Debt Relief Orders (DRO) - Information & help thread

caz2003uk

RainbowDreamer wrote: »

Hello. I wondered if being subject to a DRO (or once the 12 months has passed).. if this would effect applying to certain jobs?
I am looking into doing a book keeping and accountancy course. But just wondered if being subject to a DRO would effect me being able to apply for that type of role?
Obviously it's to do with managing money, and a DRO will show me to be back at managing money. Would they dismiss an application or not take on someone as an employee for this reason?

I dont know the answer to this, but what I do know regarding jobs working in a bank etc as part of your application a credit check is made....so it might do?

caz2003uk

dpiddy wrote: »

Hi,

Do you need to show your bank statements to anyone when applying for a DRO? Some family members have been helping me out financially, nothing major but if included it would take me over the £50 a month you're allowed.

Also when you get together all your current statements, by the time the DRO gets approved the amounts will have changed as they're adding interest etc, how does that work? Does the current debt at the time it get approved just get wiped out, regardless how much it is?

Thanks!

Are you in receipt of any benefits?

When my DRO was done, I was given a list of things I needed to take to my final interview before the application was made. This list included bank statements, to see what my balance was at. I asked if my bank accounts would be looked at, she explained that the only reason my bank account statements would have been needed would be for proof of how much received on benefits as you dont get a "pay slip" for benefits so this is mainly for proof of income!

Be aware though that receiving money from family/friends is...an income of sorts...in my opinion so i would have thought you would have to declare that? Im sure one of the experts will be along to confirm or deny this soon!

Regarding amounts for the DRO, the application is made and "normally" approved within 24-48 hours so the amounts should be as correct as can be. Your advisor should be able to answer these questions, and also about this last question....

caz2003uk

thepup wrote: »

I recently had to sell a bunch of computers in order to make the rent and this month's minimum payments.

If I apply for a DRO would the above be classed as disposal of assets and therefore would the DRO be declined?

The sale of good WAS NOT to make money as such but to keep us afloat for another month.

Dont know what we are going to do come next month.

Were the assets over 300?

fatbelly

thepup wrote: »

I recently had to sell a bunch of computers in order to make the rent and this month's minimum payments.

If I apply for a DRO would the above be classed as disposal of assets and therefore would the DRO be declined?

The sale of good WAS NOT to make money as such but to keep us afloat for another month.

Dont know what we are going to do come next month.

I think WBA dealt with this some time ago - you'll be fine

https://forums.moneysavingexpert.com/discussion/comment/47245169#Comment_47245169

tania6567

Hi
Could somebody please give me some advice I am recently seperated from my husband, I have quit my job as I have a 4 year old daughter and she needs a parent around.
I have signed the deeds of our house over to my husband as he is paying the mortgage and living there.
The house has a secured loan attached to it which equates to the amount of equity in the house, this is why I signed it over as there is no value and he is in a better situation than me and theres no point in both of us loosing it!
I have about 10k of debt and I am currently on income support, I am trying to find a way to get myself above water but I have been told I don't have enough income for a Debt management plan or IVA, I have been informed that a DRO maybe my solution but after reading the facts I am concerned that because I signed the house over to my ex Husband it may be looked at as fraud! Is this true??? |I don't know what else I can do

Little_miss_skint

I'm also looking for advice. Sorry if this has already been covered, I was reading up on this for hours last night and have only just found out about a DRO.

Can I get a DRO if I've moved and ignored my debts for the past few months? I know how this sounds, but I had to move due to an abusive ex, it just happened to get me away from the CCJ and bailiff worries for a few months and gave me time to try to figure out how I could start repaying.

Are CCJ's definitely included? I don't know exactly how many I have because of problems with ex. Will a credit report list all of them?

Do they ask for letters? Utility bills etc? I'm asking this because I have a contract with sky for my phone line and internet, but my mum (who doesn't live with me) had it taken out in her name due to my bad credit, although I pay it every month.

I am on benefits at the moment and receiving discretionary housing payment due to financial hardship - this is only awarded for 3 months and I have 2 months left. As it stands I pay 40 per month on top of housing benefit, but without the discretionary top up it would be £100 per month on top of housing benefit. Would that be taken into consideration?

Thanks in advance if somebody can help.

Hopefully nobody will judge me harshly, there's a lot more to this story. As to why I got in to debt and why I'm on benefits.

immoral_angeluk

Little_miss_skint wrote: »

I'm also looking for advice. Sorry if this has already been covered, I was reading up on this for hours last night and have only just found out about a DRO.

Can I get a DRO if I've moved and ignored my debts for the past few months? I know how this sounds, but I had to move due to an abusive ex, it just happened to get me away from the CCJ and bailiff worries for a few months and gave me time to try to figure out how I could start repaying.

