Debt Relief Orders (DRO) - Information & help thread

jenniewb

Does anyone know the answer to this?

(DRO filed for £250, I then get a letter saying a cheque for £50 that went through was over my overdraft limit which is £250)

Will they claw back the money from the cheque (and its charges) as its over the amount I put on the DRO form or am I covered?

I am really confused about this as I submitted the info to the best of my knowledge but yet these transactions were additional- I did check the hour before I submitted but these extra payments had not then gone through.

Sorry for being really inpatient- I am really worked up about this!

debt_doctor

Hi,

It is vert important to make sure the balance is an up to date one. My advice is to OVER ESTIMATE your balances so long as you are well within the 15k limit.

In your case, as you checked an hour before and everything was ok then you can argue their inclusion. Write to the DRO unit if you get further hassle about those particular charges, if not then just leave it alone.

DD

debt_doctor

Hi, this is from a trusted colleague who is now outside of the CAB service, but still in the not for profit sector..........



hiya,

went to NEDF in Sheffield t'other day and thought the following may be of use to you: (although you probably already know all this, you big intermediaries you!)

There have been 1031 DROs to date and only 12 have been rejected. CABs have completed 781 of the current DROs.

There have been no rejected DROs for preference to date and the main reasons for exclusions have been:
· Experian reports not matching order details (houses, spouses etc) as we are supposed to fix these for client after getting Experian report if they are not up to date.
· Money owed to client which, while completely unrecoverable, is counted as an asset.
· undisclosed assets
· variations around the above theme.

Creditors do not get any of the I&E information, only a breakdown of creditors.

there have been so many problems with the DRO creditor page that they have let some clients add creditors where it was likely to be a software fault that they were not included.

Best guess levels with an increase on last known balance to allow for interest and fees are acceptable where actual figures have not been obtainable.

A 'common sense' approach is being taken to preference and much like in Bankruptcy if there does not appear to have been a significant or deliberate preference and no material difference to the debts has been made than we do not have to tick the box.

A common sense approach to I & E is being taken with our experience as advisers being trusted to make an accurate assessment of the income and expenditure. This point was made by XXX XXXXXX (your competent authority woman) in response to an adviser mentioning splitting the financial statement to only show the DRO partners surplus… I though this was in contravention of the shady guidance, but she seemed confident.

DD

kaylouise

I'm thinking I might have to try for a DRO - my debts are only £4.5k but at the rate I'm repaying on my DMP it's currently going to take until 2017, and getting longer all the time because the creditors are still adding more interest on than I'm paying back!
The only problem is my car, which technically isn't mine as the finance doesn't end until 2011, but becuase is a 2003 reg is worth more than £1000. I can't get rid of it or I couldn't travel to work, but if I did I would have to (a) change it for another car which would mean getting finance while on a DMP and risk making the situation worse or (b) increasing my money leftover to more than £50 a month, so I no longer qualify for DRO. I'm so confused, I didn't think it would count since I don't it, but I just can't afford full bankruptcy. I'm stuck. Help!

markbass

What would happen if you left out lets say.....2k of housing benefit and council tax overpayment's on the DRO application and just put down your loans and overdrafts that would coincide with your credit report?...i mean surely sometimes people forget to include debts they should have!!

It would still go through wouldn't it?

philnicandamy

markbass wrote: »

What would happen if you left out lets say.....2k of housing benefit and council tax overpayment's on the DRO application and just put down your loans and overdrafts that would coincide with your credit report?...i mean surely sometimes people forget to include debts they should have!!

It would still go through wouldn't it? Nope.....ONLY the debts listed will be wriiten off. If a debt comes to light that pushes over the 15k limit then the order will be revoked.

markbass

philnicandamy wrote: »

markbass wrote: »

What would happen if you left out lets say.....2k of housing benefit and council tax overpayment's on the DRO application and just put down your loans and overdrafts that would coincide with your credit report?...i mean surely sometimes people forget to include debts they should have!!

It would still go through wouldn't it? Nope.....ONLY the debts listed will be wriiten off. If a debt comes to light that pushes over the 15k limit then the order will be revoked.

No what i actually meant was if i purpously left of the benefit overpayment, so as my debts(loans and overdraft) then fit within the 15k limits...how would they know i'd left out the benefit overpayment, it's not like it would be on my credit report!

philnicandamy

But why would you intentionally leave something off just so you'd fit in under the 15k limit? if your struggling to pay what you have now? if its left off then you still have to pay the creditor

markbass

philnicandamy wrote: »

But why would you intentionally leave something off just so you'd fit in under the 15k limit? if your struggling to pay what you have now? if its left off then you still have to pay the creditor

Well to be honest with you, i don't fancy losing my car (DRO will let you keep a car under £1000), i'd rather pay £90 than the £500 for bankruptcy(although i'd get £150 off for court fee's because of benefits), i would probably have to pay the benefit overpayment throughout the duration of the BR anyhow from what i've read on the matter in here, and from what i have also read DRO's although have similar restrictions to BR arn't as severe, IE: bank accounts not frozen, not listed in local press, no indepth investigation from OR's...just to mention a few...i might be wrong on a few points there and to be honest i'm in the balance as to what to go for, my heads full of it at the moment, the only thing with a DRO is the £50 a month it only allows you to have if circumstances change, but i'd gladly take a minimum wage driving job for 12 months to keep in line with that...i just don't know...see how mixed up my mind is at the moment...lol

fatbelly

markbass wrote: »

Well to be honest with you, i don't fancy losing my car (DRO will let you keep a car under £1000), i'd rather pay £90 than the £500 for bankruptcy(although i'd get £150 off for court fee's because of benefits), i would probably have to pay the benefit overpayment throughout the duration of the BR anyhow from what i've read on the matter in here, and from what i have also read DRO's although have similar restrictions to BR arn't as severe, IE: bank accounts not frozen, not listed in local press, no indepth investigation from OR's...just to mention a few...i might be wrong on a few points there and to be honest i'm in the balance as to what to go for, my heads full of it at the moment, the only thing with a DRO is the £50 a month it only allows you to have if circumstances change, but i'd gladly take a minimum wage driving job for 12 months to keep in line with that...i just don't know...see how mixed up my mind is at the moment...lol

Mark - the vast majority of DROs at the moment are being done through the CAB. Go and have a chat to your local bureau and see if they have an approved intermediary who can take you on as a client and work through these things with you.