can she contest this?

wba31

bluesbro28 wrote: »

i am putting this question on on behalf of my wife as i have previously stated that i am going bankrupt. She has her appointment for her DRO next week, and has sent all her holding letters off to all her creditors as advised by the CAB. She owes in total £13,500 so is within the limit but she is concerned about Welcome Finance.

She has already had two different figures from them as to how much she owes for her 2 grand loan from them, their solicitors only saying £3,000 and their office and her credit file sayin £5,000. obviously she has used the higher amount in working out her debts, but is concerned that Welcome will try adding on as much interest as possible on to this once they receive her letter and push her over the limit for the DRO.

last year while we were still under debt management this figure for her loan had been reduced to £2,500, but somewhere over the last 4 months, £3,000 worth of interest seems to have gone on, meaning that she apparently has paid nothing off her loan since she took it out 2 years ago. she is really worried they will magic up some more interest to put on before her order can go through. if this happens can she contest this?

When people come to me to have the DRO submitted i ask them to ring the creditors that morning to get the most up to date balance (not settlement figure) over the phone so i can check the balances are under £15000. It is the balances on the day of submission that count. I would get your wife to ring the company currently writing to her regarding the debt to find out the balance.

scarlet55

well ive been to the cab to see the dro adviser and although the application hasn't gone in yet im on my way....she checked everything out and we did a proper soa and she has given me my barcode (which ive already paid lol ) its being put through next wednesday morning and she said there shouldnt be any problem with it...i have to say she was absolutely fantastic, it was like talking to a friend and we even had a few laughs, especially when i started talking about soa, and lbms..she just didnt know what they meant when they were abbreviated, and she just couldnt get over the lbm, she said she couldnt wait to get back to the office to tell every-one about it, lol...i told her to look onto this site and she'd see a few more...anyway just thought id update every-one and just to say iff ur thinking about it then just do it, and orville....didnt need the clean undies lol:beer:

scarlet55

one more thing, ive read a lot of posts on here about social funds going on the dro but the dwp still deducts them...i mentioned this to my adviser and she said as soon as the dro goes thru then they have to stop deducting the money from ur benefit...in one respect i wish social fund loans didnt have to be included on a dro cuz i cant see them ever giving me another one now.

Orville

scarlet55 wrote: »

well ive been to the cab to see the dro adviser and although the application hasn't gone in yet im on my way....she checked everything out and we did a proper soa and she has given me my barcode (which ive already paid lol ) its being put through next wednesday morning and she said there shouldnt be any problem with it...i have to say she was absolutely fantastic, it was like talking to a friend and we even had a few laughs, especially when i started talking about soa, and lbms..she just didnt know what they meant when they were abbreviated, and she just couldnt get over the lbm, she said she couldnt wait to get back to the office to tell every-one about it, lol...i told her to look onto this site and she'd see a few more...anyway just thought id update every-one and just to say iff ur thinking about it then just do it, and orville....didnt need the clean undies lol:beer:

Hey i didn't think you would.

The CAB are great and immediately put you at ease (that was my experience anyway). The process really is quite simple.

I was suprised you said she isn't doing it untill next Wednesday though, is there a reason for that?. I suspect it is because of the sheer numbers of people they are helping and it takes roughly 45 minutes to enter it onto the system. But hey ho by next Thursday it should all be hopefully over for you

Orville

scarlet55 wrote: »

one more thing, ive read a lot of posts on here about social funds going on the dro but the dwp still deducts them...i mentioned this to my adviser and she said as soon as the dro goes thru then they have to stop deducting the money from ur benefit...in one respect i wish social fund loans didnt have to be included on a dro cuz i cant see them ever giving me another one now.

I have to be honest i didn't know social fund loans could be included, i would have thought that as it's money owed to the goverment you would still be liable to pay it back, much as you do with court fines etc...