Debt Relief Orders (DRO) - Information & help thread

fatbelly

caz2003uk wrote: »

I have just checked the IS register this morning, and I am so relieved to see my name on it

Thank u sooo much to everyone on here who has put up with me and my worries and questions, you have all been a great help!

My case has been going since january, its taken 9 months and my application process was much more long winded than any I have read here! So I'm glad that anyone who has the same nightmare as me can see that you will get in their end!

So so pleased!!!!

Well done. Your creditors are allowed to write to you during the morotorium period but not to ask for, or suggest you make, payment to them. As Orville says, keep giving them your DRO number until it's clear they've got the message!

broken_spirit

Hiya, sorry can you just refresh my memory........are u currently subject 2 a DRO? If so & those were the figures u submitted 2 the IS I can't see any of it been a problem. If not your water bill seems high......are u on a metre?......perhaps reduce your sky costs......TV licence....have u recently started paying that monthly?...If so after 6mths that will reduce 2 £13 p mth. Do u not pay anything for contents insurance?

scarlet55

FireyFaerie wrote: »

I am still being hassled by the ex mil about paying her back. I am considering sending her my income and expenditure to show I have no spare cash. I just wondered if someone would be able to see if I have missed anything and if it is "allowed" amount?
Also by "kids" I mean taking them to playgroup, buying clothes and essentials when needed etc. Thanks.

Income Monthly Outgoing Monthly



Child Benefit 143 Sky 40
Tax Credit 454 Water 40
Housing Benefit 429 Gas 30
Income Support 88 Electric 30
Rent 500
Food 350 (for 1 adult and 2 kids including nappies and wipes etc)
Tv License 20
Travel 30
Phone 30
Kids 30

Total Incoming 1114 Total Outgoing 1100

Left 14

you dont need to send ur ex MIL anything...she must know now ur a single parent u dont have any spare cash..tell her to get it off her son or tell her to go take a hike..:D

fatbelly

scarlet55 wrote: »

you dont need to send ur ex MIL anything...she must know now ur a single parent u dont have any spare cash..tell her to get it off her son or tell her to go take a hike..:D

Yep- we've covered this previously

I think you should tell her that you were grateful for her help, but that this was a gift, not a loan, and if it had been a loan, it would have been on the DRO with liability discharged in Feb.

TONY616

Hello and apologies if I’m simply raking over old ground with my questions, but I’m nearing the end of my tether and could really do with some advice.


I’m £14,529 in debt owing:
£10,128 to Natwest between Credit card, loan and overdraft.
£2809.76 to Satander cards
£959.71 to Virgin /MBNA Cards
£631.69 to Tesco Cards

I lost my job early in 2010 and spent nearly 12 months fighting to find work again.
I kept up payments for as long as I could through selling everything I owned, but finally sought help from CAB in October 2010 who set up token £1 payments to all whilst I looked for work.
The stress of this and unemployment sent me spiralling into severe depression requiring medication and counselling, I had to cancel my wedding and it almost saw the end of my relationship.

I’m now glad to say I’m finally back in work, though being paid far less than previously.
Although I’m earning again, once my living expenses are covered there is very little left to be actually paying debts!

My outgoings a month come to:

Expense Per Month

Rent (Incl utilities & Insurances) £750.00

House Keeping (Food, toiletries, cleaning) £130.00

Meals at work £36.00

Clothing £20.00

Hairdressing £11.00

Pets £23.00

Telephone (Mobile and internet) £50.00

Public Transport (Monthly Travel Card) £187.00

Dental / Optical £14.00

Medical £8.00

Leisure £15.00

Sundries / Emergency £11.00

Newspaper / Magazines £5.00


Total per month £1,260.00

Net Pay per month £1,284.00

Left over for debt payments £24.00



I have no assets (as explained above) and live with my girlfriend and her son who currently bear the brunt of the bills.

MBNA have now decided they want to call in the debt and have sent me a letter basically saying they are making their mind up what to do. And that I should make them an offer or they will pass the debt on.

The CAB are being incredibly unhelpful, I’m assuming this is because of the enormous pressure they’re under at the minute, and I just don’t what to do.
My credit record is already next to useless for the next 6 years, I certainly won’t be looking for credit and my situation looks extremely unlikely to change in the next 12 months.

Do you think a DRO is an option for me?

Thank you in advance for any help and advice.

broken_spirit

TONY616 wrote: »

Hello and apologies if I’m simply raking over old ground with my questions, but I’m nearing the end of my tether and could really do with some advice.


I’m £14,529 in debt owing:
£10,128 to Natwest between Credit card, loan and overdraft.
£2809.76 to Satander cards
£959.71 to Virgin /MBNA Cards
£631.69 to Tesco Cards

I lost my job early in 2010 and spent nearly 12 months fighting to find work again.
I kept up payments for as long as I could through selling everything I owned, but finally sought help from CAB in October 2010 who set up token £1 payments to all whilst I looked for work.
The stress of this and unemployment sent me spiralling into severe depression requiring medication and counselling, I had to cancel my wedding and it almost saw the end of my relationship.

I’m now glad to say I’m finally back in work, though being paid far less than previously.
Although I’m earning again, once my living expenses are covered there is very little left to be actually paying debts!

My outgoings a month come to:

Expense Per Month

Rent (Incl utilities & Insurances) £750.00

House Keeping (Food, toiletries, cleaning) £130.00

Meals at work £36.00

Clothing £20.00

Hairdressing £11.00

Pets £23.00

Telephone (Mobile and internet) £50.00

Public Transport (Monthly Travel Card) £187.00

Dental / Optical £14.00

Medical £8.00

Leisure £15.00

Sundries / Emergency £11.00

Newspaper / Magazines £5.00


Total per month £1,260.00

Net Pay per month £1,284.00

Left over for debt payments £24.00



I have no assets (as explained above) and live with my girlfriend and her son who currently bear the brunt of the bills.

MBNA have now decided they want to call in the debt and have sent me a letter basically saying they are making their mind up what to do. And that I should make them an offer or they will pass the debt on.

The CAB are being incredibly unhelpful, I’m assuming this is because of the enormous pressure they’re under at the minute, and I just don’t what to do.
My credit record is already next to useless for the next 6 years, I certainly won’t be looking for credit and my situation looks extremely unlikely to change in the next 12 months.

Do you think a DRO is an option for me?

Thank you in advance for any help and advice.

Hi, you really need 2 seek advice from another debt charity if you feel that you're not getting the help you require through your local CAB. Try National Debtline 0808 808 4000 or the Consumer Credit Counselling Service 0800 138 1111. It's imperative you do this a.s.a.p, as you are fast approaching the 15K threshold. Remember that if MBNA have decided that they are not happy with your current arrangement & restart the interest charges etc...it could rapidly increase your total debt amount & if that becomes the case it may be that bankruptcy is your next option. Have you actually asked CAB about applying 4 a DRO?
They will be better able 2 tell you if a DRO is a viable option 4 you. Please seek advice as soon as you possibly can, I'm currently subject 2 a DRO myself & it did take a considerable length of time from first speaking 2 NDL 2 my application actually been submitted. I'm sure 1 of the experts on here will be able 2 advise you further, but good luck with everything. Please let us know how you get on

jamesd

Given the low surplus income a DRO does look like a sensible option. Without one you may well have negative credit record entries for the next six years anyway. But before doing it please do contact CCCS or one of the other free debt management places to get their recommendation.

Phone and per expenses look like the main areas where some more could be found but even eliminating both of those won't really be sufficient to get you to a solution that is better than a DRO, I think.

adarajames

Hello all

Am considering applying for a DRO - history is, having been off sick since uni 15 years ago, debts have built up; mostly to cover the cost of living, moving into own (rented but as opposed to family) place and having to furnish it etc and so on, and have got to the stage where all my benefits are going to pay the interest on my debts but not the debts themselves, leaving me very little to live on, even my DLA which is meant to pay for my extra costs due to disability (own car as can't walk for public transport etc, extra heating due to mobility issues and such) is going on interst payments. The stress and worry also doesn't help my health either!

Having read many sites and advice pages, have worked out this might be the only way to sort my situation out, (am fighting the urge to hide under the pillows and ignore things as that's the most stupid option, but so much information and such is difficult to take in, especially with my disability making it hard for me to concentrate for any length of time) but want to just check a couple of worries:

• The only income I have is from benefits, so am assuming my income is within the limits allowed for DRO?

• My current car is worth less than £1000 so understand that will be ok, but if I get my benefits back to use them for their intended purpose rather than debts, I may need to upgarde my car at some point in the future, am I allowed to do this during the 6 years that the DRO is still on my record if needs be?

