Debt Relief Orders (DRO) - Information & help thread

CCCS_Alan

mr_pickles wrote: »

Hello
My husband has one debt to Lloyds (roughly £1100.00) in his name only. His only income is Carers Allowance which is £53.10 per week.(our only other income is benefits which are in my name) could he apply for a DRO, or.... I will be applying for a DRO for my debts so could I include his debt in with my own DRO?
Thank you for any advice in advance

Hi Mr Pickles

You would only be able to include your own debts into a DRO unfortunately.

It is to difficult to say what the best option would be for your husband, so I would advise him using our online debt advice facility called Debt Remedy. Debt Remedy would assist him in completing a financial statement and he would be provided with tailored advice on the best way to deal with his situation. Click here to go directly to Debt Remedy.

Hope this helps

CCCS_Alan

debt_doctor

In a DRO, you put all of your DLA in as income and then take all of it out, listing it under 'essential expenditure'' as 'care needs'.

DD

lataniakn

has anyone who has applied for a dro and been granted it had anything happen to their bank account yet? i was just wondering what the chances of banks closing down current accounts, especially if you're granted a dro including an overdraft.

elfieb

lataniakn wrote: »

has anyone who has applied for a dro and been granted it had anything happen to their bank account yet? i was just wondering what the chances of banks closing down current accounts, especially if you're granted a dro including an overdraft.

If you include an overdraft in your DRO, the account associated with it will be frozen, and you will need to open a basic bank account before you apply for a DRO.

lataniakn

many thanks elfieb! i thought that would be the case but wasn't entirely sure. So I assume if you dont include the OD then your account will be safe?.... I'm debating wether or not to include it in the application you see...

elfieb

lataniakn wrote: »

many thanks elfieb! i thought that would be the case but wasn't entirely sure. So I assume if you dont include the OD then your account will be safe?.... I'm debating wether or not to include it in the application you see...

If you have no debts associated with your bank account, then your account will be untouched. However should you have other debts associated with the bank (eg credit cards), they are still within their rights to take money from your account without your permission, hence why it is a good idea to set up a new bank account seperate from your debts.

lataniakn

ahh yes, in that case i do have a loan with them (alliance and leicester) so maybe i should set up a different account with another bank before i do anything else... does it have to be a basic account i set up with another bank? thanks again.

moneymouth77

Sorry to agree Mr Pickles, but there's no way you could both be on the same order. DebtRemedy is a solution, maybe a discussion with the bank... try every option before giving up! Sometimes, the bank may offer a solution, or Debt Remedy may also be a good solution. Good luck!

elfieb

lataniakn wrote: »

ahh yes, in that case i do have a loan with them (alliance and leicester) so maybe i should set up a different account with another bank before i do anything else... does it have to be a basic account i set up with another bank? thanks again.

It doesnt have to be a basic bank account, but with non basic accounts, very often a credit check is performed, and if you have a bad credit rating, it is unlikely that you will be accepted.
With basic accounts, credit checks are unlikley to be performed, making it much easier to get an account.
Natwest and Co-op have very good basic accounts.

lataniakn

thanks again i'm just in the process, this minute, of applying for the natwest basic account that you've mentioned. My credit rating is actually ok at the moment, but i'm suspecting will downfall if things dont improve (hence the dro). so now i dont know wether to apply for a normal standard account.