Debt Relief Orders (DRO) - Information & help thread

fatbelly

mystery_girl wrote: »

My friend has done a debt relief order with the cab.
She has asked me for advice but not done any welfare rights work in DRO for some years.

Her and her husband seperated and the divorced. The water rates were in his name though she dealt with it and paid it through her bank.
Now the water people have stated that she is not responsible for the bill even though they knew he was no longer there and she had been paying it.

What should she do?

Thanks for the help.

If she is resident at the property then she is liable for water usage there.

Most water authorities have a bankruptcy clause that they apply to DROs so that (assuming the water arrears were put in the DRO) her liabilities to the day the DRO is granted are written off, and a new account is created from that day.

If they believe that there was joint liability for part or all of that period then they are entitled to pursue the other person for the debt. That's up to them.

So she should make an arrangement to pay for her ongoing usage at the property.

mystery_girl

fatbelly wrote: »

If she is resident at the property then she is liable for water usage there.

Most water authorities have a bankruptcy clause that they apply to DROs so that (assuming the water arrears were put in the DRO) her liabilities to the day the DRO is granted are written off, and a new account is created from that day.

If they believe that there was joint liability for part or all of that period then they are entitled to pursue the other person for the debt. That's up to them.

So she should make an arrangement to pay for her ongoing usage at the property.

Thank you for your reply. How can someone with their own liability for another address share the responsibility for a house they left in 2005?

The DRO includes water charges till April 2014. The bills were always paid through her bank account and they were made aware that her husband had left.

The letter states:

Unfortunately as you are not named at the above address and therefore not responsible for the water charges on the account we are unable to proceed with the debt relief order application,

Even if they put the charges in her name they have accepted payment from her bank account, knew her husband had to leave and spoke with her and discussed the matter on the telephone in the past.

I have advised her to send the letter to both and remind them of the above and ask how to proceed. What do you think? You advice would be appreciated.

Thank you.

fatbelly

mystery_girl wrote: »

The DRO includes water charges till April 2014.

See previous comments about likely bankruptcy clause. They can demand the full year's water charges at the start of the tax year but when someone goes bankrupt/gets a DRO mid-year then only the arrears to that date are cleared.

From your friend's perspective, one way or another they are saying she has no need to pay for water before the DRO date. So she should make an arrangement to pay for her ongoing usage now, with a clean slate.

If you want to represent the ex who is going to be pursued for water charges for a property he left 8 years ago, then maybe that's one for the Utilities/water board here.

Esio_Trot_2

Sadly, for the divorced husband, he will be 100% liable for the period the bill was in his name - whether or not payments were made from somebody else's bank account.

We deal with house shares, and after one year a tenant left and the remainder found a replacement.

Sadly, the tenant who left did not ensure that his name was removed from all utility accounts, plus council tax.

The remaining tenant racked up bills of almost £1,800, plus almost the same in council tax.

The tenant who left now has a good job, so is being chased for liabilities after he left. Trouble is as his name was still on the bills, and he didn't make sure his name was removed, he is liable and will have to pay.

kayester

nobody replied to my question a few months ago but managed to sort my credit file out so all shows as 'satisfied' now
i have also been accepted for a vanquis card (which i am paying IN FULL to improve credit rating, and now saving for a mortgage, and trying to spend less per month, as shown in my signature)
good luck to anyone, we have all been in bad places and its how you get out of them that helps

mystical_flower

Hi

I would if anyone can help me? I was discharged from my DRO in May this year.I have checked my credit file and only 1 of my creditors has updated my credit file with 'partially settled'.I think I found a thread on here previously with a template letter to send to creditors requesting they update my credit file,but I have had no luck finding it,can anyone help?

Also,not that I want to at this point in time,but is there a possibility of ever getting credit again after a DRO?

Thanks in advance

Orville

mystical_flower wrote: »

Hi

I would if anyone can help me? I was discharged from my DRO in May this year.I have checked my credit file and only 1 of my creditors has updated my credit file with 'partially settled'.I think I found a thread on here previously with a template letter to send to creditors requesting they update my credit file,but I have had no luck finding it,can anyone help?

Also,not that I want to at this point in time,but is there a possibility of ever getting credit again after a DRO?

