Debt Relief Orders (DRO) - Information & help thread

hanstar

ive read through the information on dros but couldnt find the answers to a few questions i have, so maybe someone on here could shed some light for me?
sorry they might be obvious!!

at the moment me and my partner are unemployed and meet all the criteria for a dro but if we got a dro and then my partner found a job would we be expected to start paying our creditors again (before the 12 months is up)?
and if not and we got to the end of the 12 month plan would we then have to start paying creditors, even if we were on minimum wage and still struggling - because we would be in a better situation than when we started the dro but still not earning much more than benefits.

at the moment me and my partner owe 1200 and are just paying £1 a month token payment (set up by citizens advice) so this would be great for us but if my partner found a job it would be horrible if the creditors would be hounding us again straight away.
it would be great if we had the year to save up money so at the end of the year we can try and get creditors to accept a reduced final fee settlement.

thanks hanstar

fatbelly

hanstar wrote: »

at the moment me and my partner are unemployed and meet all the criteria for a dro but if we got a dro and then my partner found a job would we be expected to start paying our creditors again (before the 12 months is up)?
and if not and we got to the end of the 12 month plan would we then have to start paying creditors, even if we were on minimum wage and still struggling - because we would be in a better situation than when we started the dro but still not earning much more than benefits.

DROs are set up individually. No payments are required to the creditors - just the £90 application fee to the OR. Then your debts are wiped at the end of the (usually 12 month) morotorium period.

If your income increases during the morotorium period to the point where your surplus income becomes greater than £50 per month, then the order is revoked and the £90 not returned. Your debts become active again.

hanstar wrote: »

at the moment me and my partner owe 1200 and are just paying £1 a month token payment (set up by citizens advice) so this would be great for us but if my partner found a job it would be horrible if the creditors would be hounding us again straight away.
it would be great if we had the year to save up money so at the end of the year we can try and get creditors to accept a reduced final fee settlement.

Presumably CAB did not push DROs to you because they view it as a 'sledgehammer to crack a nut' and likely to be a waste of £90 in your case.

Your plan sounds sensible - Keep paying the £1 per month, try to save on the side and start to make offers in full & final settlement when you can offer 30%.

hanstar

thanks for that fat belly, i thought that was probably the case but wasnt 100% sure.
i think dros are one of those things that seem good in writing but wont actually help much in the long run. And the problem is it could easily make people want to stay in a bad situation - ie not find a job so the debts are wiped after the year. if getting a job means the creditors will be allowed to chase you for their debt and you loose the £90 fee it doesnt really give you much incentive to get a job if that makes sense.
anyway ive got an appointment with the cab on thurs so i will find out if i am eligable and see what they say about it all. i think reduced fee settlement are my best bet, if i can keep the creditors of my back long enough to save some money.

debt_doctor

blind-as-a-bat wrote: »

Not sure what the training manual for intermediatories says on the issue, it would be intresting to know, if it says anything at all on the matter:rolleyes:

Well, would you believe it, the intermediaries guidance doesn't mention it at all !:rolleyes:

DD

CCCS_Alan

Widelats wrote: »

From the minute you pay your £90 and filled the forms in, how long does it take to get the order active?

Hi Widelats

Once the fee has been paid and the electronic application received an application should be considered within 48 hours of receivership (probably meaning 2 working days). At this point the DRO will either be agreed, refused or a request for further information made to the applicant. Once the DRO is agreed it is the OR who will enter this onto the Insolvency Register at which point the moratorium period will come into force.

Hope this helps

Regards

CCCS_Alan

graeme_was_here

Hi i'm new to the forum so hi everyone.

I am considering applying for a DRO as i am burdened with debt and my income is not enough to cover it. unless the creditors inq uestion are willing to accept token payments which i did offer and was refused several times.

The part of the DRO that confuses me is the assets part. The parts i need clearing is the following.

I have being given a playstation 3 as a gift would this count as a asset if so should i sell it off first to try and give money to my creditors.
Also i have a laptop which i need for my studies could i keep the laptop as i need it for my studying i would be willing to surrender my PS3 as it's just a item but not my laptop.
With this in mind if i went for a DRO would i be able to keep my laptop. any info would be great.

Thnaks

Widelats

CCCS_Alan wrote: »

Hi Widelats

Once the fee has been paid and the electronic application received an application should be considered within 48 hours of receivership (probably meaning 2 working days). At this point the DRO will either be agreed, refused or a request for further information made to the applicant. Once the DRO is agreed it is the OR who will enter this onto the Insolvency Register at which point the moratorium period will come into force.

Hope this helps

Regards

CCCS_Alan

Great, thanks mate.

CCCS_Alan

ccvictim wrote: »

about 20k !

Hi Ccvictim

If the value of your car was 20k and you were looking at a DRO so your debts would be under 15k, you could sell your car and offer full & final payments to clear the debts, and use the remaining money to buy another vehicle to use. This would leave you debt free and still with a vehicle.

Regards

CCCS_Alan

Widelats

This will be my case, do you reckon this will get accepted? If they will ask for more info on something, what will it likely be so i can get it sorthed now before my appointment.

Rent £16 per 2 weeks approx
Electric £10 per 2 weeks approx
Food and other household stuff £40 per 2 weeks
Catalogue £60 approx per 2 weeks
Phone £5 per 2 weeks

I get £100 per 2 weeks JSA as the jobcentre are taking £30 per 2 weeks back in social fund loans.

I am in council accomodation, i have no assets at all, i have ordered a laptop and a Xbox 360 in the past, both are paid for now except the laptop, i broke this on moving home it has been binned. I have ordered a netbook which i still have i would sell it. I do not own any vehicles or property, no savings at all.

Would this likely be accepted then? Anyone got some info on this please?? Thanks.

Widelats

Anyone at all???