Debt Relief Orders (DRO) - Information & help thread

fatbelly

worn_out wrote: »

My question is, should I contact CCCS and make a start, seeing as plan A hasn't worked out (the CCA letters). What I am thinking is when I get to 65 I will have my OAP, which will enable me to do more with my life...but not if the debts take all that money (I'm living on a small works pension and Housing Benefit at the moment).

There's nothing in your post to suggest that a DRO would be a bad idea. Give CCCS a ring.

mobix

Hi there
I'm new here and I need some information please. I'm considering DRO but I can't find anywhere answers to my questions. I've seen CAB and 2 financial advisors and still back to square 1!
Can anyone please tell me what happens if:
1. My income goes over 50 pounds a month, let's say it will be 52 pounds after all my expences?
2.Can my wife, who is not doing DRO transfer some of her (actually our) direct debits onto my account to minimise my monthly income? i.e. rent, electricity bills, phone bills? Her name is on most of them but they actually refer to our household.
3. When 12 months is gone and then my income goes up, will I still have to pay my debts back?
4. What happens if within the 12 months my income goes up significantly, DRO is cancelled but then my income goes down again so i can't pay the debts off again?
5. Is anybody checking how much I exactly spend on food and clothes? Do i need to keep the receipts? There are months when I spend more and when I spend less. How do they do the calculations?
6. One of my credit cards will not be included in DRO as I'll be over the 15,000 limit. I will still have to pay it off on a monthly basis. How much am I allowed to spend on the payment a month? Can I adjust it to stay under 50 pounds limit?
7. Do I need to inform anybody how much my wife earns?
8. I rent a house and I don't want my landlord to know what my plans are. Will he be notified about me doing DRO?
9. I have just opened a new bank account. My debts are on an old account. Will my new account be affected in any way by DRO? Can it get frozen?
10. If my wife's car is worth more than 1000 pounds, will it have any effect on DRO if I'm going to drive it? (she is the owner)
I would very much appreciate if anybody can advise on the above as the clock is ticking and I've run out of time.......
Thank you.

fatbelly

mobix wrote: »

6. One of my credit cards will not be included in DRO as I'll be over the 15,000 limit.

Then the CAB and your other advisers should have informed you that you do not qualify for a DRO.

You must declare ALL your debts . You can't just pick and mix.

You will need to find another strategy, or treat all your creditors equally (as in a DMP) until your total indebtedness becomes less than £15k. Then consider whether you qualify.

mobix

Hello,

Thanks for that.
And what if I manage to squeeze them all in 15k?

thanks

immoral_angeluk

mobix wrote: »

Hello,

Thanks for that.
And what if I manage to squeeze them all in 15k?

thanks

Depends what you mean by 'squeeze them in'.
Either your debts exceed 15k or they don't. You have to declare all debts and to not do so could A) cause your DRO to be refused or revoked cause you to potentially get a Debt Relief Restrictions Order (for preferencing a creditor and lying on your application) C) cause you to lose your £90 fee (if refused/revoked) D) worst case scenario cause you to be prosecuted for making a false declaration.

Not worth the risk IMHO.

mobix

immoral_angeluk wrote: »

Depends what you mean by 'squeeze them in'.
Either your debts exceed 15k or they don't. You have to declare all debts and to not do so could A) cause your DRO to be refused or revoked cause you to potentially get a Debt Relief Restrictions Order (for preferencing a creditor and lying on your application) C) cause you to lose your £90 fee (if refused/revoked) D) worst case scenario cause you to be prosecuted for making a false declaration.

Not worth the risk IMHO.

By squeezing them in I mean negotiating with my car lease people. If I return my car now I need to pay them quite a lot of money. If they agree to lower the final payment then I will fit in the 15k limit

immoral_angeluk

mobix wrote: »

By squeezing them in I mean negotiating with my car lease people. If I return my car now I need to pay them quite a lot of money. If they agree to lower the final payment then I will fit in the 15k limit

Is it hire purchase? Another thing to consider is that excluded debts and in some circumstances hire purchase can be ignored for the purposes of calculating the 15k limit.

mobix

immoral_angeluk wrote: »

Is it hire purchase? Another thing to consider is that excluded debts and in some circumstances hire purchase can be ignored for the purposes of calculating the 15k limit.

yes it is hire purchase. I need to try to fit it in as I can no longer afford monthly repayments. So either way they will take the car back and be after me to pay half of my credit which I cannot afford anyway, hence an idea of putting it under DRO

immoral_angeluk

mobix wrote: »

yes it is hire purchase. I need to try to fit it in as I can no longer afford monthly repayments. So either way they will take the car back and be after me to pay half of my credit which I cannot afford anyway, hence an idea of putting it under DRO

Can you voluntary terminate? If THEY terminate the agreement you'll be chased for the full whack, not half. If you terminate via voluntary termination you'll only be liable for half. This could make a big different to your total debt amount.

Alloneword

I am going through CCCS to obtain a DRO they have sent me all my paperwork back to me and i just need to sign the "Debtors Declaration Statement" and send it to the OR, do i just sent the single page back with my sig or the whole thing that will list my debts to the OR.


All1