Thanks in advance

Hi,

Can't help on the template, but yes you can get credit after a DRO. However it won't be your usual high street card etc, it will be a high interest Vanquis One or similar. After six years everything pertaining to the DRO should drop off your file and you should be back to normal. :-)

kayester

have PM'd you mystical flower

hope you get it sorted.

DarkFairey

Phew... at long last ive gotten through the last 140 pages of this thread, admittedly its taken me five nights so far..

I just wanted to ask a few questions, as I am COMPLETELY lost, I seemed to think that getting a debt relief order would be so easy, as by the time Ive paid my bills, i am, you guessed it.... broke.
Actually until a few months ago I was broke by the time I had paid half of my bills, but I sent back all of my HP goods, which has meant I can now pay all of my living expenses and have around £10 left over each month.

So from what I gather, all that is ok, Now comes the hard bits.

Whilst going through my monthly expenses, I was hit by the fact that some of my bills seem extraordinarily high... and I dont know how to sort them.

Firstly, my electric bill seems economical compared to every one elses, I only have a small house which is all electric and no gas, We also have electric heaters which are crap to run, and really need to be on all day to make a difference, and we are also on a meter, and paying £5 off in arrears each week... but my electric bill is between £100 and £160 a month.. the added £60 is in the colder months where the heating is always on and the cooker is on quite a bit. I dont think it helps that I am usually always at home, and I suffer from sleeping issues, so I spend all night up, usually watching tv.... it just seems so much higher than anyone elses.

Secondly, Ive struggled with debt for the whole time Ive been an adult, since I was 18 really. When I found it hard to get a contract phone, my dad allowed me to take one out in his name...and I of course wanted the newest Iphone at the time, so I wasnt too bothered with the amount it would cost each month, and part of one of my illnesses means that Im quite impulsive, and I never thought that £42.00 a month was too much to pay until 3 months down the line, I dont see how I can ever justify this in my expenses when applying for a DRO?

I also have another very similar issue, my ex partner was talked into getting sky put on in my house, in his name, he was offered a good package, which he said yes to, which dont get me wrong is brilliant, and our only source of entertainment, as the tv is too old to plug a dvd player into, and I suffer from Agoraphobic tendencies, so we dont venture out anywhere nice. This is £73 per month, again, I am unsure how I could ever justify this. Its extortionate!

Am I likely to be able to offset these costs somewhere? As I dont really spend money on clothes, or entertainment or anything?

and because these are contracts in other peoples names, theres a real pressure to keep them, and paid upto date. If these were my debts, I could just let them default, but I cant do that to people who have trusted me to be responsible, and its not like either of them could pay the creditors off either..

I also have one other issue, that I havent seen on here, I am self employed, really as something to keep me focusing on something, and so I can feel like I actually do something, despite being too ill to take on new clients, I have explained that I dont make any money out of work, because I take Taxis to clients houses, and because of my issues, I will only work for trusted regulars so work is quite limited, because I have agoraphobic tendencies, depression and borderline personality disorder, I take taxis everywhere work wise, which means im lucky if I break even.
How can I show this? as the taxi firm I use doesnt issue receipts...

Ive also been asked to give my Unique tax reference or similar, which im so embarassed to say, that I havent even sorted, because the first year I was self employed I made no profit,so I thought oh I wont need to do tax return,.... I will next year when I make some money, then six months into the next year which was going well, My illnesses took over, so I stopped working as much.. So I still stayed well under the taxable amount of wages, then this year I am seriously shocked if I dont lose money.... but it gets me out, and makes me feel happier with myself I suppose.


Sorry this was so long, I have a habit of rambling on, but I just wanted to ask these questions, so I can be prepared for my appointment to see someone at the CAB about getting a DRO next week.

I want to be well prepared and take everything I need so I can get it all done then.

Ps... will they be likely to be able to give me my barcode for payment there and then?

kayester

DarkFairey i dont think you understand fully what a DRO is?
Where have you actually got depts?
You dont get a barcode to make payments, they needs proof of all your debts, in your name and after a year of you being sensible they contact your creditors to satisfy your accounts.

how long is the contracts with your phone and sky? can you lower the bills? im getting the maximum tv channels from sky and am paying half what you pay.
can you set yourself aside a few hours a day to not have tv on to save electric?
Unless you have outstanding debts and a DRo would make big changes for you then I really dont see this is the way forward for you.
You must be aware this stays on credit report for the next 6 years. I have 3 years left and I wish I could have done something at the time to not have a DRO