Debt Relief Orders (DRO) - Information & help thread

wba31

JuicyLou wrote: »

Hi. I had some very helpful advice here when I first applied for my DRO and I'm hoping you can all help me again.

My DRO application was accepted last June, so my year is almost up. The debt is an overdraft of around £1400 owed to Barclays.

My parents have recently offered to give me some money to pay this debt off, but they can't cover the full amount. I would hopefully be able to pay them back when my circumstances improve.

Is it worth offering a smaller amount to Barclays? I do feel responsible for the debt and I know that a DRO would screw up my credit file. It would be lovely to have the debt settled.

On the other hand, my credit file isn't the greatest anyway as I've had a couple of missed payments in the last few years and I have no idea if paying off some of the debt would even stop the DRO.

I also have no idea how much Barclays would be willing to accept, or if they would even take an offer. Has anyone else successfully offered less to their creditors in my position?

Any advice would be very much appreciated. Thanks!

think this has been covered pretty much by Scarlet

the debt is under the DRO, and you are not permitted to make any payments to it. Come June the order will finish, and the debt will be written off.

You can only pay the debt if the DRO is revoked, which will occur if your circumstances change and the changes take you outside of the qualifying criteria for a DRO. the DRO will then still appear on your credit report.

If i were you I'd sit tight and let the DRO deal with this debt, allow your parents to save their money. Your credit report will not be great regardless what you do now

JuicyLou

scarlet55 wrote: »

i dont really understand what you are trying to say....are you saying that you now want to pay off a debt that was included in your dro...you are prohibited from making any payments once your dro has started, and iff your dro ends in june the debt will no longer exist....was the overdraft the only debt that was included...iff not and you attempt to pay off this debt then you will have all your other debts back too...i think you need more advice from one of the experts on here...

Sorry I wasn't clear enough. The overdraft was the only debt included. I don't have any other debts.

I know the debt will be wiped out in June, but I just wondered if it would be better to try to pay something. I think I'm just having guilt over not paying my debts. Also worrying about having a DRO on my credit file screwing my life up.

Thanks for the advice!

wba31

JuicyLou wrote: »

Sorry I wasn't clear enough. The overdraft was the only debt included. I don't have any other debts.

I know the debt will be wiped out in June, but I just wondered if it would be better to try to pay something. I think I'm just having guilt over not paying my debts. Also worrying about having a DRO on my credit file screwing my life up.

Thanks for the advice!

The DRO will be on your credit file for the same time as missed payments/late payments etc through not being up to date with the debt, and all come off after 6 years, so the long term affect for you will be no different

JuicyLou

wba31 wrote: »

The DRO will be on your credit file for the same time as missed payments/late payments etc through not being up to date with the debt, and all come off after 6 years, so the long term affect for you will be no different

Will the DRO be completely removed after 6 years? Or will I still need to mention it when applying for a mortgage etc?

Sorry for all the questions. I'm sure everything was explained to me by my advisor at the CAB, but I have a learning disability and some memory problems, so I'm struggling to keep track of everthing.:o

Orville

JuicyLou wrote: »

Will the DRO be completely removed after 6 years? Or will I still need to mention it when applying for a mortgage etc?

Sorry for all the questions. I'm sure everything was explained to me by my advisor at the CAB, but I have a learning disability and some memory problems, so I'm struggling to keep track of everthing.:o

I am not sure entirely how it works but the DRO actually ends after one year. But because you have had a DRO it affects your credit history for a further six years after the finish date. So in total your credit rating is affected for seven years. You can start to clean up of your credit file after one year. Get a copy of your credit report and make sure the old debts are now not showing etc.

wba31

JuicyLou wrote: »

Will the DRO be completely removed after 6 years? Or will I still need to mention it when applying for a mortgage etc?

Sorry for all the questions. I'm sure everything was explained to me by my advisor at the CAB, but I have a learning disability and some memory problems, so I'm struggling to keep track of everthing.:o

With regards to a mortgage you only have to declare the DRO if the lender asks. At the moment they ask "have you ever been declared bankrupt?" which would not apply to someone doing a DRO.

Even within the 6 year period following your DRO you should find that you can get a good mortgage should you want one, always use a broker, but they can find some good deals

xuxa331

fatbelly wrote: »

if you are still within the 12-month morotorium period, you must let the dro unit know of any change of address, wherever that is.

I am not sure what a task rebate is. Can you explain?

Duh! Tax rebate?

Yes, if it takes your assets over the £300 limit, you must inform the dro unit. It may be best to run this situation through your intermediary if it is over £300 and arrives within the 12-month period.

thank you so much.all the dro limitations are applied to uk law.im in doubt basically if i ask for my tax refund and definatly leave the country??

broken_spirit

:eek::eek: I've just arrived home to 27 letters from my creditors :eek::eek:

:question: Is that a record :question:

Orville

broken_spirit wrote: »

:eek::eek: I've just arrived home to 27 letters from my creditors :eek::eek:

:question: Is that a record :question:

LOL N1, that has got to be a 1st on here. I gather you have been on a short break Broken?. I hope it was ok

broken_spirit

Orville wrote: »

LOL N1, that has got to be a 1st on here. I gather you have been on a short break Broken?. I hope it was ok

No such luck....................I'd just got back from the hospital, post must have come after I left. The postman will be loving me if this carries on ................1 creditor had sent me the same letter 9 times :mad: really have they got nothing better 2 do with their resources? Just let them try charging with 9 x £12 administration charges!