Debt Relief Orders (DRO) - Information & help thread

Xaviera

fatbelly wrote: »

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'

Eeek ok. Didn't know that about the frozen credit thing. :mad: Yes I have been using them for the last 5 or 6 years since I got into trouble, I just want shot of everything now, am so stressed out with all am having mental health problems.

Thanks for the link to the factsheet. Will take a look. Should I still get a credit report?

National_Debtline wrote: »

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

Thanks, I don't or shouldn't have any of these.

fatbelly

sally26 wrote: »

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

This is true - you are allowed to make payment to rent arrears while you are in that property. However, if they were to evict you they could no longer collect on them. So it makes sense for them to keep you in there.

cwmparc

Hi, I am in the process of a DRO. My parents bought a car so they could shop, hospital visits etc, they don't drive so the car was registered in my name as I am the one who drives them around. How would this affect the DRO, As I am not the owner only the registered keeper. Would a letter suffice from my parents to say they are the owner.
Thanks in advance

fatbelly

cwmparc wrote: »

Hi, I am in the process of a DRO. My parents bought a car so they could shop, hospital visits etc, they don't drive so the car was registered in my name as I am the one who drives them around. How would this affect the DRO, As I am not the owner only the registered keeper. Would a letter suffice from my parents to say they are the owner.

Yes.

There's no routine DVLA search done but if you are including the costs of running a car in your expenditure it may be worth your Intermediary putting a note on the application to the effect that you have the use of a car you do not own.

Alloneword

cwmparc wrote: »

Hi, I am in the process of a DRO. My parents bought a car so they could shop, hospital visits etc, they don't drive so the car was registered in my name as I am the one who drives them around. How would this affect the DRO, As I am not the owner only the registered keeper. Would a letter suffice from my parents to say they are the owner.
Thanks in advance

I had something a bit like this where my bank account had about a £1000 worth of ebay/paypal/cash withdrawals, i did include covering letter explaining these were deals for a friend who didn't have a eBay account they were fine with that, they didn't even ask to contact him to check this, so i'm guessing just a covering letter from them would be fine.

All1

cwmparc

Thanks, fatbelly and Alloneword.
Puts my mind at rest as I didn't want my parents vehicle involved with my problems

grumblybumbly

Hi
Quick DRO question for a friend;

About to get a DRO after finding out about lots of debts run up by ex and kept secret from me both during our marriage and for the nearly 4 years post separation. When I discovered debt I *should* have just got the DRO and said nothing to ex but I did give ex the chance to explain one debt (not mentioned I know anything of other debts).

I'm in the process of applying for the DRO, it's arrived today and I intended to include the one debt she knows I know about. However, I've also just had a response from a creditor (I asked for statement of account) to say that they are awaiting the clearance of a cheque from the ex to pay off the account.

Can the ex take me to small claims for my supposed halve of this debt?
Should i still include the debt on the DRO list?

Thanks in advance for your help :-)

longtermplanner

"I'm in the process of applying for the DRO, it's arrived today and I intended to include the one debt she knows I know about."

It's not optional what debts you 'include' in a DRO - they have to ALL go in. If there are other joint debts that she doesnt know you know about, they ALL have to go in.

"I've also just had a response from a creditor (I asked for statement of account) to say that they are awaiting the clearance of a cheque from the ex to pay off the account.

Can the ex take me to small claims for my supposed halve of this debt?"

Had the ex previously asked you to pay half? If so, I guess you could include the half of the amount you owe to ex. But you ex would have to be a sandwich or two short of a picnic to think you would be worth suing, surely? I would ask your DRO organiser what you should do about this.

fatbelly

Yep, all debts must go in, including debts to individuals

Joint debts go in in full. Each party is liable for 100% of the balance figure.

No court action is possible (well the creditor can try but you have a complete defence) against a debt in a Debt Relief Order.

Gem82

Hi,
I have just spoken with the National Debt Line as I have about £13,000 debt over a number of different sources (credit cards, Overdrafts and Loans).
From the end of this month my contract on my job is ending and I have only been able to secure a part time job. My debt was mounting each month as it was, now I will be bringing home half of my salary. We did a brief budget and I would qualify for a DRO. However I am hoping that in the next year I will secure more work or another full time job which would change my circumstances. But I will still struggle to pay back everything that I owe.

I am thinking a DRO would not be the best option for me, but I can't see an end to being debt free

And at some point I would love to be in a position to be able to buy a house. I am about to rent privately with my partner and I have no children at the minute.

What do people advise?

Thanks
Gemma