Debt Relief Orders (DRO) - Information & help thread

misspixie_2

Hi guys, my DRO came to an end last month, I didn't hear from anyone so phoned the Insolvency Service and they sent me a letter of courtesy to confirm the DRO was finished. I guess I am just in disbelief that its really all over and still waiting to get the demand letters or calls etc. I do still get a monthly 'statement' from my old bank who were one of the creditors named in the DRO, they debit an amount each month so obviously the amount owed goes up and up but according to the Insolvency Service they can't add to the amount on the DRO (obviously as long as it wasn't anything I had borrowed) so I will ignore the statements.
I think I want some sort of confirmation, a fanfare blazing the words "yes, it's true, you are debt free!"
Anyone else's debt-life come to an end with a DRO?

gspec312

Hi all, i think my DRO should be processed soon hopefully next week. One problem I have is my car has just been written off and im about to receive a cheque for £2000 to cover the original cost of the car and a personal injury. I know this will affect my income, but i will only be buying a new car and paying back the rest of the money to family that I owe. Any help on this and whether it needs to be declared?

Many Thanks

Orville

gspec312 wrote: »

Hi all, i think my DRO should be processed soon hopefully next week. One problem I have is my car has just been written off and im about to receive a cheque for £2000 to cover the original cost of the car and a personal injury. I know this will affect my income, but i will only be buying a new car and paying back the rest of the money to family that I owe. Any help on this and whether it needs to be declared?

Many Thanks

Well your DRO should not be processed if the car you own is worth the 2k you are getting a cheque for. I gather the car is in your name as they are making the cheque out to you, which then bodes the question of why the car valuation you got done has not come up at 2k.

Oh sorry my apologies, you say a personal injury payment too, sorry i missed that. Well i do know that you should declare all income. You do know about this prior to taking the dro out, so did you not tell your advisor..?

fatbelly

gspec312 wrote: »

Hi all, i think my DRO should be processed soon hopefully next week. One problem I have is my car has just been written off and im about to receive a cheque for £2000 to cover the original cost of the car and a personal injury. I know this will affect my income, but i will only be buying a new car and paying back the rest of the money to family that I owe. Any help on this and whether it needs to be declared?

Many Thanks

Did you mention this to your intermediary at the CAB?

I think you should, and yes, it will be regarded as an asset, which will take you outside the criteria for a DRO. So no point starting one.

You should also be careful about treating your family debts preferentially - discuss this with your adviser.

Orville

Just a quick question, can you be defaulted once a dro has been granted?. I thought that when it's granted all activity on the account should freeze..?. I noticed when my DRO ended on a credit check a default was placed after the granting of my dro.

gspec312

many thanks, I haven't had the meeting with them yet, if I am to use it to buy a car for less than £1000 and then have the other £1000 declared as income would this be sufficient, as on the first meeting I had said I had a car, but since then I have had it written off and the car is a necessity for work...the car was worth less than £1000 originally and i am due to receive around £700 for the car and £1300 for the personal injury.

Orville

gspec312 wrote: »

many thanks, I haven't had the meeting with them yet, if I am to use it to buy a car for less than £1000 and then have the other £1000 declared as income would this be sufficient, as on the first meeting I had said I had a car, but since then I have had it written off and the car is a necessity for work...

You maybe ok with the car, but as far as a 1k cash income goes i am pretty sure you would still fail as you can't have assets over £350.

gspec312

Yeh i see what you mean, even if it goes down as an income over the space of the year? Also the application for a Dro has not yet been submitted, I have only just gone through the budget which can be amended, and if I was to pay back the family members straight away before the dro is submitted would that be fine, because id then no longer have the assets?

Or if i was to cash the cheque at say cash converters then no one would know anything about the cheques anyway...correct....as i wouldn't put the money in an account?

immoral_angeluk

Orville wrote: »

Just a quick question, can you be defaulted once a dro has been granted?. I thought that when it's granted all activity on the account should freeze..?. I noticed when my DRO ended on a credit check a default was placed after the granting of my dro.

They can do anything they're obliged to do under the consumer credit act, ie send statements etc. I believe this extends to defaults but it's a grey area really as a default is a demand for payment..

immoral_angeluk

fatbelly wrote: »

Did you mention this to your intermediary at the CAB?

I think you should, and yes, it will be regarded as an asset, which will take you outside the criteria for a DRO. So no point starting one.

You should also be careful about treating your family debts preferentially - discuss this with your adviser.

Totally agree. Assets over £300 and a preference plus potential withholding of info if the debt to family wasn't declared.

I would be strongly advising against submitting a DRO on that basis, but the OP needs to speak to their intermediary.