Debt Relief Orders (DRO) - Information & help thread

ccvictim

how are assets determind? a visit from insolvency service?

louise56489

If a car is on a hire purchase agreement, does this invalidate a DRO claim?

gavinh_2

ccvictim wrote: »

how are assets determind? a visit from insolvency service?

id like to know all details about this too if anyone can help, thanx.

debrag

so I haven't been using my cc's since 2006 when I entered a DMP. So as of next month I am unemployed and can't afford the DMP so I'm thinking of BR or DRO.
How likely are creditor to say I have x amount of assets? also two creditors are DCA's will that be a problem?

I'm concerned about the £50 limit, if i get an hourly job then some months I'd have more income than others.

fatbelly

Assets are declared on the form - I picked the following paragraph out of the notes. For £90 fee you're unlikely to get a visit from anyone.

'Please indicate whether the debtor owns any other assets that have a realisable value by selecting ‘Yes’ or ‘No’ as appropriate. These assets would include items that have a resale value (the total proceeds that the debtor would receive if they sold the goods) that would impact on the overall asset limit, but do not include basic household items such as cutlery, crockery, cookers, televisions, beds or furniture. Therefore assets with a realisable value may include for example shares, stocks, premium bonds, antiquities, or collections etc. '

fatbelly

dottywot wrote: »

Will my employer know if i obtain a dro, also will i need to change bank account - debt not withcurrent bank and only have basic account. Any one no the answer to my questions?

Although the OR requires the following information

· The name of their employer
· Their job title
· Their occupation from the drop down list, which best describes their role.
· The date on which they commenced employment with the employer
· Their employer’s name and address

I don't think your employer will be informed. (I admit I am not 100% certain on this so if anyone can confirm...)

You will probably be OK to continue with your bank account but see below:

Intermediaries should also advise debtors that they must make their own arrangements in respect of the operation of any bank accounts following the approval of their DRO application. If a DRO is granted, a debtor’s bank account will not necessarily be frozen. It will be for the bank or building society to decide whether or not to allow the debtor to continue operating the account. Although it is a matter of public record, the Insolvency Service will not be contacting a bank or building society unless they are a creditor. Intermediaries should advise debtors that their bank accounts may be affected by the making of a DRO, however this will be determined by the policies operated by the said financial institutions. Applicants should also be reminded that any monies in the account on application for a DRO will be considered as contributing towards the total level of assets after deduction of normal living expenses.

fermi

fatbelly wrote: »

I don't think your employer will be informed. (I admit I am not 100% certain on this so if anyone can confirm...)

I can't see why they would be. They are not routinely informed in full bankruptcy after all.

Widelats

Anyone know about this small rule i found? It says if i have sold anything in the last 2 years for less than its value i could have my order refused - does this mean a private sale like on eBay and such? Coz if it does i will have to withhold any sale info from them i bet most people would have to as well.

If it does not mean private sales anyone have a idea what it means by it??

gavinh_2

fatbelly wrote: »

Assets are declared on the form - I picked the following paragraph out of the notes. For £90 fee you're unlikely to get a visit from anyone.

'Please indicate whether the debtor owns any other assets that have a realisable value by selecting ‘Yes’ or ‘No’ as appropriate. These assets would include items that have a resale value (the total proceeds that the debtor would receive if they sold the goods) that would impact on the overall asset limit, but do not include basic household items such as cutlery, crockery, cookers, televisions, beds or furniture. Therefore assets with a realisable value may include for example shares, stocks, premium bonds, antiquities, or collections etc. '

thanks for that. at the end it mentions collections. im guessing a cd/dvd collection would be includable as an "asset" then? also i think it sounds like a home pc wouldnt come under basic household items either, so also an asset?
has anyone been through a debt relief order on here that could answer these, and more questions? would be much appreciated!

JCS1

There's a post on the BR board all about DRO's too. Think to watch out for is if you have a pension - if value if over £300 then it's considered an asset and you can't go down the DRO route. It was a late amendment that only came to light a few days after DRO's started.

Strangely, HMRC approved pension's are exempt from BR, just not DRO's :rolleyes: