Debt Relief Orders (DRO) - Information & help thread

wba31

summerstreetallotments wrote: »

I think that maybe a D.R.O. is too drastic as you don't owe all that much...dont worry about it, wait until you see the C.A.B. person..or , if you want to have a look at the alternatives go onto C.C.C.s and do a debt remedy , it is free and will show you onscreen what is right for you, you may get more than one option re. how to get ion top of al this.

With the OP only in a position to offer £1 a month to each creditor, i dont understand how the DRO is too drastic? paying the debt off over the next 100 years seems drastic to me...

wba31

dannyb0yuk wrote: »

Hi to anyone reading! I appreciate my newbie status (through lack of posts as opposed to age of account), but I hope I can ask a quick question regarding DROs.

I'm about to apply for one and I'm currently on Income Support as I'm signed off from working on medical grounds. I'm hoping to be back to work inside of a year (before the year's end if possible) and I'm wondering how things tend to work if I do? I've read that if my circumstances improve, the DRO will be ended (is that right) and I'll be expected to start repaying my creditors.

If this is the case, then am I in essence taking a massive whack on my already poor credit record, merely to get my creditors off my back until such a time as I'm working again? I'm a little uncertain as to how this all works, and while I'm at present not in a position to offer my creditors any reasonable amount, I presume I would be when I return to work (full-time). I imagine I'll only be in the running for low-income jobs initially, I intend to start career building a bit further down the line once I'm back into the swing of working life.

Any information that someone could offer would be greatly appreciated, as I don't necessarily want to go through with it if it's going to have such a detrimental effect, only to then put me back where I am now when I have slightly more money coming in!!!

It depends on how much you will be earning when you work again. As Scarlet already said, If your income increases, chances are your expenditure will too, and if the surplus is kept under £50 the DRO will carry on.

If you are going to be getting a good wage, thus exceeding the £50 level, yes, the DRO will be revoked. However this isnt such a bad thing. Whether you enter the DRO or not, unless you meet all minimum payments your credit file will be affected by the creditors noting missed payments etc etc, and everything comes off the credit file after 6 years, so whether it's DRO or creditor marks, it's all 6 years.

Important thing to note is that the creditors cannot take further action against you during a DRO, so even if it is for a 9 month break for example, the DRO could still do you a favour...

Smart_Mart

Just had my initial phone conversation with the CCCS who have booked me a counsellor's interview for this Friday, 1st July at 9am. I've started on the long road and hopefully will feel better after the phone call!

scarlet55

Smart_Mart wrote: »

Just had my initial phone conversation with the CCCS who have booked me a counsellor's interview for this Friday, 1st July at 9am. I've started on the long road and hopefully will feel better after the phone call!

well done mart....:T:T

MoneySpendingEejit

scarlet55 wrote: »

hiya danny......iff you earn a good wage then there is a chance that your dro could be revoked, but on the other hand iff you start work then your expenditure will increase...ie, you will no longer get housing or council tax benefit....plus you will have busfares and packed lunches to pay for...as long as you are still under the £50 when everything has been paid you will be fine.....but iff it does get revoked, not only will your debts be back but also any interest that will have accrued...you will have to weigh up all the pro's and con's....hope this helps....:)

wba31 wrote: »

It depends on how much you will be earning when you work again. As Scarlet already said, If your income increases, chances are your expenditure will too, and if the surplus is kept under £50 the DRO will carry on.

If you are going to be getting a good wage, thus exceeding the £50 level, yes, the DRO will be revoked. However this isnt such a bad thing. Whether you enter the DRO or not, unless you meet all minimum payments your credit file will be affected by the creditors noting missed payments etc etc, and everything comes off the credit file after 6 years, so whether it's DRO or creditor marks, it's all 6 years.

Important thing to note is that the creditors cannot take further action against you during a DRO, so even if it is for a 9 month break for example, the DRO could still do you a favour...

