Debt Relief Orders (DRO) - Information & help thread

trillium1986

Hi i am currently on a dro and have just received £1800 in backdated tax credits from before i was on the dro. do i need to do anything and if so how will it affect my dro.
thanks
ben

fatbelly

Well I think this is the answer but I can't find it in the official guidance

The DRO unit will regard the backdated benefit as "income" and spread it over the period of time to which it relates. So if the backdate covers a couple of months, the amount you receive should be divided up amongst that time. If your income increases above the maximum £50 per month for this time it could revoke the DRO.

debt_doctor

fatbelly wrote: »

Well I think this is the answer but I can't find it in the official guidance

I agree, the payment is apportioned over the time it was meant to have been paid, so if the payment relates to a time period prior to a DRO then it does not affect current disposable income.

Note for FB - I think it was in Arian or Adviser magazine as one of those "The DRO unit have confirmed....." type things.

DD

Wizzpop

I currently have debts near £15000 and no way to pay them .
I am considering a dro .
I owe money to credit cards but 2 of them are joint accounts , so would my husband also have to apply for a dro ?
We dont have any assets or much income .
Also how long will it effect my/ our credit rating?

fatbelly

Wizzpop wrote: »

I currently have debts near £15000 and no way to pay them .
I am considering a dro .
I owe money to credit cards but 2 of them are joint accounts , so would my husband also have to apply for a dro ?
We dont have any assets or much income .
Also how long will it effect my/ our credit rating?

Hi Wizzpop

Credit cards are in single names. There may be a second card holder but the liability remains with the one whose name the account is in.

If there were joint debts, like a joint overdraft or utility/water/council tax bills, then the full amount has to be entered in each person's DRO. Otherwise the whole debt just squeezes over to the other person.

The Dro remains on your credit file for six years.

If you are already near 15k in debt then you should check out this option pretty soon, as you cannot have one if you exceed this limit, and you must list all your debts.

The official guide is here and National Debtline's factsheet is here:

Factsheet Debt relief orders

Spaingirl_2

Hi,

I was accepted for my debt relief order this week,
before it was submitted on the day I rang creditors and got up to date balances, these were submitted. My DRO was granted the next day,
this morning I received a statement from one of my creditors and it seems the day I rang up for the balances that evening they updated the balance
and now one of my amounts is wrong, it is only out by about £9 I actually added extra to the balance in case of charges, so now what do I do?

I am so annoyed :mad: I asked on the phone was the balance correct for the day and they said yes, no mention of charges being added the end of the day.
I know I am not supposed to make payments when the DRO has been granted, but I am afraid now the balance is wrong the company will add charges and interest to the £9 owed and then I will be back to square one again. The creditor is a catalogue and we all know how they like to add on the £12 charges. I am going to ring the insolvency service to ask but they are not there until monday, and I feel anxious about this now, has anyone else been in a similar position who could advise me, any answers or advice greatly appreciated.

Many thanks in advance.

fatbelly

Spaingirl wrote: »

Hi,

I was accepted for my debt relief order this week,
before it was submitted on the day I rang creditors and got up to date balances, these were submitted. My DRO was granted the next day,
this morning I received a statement from one of my creditors and it seems the day I rang up for the balances that evening they updated the balance
and now one of my amounts is wrong, it is only out by about £9 I actually added extra to the balance in case of charges, so now what do I do?

Don't panic. This sort of thing happens all the time and I've not known it to cause a problem yet.

If the catalogue company does come back with anything odd, let us know and we'll point you in the right direction.

Spaingirl_2

Thanks fatbelly,

I am going to ring CCCS tomorrow they did the DRO for me and see what they say, hopefully this slight difference in the balance will not cause too many problems. I will update the thread when I know something, thanks again for your reply.

Spaingirl_2

Just an update to my previous post I rang the insolvency service regarding the difference in balances, spoke to a lovely man who explained everything he said that I would be liable for the difference. I asked him if I could pay it straightaway he said that was fine, as long as I only paid the difference and no more, so I have paid the difference and now my balances are correct. He told me I did the right thing in ringing them first to check what I was able to do and if I had any questions or problems in the future just to give them a ring which is comforting to know. Apparently this happens to alot of people, they give balances and they update them the same day and it leads to a slight difference. Hope this helps someone who may be in a similar position in the future.

morleyboy

I need your advice guys. I've hit rock bottom and the DRO that i'm reading about is giving me a glimmer of hope.

I left a well paid job in February and took a bar job until the beginning of May to relieve some stress. I have been in the USA for two months trying to clear my head and move back to the UK on Tuesday.

I have unsecured debt of £12000 including numerous payday loans that are due to be paid at the end of the month. All of these will bounce. (I am unbelievably stupid, I know).

When I return on Tuesday I aim to take a job working approximately 20 hours a week, probably at the minimum wage of £6.08ph. I feel unable to resume full time work due to ongoing personal issues I need to address in my life. I will look for a cheap room to rent in London, no more than £500.

With these calculations in mind I think that would leave me with less than £50 disposable income before addressing any creditors.

My question is, would I not be eligible to seek a DRO until I have found employment and somewhere to live? I want to avoid full bankruptcy as I feel this is an absolute last resort.

I filled out the online questionnaire on the CCCS website and they are sending me the DRO application. (I input my projected 20 hour income and £500 rental costs),.

Please help guys, I think I have hit rock bottom in my life. The only way is up as they say.

I'd appreciate any advice and support.

Thanks