Debt Relief Orders (DRO) - Information & help thread

brownm0435

Probably getting ahead of myself here. If my name isnt on the IIR tomorrow do I assume Ive failed my DRO application?

fatbelly

brownm0435 wrote: »

Probably getting ahead of myself here. If my name isnt on the IIR tomorrow do I assume Ive failed my DRO application?

Absolutely not. I have an application rumbling on that I made over a week ago - the DRO Unit want more info and we're working on it.

If the application was made on Friday (you sure that's when the intermediary pressed the button?) then the earliest is could have been accepted was today, and mine from Friday were not accepted today.

However, if accepted today it would appear on the IIR tomorrow, early.

brownm0435

fatbelly wrote: »

Absolutely not. I have an application rumbling on that I made over a week ago - the DRO Unit want more info and we're working on it.

If the application was made on Friday (you sure that's when the intermediary pressed the button?) then the earliest is could have been accepted was today, and mine from Friday were not accepted today.

However, if accepted today it would appear on the IIR tomorrow, early.

Hi fatbelly, yes as far as I am aware the button was pushed at 9.15am Friday morning after I advised payment and gave final balances. Sorry just getting a bit panicky as this (like to many others before and after me) means so much to me and my partner to get us back on our feet and have a fresh start. Been a bag of nerves all day today.

Xaviera

National_Debtline_representative wrote: »

Hi Xaviera

Have answered a couple of specific queries in bold above.

Who are you using for your DMP - fee charger or free provider?

If it's a fee charger they're not going to be interested in helping you go down DRO route instead - there's no money in that for them.

Key facts about the DRO process can be found here:

http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=37_debt_relief_orders


***IMPORTANT*** Bankruptcy is sometimes the "safer" of the two insolvency routes if you are a sole trader with tools/stock of value. The Official Receiver in bankruptcy can use their discretion to disregard the value of such items if they are essential for your trade and livelihood. In a DRO, there is no such provision for discretion, so the law of unintended consequences may apply.

Regards

Dennis @NDL

Hi I don't have any stock so am not worried about that, I spoke to my DMP people (fee free payplan) and they suggested I get an IVA.

I think a DRO would be better for me as it gets written off sooner, but what is the disadvantage of it? As I understand it both an IVA and a DRO will mess my already screwed credit rating up further so why would I want to pay into something (an IVA) for 5 years when I could have it written off in one?

National_Debtline

Xaviera wrote: »

Hi I don't have any stock so am not worried about that, I spoke to my DMP people (fee free payplan) and they suggested I get an IVA.

I think a DRO would be better for me as it gets written off sooner, but what is the disadvantage of it? As I understand it both an IVA and a DRO will mess my already screwed credit rating up further so why would I want to pay into something (an IVA) for 5 years when I could have it written off in one?

Hi again Xaviera

DRO and IVA are very contrasting options, as you realise.

If you are struggling to make any payments into the DMP as it is, it's understandable that you don't see a 5 year IVA as something that appeals to you. IVAs are generally best suited for people who have specific reasons for wishing to avoid DRO or bankruptcy. An IVA would not damage your credit file to the same extent as DRO, as it involves you still making some level of repayment towards the debts.

Main "disadvantages" of DRO include:

- The effect on your credit rating is equivalent to that of going bankrupt;
- The DRO drops off your credit file after 6 years but you can be asked by lenders beyond that point whether you have ever been insolvent, which may affect a future mortgage application for example;
- Your bank *may* close your account but practice varies between providers; getting an alternative basic account would still be possible;
- Your details will appear on a public insolvency register for the 12 months of the DRO plus a further 3 months after it ends.

You may not find these disadvantages particularly off-putting, and there's no specific reason you should. Different people will place varying levels of importance on their credit rating, publicity etc.

Do please have a read of our DRO fact sheet for fuller information if you haven't already done so:

http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=37_debt_relief_orders

Regards

Dennis @NDL

brownm0435

brownm0435 wrote: »

Hi fatbelly, yes as far as I am aware the button was pushed at 9.15am Friday morning after I advised payment and gave final balances. Sorry just getting a bit panicky as this (like to many others before and after me) means so much to me and my partner to get us back on our feet and have a fresh start. Been a bag of nerves all day today.

And the wait goes on!!! :wall:

fatbelly

Well I still haven't heard about the one I did on Friday. But that may be because the entire CAB email system was down from 2pm today.

You do seem a bit vague about whether it was submitted (as far as I am aware).

I 'press the button' while the client is on the phone to me and say explicitly 'that's gone through to the DRO Unit. Let's keep our fingers crossed for the next 24 hours. As soon as I get their email I'll phone and let you know'

Give your intermediary a call tomorrow if you don't appear on the register tomorrow morning. They seem to update it really early - before the working day starts.

brownm0435

fatbelly wrote: »

Well I still haven't heard about the one I did on Friday. But that may be because the entire CAB email system was down from 2pm today.

You do seem a bit vague about whether it was submitted (as far as I am aware).

I 'press the button' while the client is on the phone to me and say explicitly 'that's gone through to the DRO Unit. Let's keep our fingers crossed for the next 24 hours. As soon as I get their email I'll phone and let you know'

Give your intermediary a call tomorrow if you don't appear on the register tomorrow morning. They seem to update it really early - before the working day starts.

The wait is over it has gone through! That was a horrible few days! Never collapsed when I checked the register this morning! I couldn't breath lol! Feels like the biggest weight ever is off my shoulders! A big shout oit has to go to you and orville on here and everyone else who offers advise! Thank you guys so much and hopefully in future I can help people with my experience!

brownm0435

Sorry about the mistakes bloody predictive text lol

DROgrantedrelief

Is it ok to post in this topic for questions about a DRO?

I have terminal liver disease and I am unemployed, went for more than a year using up all my savings paying monthly loan payments until had nothing left, so I was forced to get a DRO, up to the DRO I had no missed payments, the last one they took wiped out my housing benefit payment and left me £5 short of my overdraft limit.

Despite the DRO having been granted on the 26th November, I have been getting notifications from Barclays and Lloyds telling me I have to setup direct debits to repay loan/credit cards.

The most recent letter from Lloyds reads

"We have reviewed your account and see that you are behind on your payments.

Please contact us urgently on the number above so we can discussion the options available to you and how we can assist (0845 number)

If you do not make the payments due we may try to take the payment from any current or savings accounts you have with us, even if it is a joint account. Once we have taken a payment we will write to inform you that we have done so"

Director of Collections and Recoveries

My question is can I just ignore these letters?