• Also, the only investment I have is a gift of a £100 in premium bonds. Will I have to cash this in to pay creditors, or would I be allowed to keep this? My bank accounts are all 0 or at the limit of the overdraft facilities, so there really isn't any other asset I have as far as I can work out

• Also it says that home items aren't taken into account, does this include computers? I'd be devestated to lose mine as its the only contact I have with the outside world at times when my health is particulalry bad

Hope someone can help, and will try and contact the CCCS people once I have got these worries out the way

Thanks very much

Orville

adarajames wrote: »

Hello all

Am considering applying for a DRO - history is, having been off sick since uni 15 years ago, debts have built up; mostly to cover the cost of living, moving into own (rented but as opposed to family) place and having to furnish it etc and so on, and have got to the stage where all my benefits are going to pay the interest on my debts but not the debts themselves, leaving me very little to live on, even my DLA which is meant to pay for my extra costs due to disability (own car as can't walk for public transport etc, extra heating due to mobility issues and such) is going on interst payments. The stress and worry also doesn't help my health either!

Having read many sites and advice pages, have worked out this might be the only way to sort my situation out, (am fighting the urge to hide under the pillows and ignore things as that's the most stupid option, but so much information and such is difficult to take in, especially with my disability making it hard for me to concentrate for any length of time) but want to just check a couple of worries:

• The only income I have is from benefits, so am assuming my income is within the limits allowed for DRO? As far as i am aware there are no income limits. What matters is the surplus cash you have left over after your living expences have been worked out. (less then £50 a month).

• My current car is worth less than £1000 so understand that will be ok, but if I get my benefits back to use them for their intended purpose rather than debts, I may need to upgarde my car at some point in the future, am I allowed to do this during the 6 years that the DRO is still on my record if needs be? You could upgrade your car to one over 1k after the year your DRO is inforce has ended. The DRO itself only lasts for a year. Your credit file however is affected for the six years. I wouldn't upgrade till after that year.

• Also, the only investment I have is a gift of a £100 in premium bonds. Will I have to cash this in to pay creditors, or would I be allowed to keep this? My bank accounts are all 0 or at the limit of the overdraft facilities, so there really isn't any other asset I have as far as I can work out I am not sure of the answer to that to be honest, but as it is under £300 my guess is that you would be fine.

• Also it says that home items aren't taken into account, does this include computers? I'd be devestated to lose mine as its the only contact I have with the outside world at times when my health is particulalry bad I kept mine, and the PS3 etc, so i wouldn't worry on that one.

• Hope someone can help, and will try and contact the CCCS people once I have got these worries out the way

Thanks very much

See above...............

wba31

Orville wrote: »

• The only income I have is from benefits, so am assuming my income is within the limits allowed for DRO? As far as i am aware there are no income limits. What matters is the surplus cash you have left over after your living expences have been worked out. (less then £50 a month). It is very unlikely with benefit income only that your surplus is more than £50. prepare your budget and discuss it with an advisor (you mention CCCS) and I am 99% sure it will be fine

• My current car is worth less than £1000 so understand that will be ok, but if I get my benefits back to use them for their intended purpose rather than debts, I may need to upgarde my car at some point in the future, am I allowed to do this during the 6 years that the DRO is still on my record if needs be? You could upgrade your car to one over 1k after the year your DRO is inforce has ended. The DRO itself only lasts for a year. Your credit file however is affected for the six years. I wouldn't upgrade till after that year. The DRO restrictions are only in place for the 1 year of the DRO. It is on your credit report for 6 years, as everything is! so as Orville said, you can change your car in the 12 months for one worth less than £1000 (however i would avoid if possible as the Insolvency Service will want to know where you got the money from, and if you paid by installments they would revoke the order if you paid more than £50 a month) however once the DRO has ended you can get a car worth any value

• Also, the only investment I have is a gift of a £100 in premium bonds. Will I have to cash this in to pay creditors, or would I be allowed to keep this? My bank accounts are all 0 or at the limit of the overdraft facilities, so there really isn't any other asset I have as far as I can work out I am not sure of the answer to that to be honest, but as it is under £300 my guess is that you would be fine. Orville is right, the asset is worth less than £100 so you must list it on the forms, however it will not be taken. However aren't premium bonds entered into a prize draw thing? if you won, that would become an asset revoking your DRO, however win enough to pay your debts off and you wont care right? not sure how the premium bonds work fully. If you wanted rid of the bonds to remove the hassle, what you sell them for must be split pro rata between all of your creditors

• Also it says that home items aren't taken into account, does this include computers? I'd be devestated to lose mine as its the only contact I have with the outside world at times when my health is particulalry bad I kept mine, and the PS3 etc, so i wouldn't worry on that one. Unless you own a super computer that you could sell second hand for £300 or more it should be fine. With the DRO, any assets are totted up for value, nothing is ever taken, that only occurs in bankruptcy, and this is not bankruptcy. So if your assets are under £300, no problem, always remember, nothing is taken off you

• Hope someone can help, and will try and contact the CCCS people once I have got these worries out the way

Added my 50 pence worth in red...