Thanks for the replies guys. It is likely that at some point in the next year, I will be offered my old job back as I've remained friends with my previous employer. The job would be minimum wage or barely above, and only about 30 hours a week- but it seems that with all the benefits that are chucked at you when you return to work, my DRO might end up being revoked. For instance, using my council's benefit calculator, it seems they'll still pay £75 a week of my rent via Housing Benefit. I would also get the 'Return to Work' credit, which is apparently £40 a week on top of your wages for 52 weeks? And on top of that, apparently I'd get Working Tax Credits, which would (unless I've used the calculator for that wrongly, and I strongly suspect I have) also amount to around £40 per week!! Does that sound about right?

scarlet55

dannyb0yuk wrote: »

Thanks for the replies guys. It is likely that at some point in the next year, I will be offered my old job back as I've remained friends with my previous employer. The job would be minimum wage or barely above, and only about 30 hours a week- but it seems that with all the benefits that are chucked at you when you return to work, my DRO might end up being revoked. For instance, using my council's benefit calculator, it seems they'll still pay £75 a week of my rent via Housing Benefit. I would also get the 'Return to Work' credit, which is apparently £40 a week on top of your wages for 52 weeks? And on top of that, apparently I'd get Working Tax Credits, which would (unless I've used the calculator for that wrongly, and I strongly suspect I have) also amount to around £40 per week!! Does that sound about right?

not sure on the wtc danny....you need to sit down and work out how much roughly you will be earning after tax and insurance.....add on what benefits you would get and then do a soa...put down realistic figures for housekeeping....not what you are living on now, in debt, but what you should be living on.........wait for wba, fatbelly or immoral to come on....they are the experts in these matters...:)

wba31

scarlet55 wrote: »

not sure on the wtc danny....you need to sit down and work out how much roughly you will be earning after tax and insurance.....add on what benefits you would get and then do a soa...put down realistic figures for housekeeping....not what you are living on now, in debt, but what you should be living on.........wait for wba, fatbelly or immoral to come on....they are the experts in these matters...:)

If your take home pay is such that you receive supporting benefits such as council tax benefit and housing benefit, any advisor worth their salt should be able to help you make a realistic budget that would fit for a DRO, im sure...

MoneySpendingEejit

wba31 wrote: »

If your take home pay is such that you receive supporting benefits such as council tax benefit and housing benefit, any advisor worth their salt should be able to help you make a realistic budget that would fit for a DRO, im sure...

I believe I'd be paying my Council Tax benefit in full, it's just Housing Benefit support I'd be getting. I'll have to sit down and do some sums, I think. I just have a tough time working out exactly what I'm going to be getting! Saying that though, I'm missing quite a few essentials from my SOA, purely due to there not being room in my budget for them (clothing, for one), so I ought to be able to balance things up. I only have a budget of £30 a week for food too, and that realistically needs to be higher, methinks.

As far as my advisor, I'm seeing a solicitors I was referred to by my local CAB.

fatbelly

dannyb0yuk wrote: »

As far as my advisor, I'm seeing a solicitors I was referred to by my local CAB.

And can the solicitor do DROs???

P.S. For a single person, my starting point would be £35 per week for food, £5 for clothes. I'd happily move upwards from that if need be.

broken_spirit

fatbelly wrote: »

And can the solicitor do DROs???

P.S. For a single person, my starting point would be £35 per week for food, £5 for clothes. I'd happily move upwards from that if need be.

Hi, I was also referred 2 a solicitor by my local CAB as they didn't have the resources 2 deal with any more applications. I chose not 2 proceed with them as I was informed that I would have 2 go 2 court myself & the application was 2 be made there. I chose 2 go with NDL & I'm now well in2 my 12th week of waiting 4 my application 2 go thru. In a way I wish I'd gone with the solicitor & swallowed my pride at court cos at least it would all be over & done with..........apparently it's a fairly quick process if u choose that route