Debt Relief Orders (DRO) - Information & help thread

National_Debtline

Hi DROgrantedrelief

I take it these Barclays and Lloyds debts were listed in your DRO application?

If so, they should stop sending such correspondence, and any threats to take money from accounts you have with them should not be acted on.

You can ignore the letters if you so wish, but alternatively you may wish to inform the DRO Unit about this in order to put a stop to it.

Regards

Dennis @NDL

undaunted

From what you posted I assume you have no such accounts anyway but if this isn't the case then personally I think I'd withdraw the money & place it elsewhere.

I'd probably also write, enclose a copy of the DRO & therefore ask them to cease this harrassment.

DROgrantedrelief

undaunted wrote: »

From what you posted I assume you have no such accounts anyway but if this isn't the case then personally I think I'd withdraw the money & place it elsewhere.

I'd probably also write, enclose a copy of the DRO & therefore ask them to cease this harrassment.

Yes the only accounts I have with them are listed in the DRO and I no longer use them, as I switched banks when I did the DRO.

I don't know if they could run up an unauthorised overdraft, or use up the available credit in the credit cards, but again these were listed on the DRO, so guess they could not do that.

DROgrantedrelief

National_Debtline wrote: »

Hi DROgrantedrelief

I take it these Barclays and Lloyds debts were listed in your DRO application?

If so, they should stop sending such correspondence, and any threats to take money from accounts you have with them should not be acted on.

You can ignore the letters if you so wish, but alternatively you may wish to inform the DRO Unit about this in order to put a stop to it.

Regards

Dennis @NDL

Hi Dennis,

Thank you for your response, am going to put it down to a timing difference for now and ignore the letters, but if it persists I think I will report it to the DRO unit.

Xaviera

National_Debtline wrote: »

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

Hello

Thankyou for all your information, it's been a great help.

As it stands I am right on the border of the 15k, so am going to order a credit report to be sure of my figures, is it worth getting both Equifax and Experian? Or will just one (which?) be ok?

fatbelly

Xaviera wrote: »

Hello

Thankyou for all your information, it's been a great help.

As it stands I am right on the border of the 15k, so am going to order a credit report to be sure of my figures, is it worth getting both Equifax and Experian? Or will just one (which?) be ok?

Your intermediary will need a copy of the Experian report so, if you're in a position to hand over a recent copy, that may well save a few weeks. It would be best however if you could report accurate figures rather than those on the credit report. Presumably your creditors are writing to you regularly. If not, now may be the time to phone and ask for the latest balances.

If you find yourself a little over the limit, you may have to do pro-rata payments to bring you back under the 15k.

Xaviera

fatbelly wrote: »

Your intermediary will need a copy of the Experian report so, if you're in a position to hand over a recent copy, that may well save a few weeks. It would be best however if you could report accurate figures rather than those on the credit report. Presumably your creditors are writing to you regularly. If not, now may be the time to phone and ask for the latest balances.

If you find yourself a little over the limit, you may have to do pro-rata payments to bring you back under the 15k.

Ok will get an Experian one, Payplan deal with all of my creditors so I haven't heard anything for years (except this latest Frerickson one which turns out is MBNA which payplan are dealing with). I am going by the Payplan figures that this is all I owe......

What do you mean by pro-rata payments, sorry?

fatbelly

Xaviera wrote: »

Ok will get an Experian one, Payplan deal with all of my creditors so I haven't heard anything for years (except this latest Frerickson one which turns out is MBNA which payplan are dealing with). I am going by the Payplan figures that this is all I owe......

What do you mean by pro-rata payments, sorry?

I have known Payplan figures to be inaccurate as they sometimes assume interest frozen when it isn't. I'd hate for you to go through this only for some creditor to scupper the whole thing by producing figures that take you over 15k.

Are you using Payplan as your intermediary?

Pro-rata payments (link to credit action factsheet) are payments in proportion to each debt. You must do this so that you do not treat one creditor preferentially over another.

Edit: as you're already paying your creditors there's nothing to be scared of in phoning them to check the latest balances. It will be a couple of hours well spent. If any of them want to take the discussion further than 'what's my balance' then you can just say 'discuss it with Payplan'

National_Debtline

Hi Xaviera

Perhaps I am stating the obvious here, but when determining your total indebtedness, please don't forget to take into account any debts you have which will not necessarily appear on a credit report - council tax arrears or benefit overpayments, to pick two examples at random.

Regards

Dennis @NDL

sally26_2

Hi guys I have decided to go for a DRO,my main worry is my rent arrears which stand at 1,700. I spoke to Housing who said that they can still collect the debt while I am on the DRO and that they can still evict when The DRO is finished...........I am confused