Are CCJ's definitely included? I don't know exactly how many I have because of problems with ex. Will a credit report list all of them?

Do they ask for letters? Utility bills etc? I'm asking this because I have a contract with sky for my phone line and internet, but my mum (who doesn't live with me) had it taken out in her name due to my bad credit, although I pay it every month.

I am on benefits at the moment and receiving discretionary housing payment due to financial hardship - this is only awarded for 3 months and I have 2 months left. As it stands I pay 40 per month on top of housing benefit, but without the discretionary top up it would be £100 per month on top of housing benefit. Would that be taken into consideration?

Thanks in advance if somebody can help.

Hopefully nobody will judge me harshly, there's a lot more to this story. As to why I got in to debt and why I'm on benefits.

You would need to be able to give your Intermediary the information when they helped you with your application, but there are ways of tracking down debts if you have a vague idea of who you own money to.

CCJs are included yes, but credit reports don't show everything, so you may need to spend some time tracing your debts with your intermediary to ensure you've covered all bases.

The discretionary housing payment would only be taken into account if you made an application while it was still running, and you'd just need to tell them when it stopped.

fatbelly

Little_miss_skint wrote: »

Can I get a DRO if I've moved and ignored my debts for the past few months? I know how this sounds, but I had to move due to an abusive ex, it just happened to get me away from the CCJ and bailiff worries for a few months and gave me time to try to figure out how I could start repaying.

Are CCJ's definitely included? I don't know exactly how many I have because of problems with ex. Will a credit report list all of them?

Do they ask for letters? Utility bills etc? I'm asking this because I have a contract with sky for my phone line and internet, but my mum (who doesn't live with me) had it taken out in her name due to my bad credit, although I pay it every month.

I am on benefits at the moment and receiving discretionary housing payment due to financial hardship - this is only awarded for 3 months and I have 2 months left. As it stands I pay 40 per month on top of housing benefit, but without the discretionary top up it would be £100 per month on top of housing benefit. Would that be taken into consideration?

Hi

It sounds like you would qualify for a DRO provided you meet the criteria of (1) debts under 15k, (2) surplus income under £50 per month and (3) no significant assets - any car valued under £1000.

Moving isn't a problem in itself but if you're not on the electoral roll then getting your Experian report may involve evidencing where you are now. If you require your address to be withheld from the insolvency register then that is more of a problem for your Intermediary but its possible.

ccjs must be included and an experian report will show those granted in the past six years. Do you have older ones?

The sky contract will be your mum's debt if it is not paid. I would be happy to allow an allowance for the phone element in your expenditure statement but Sky programmes themselves are not an allowable expense. Hopefully you've got their free broadband and a basic package!

I would ignore the DHP as we'd probly struggle to get to the point of submission in 2 months anyway.

HTH

fb (Good morning IA - beat me to it again):)

immoral_angeluk

tania6567 wrote: »

Hi
Could somebody please give me some advice I am recently seperated from my husband, I have quit my job as I have a 4 year old daughter and she needs a parent around.
I have signed the deeds of our house over to my husband as he is paying the mortgage and living there.
The house has a secured loan attached to it which equates to the amount of equity in the house, this is why I signed it over as there is no value and he is in a better situation than me and theres no point in both of us loosing it!
I have about 10k of debt and I am currently on income support, I am trying to find a way to get myself above water but I have been told I don't have enough income for a Debt management plan or IVA, I have been informed that a DRO maybe my solution but after reading the facts I am concerned that because I signed the house over to my ex Husband it may be looked at as fraud! Is this true??? |I don't know what else I can do

Are you still on the secured loan/mortgage?
It won't neccesarily be fraud, but it would be a transaction at undervalue (ie you gave away an asset at below market value) and a DRO application may be rejected on that basis.

fatbelly

tania6567 wrote: »

Hi
Could somebody please give me some advice I am recently seperated from my husband, I have quit my job as I have a 4 year old daughter and she needs a parent around.
I have signed the deeds of our house over to my husband as he is paying the mortgage and living there.
The house has a secured loan attached to it which equates to the amount of equity in the house, this is why I signed it over as there is no value and he is in a better situation than me and theres no point in both of us loosing it!
I have about 10k of debt and I am currently on income support, I am trying to find a way to get myself above water but I have been told I don't have enough income for a Debt management plan or IVA, I have been informed that a DRO maybe my solution but after reading the facts I am concerned that because I signed the house over to my ex Husband it may be looked at as fraud! Is this true??? |I don't know what else I can do

As its the gross value of property that counts for a DRO not the net (i.e how much the house is worth, not the equity in it) I think that would be a problem for a DRO. I'd need to look more closely at the rules, which I don't have to hand. I think you'd need a two-year gap.