Debt Relief Orders (DRO) - Information & help thread

lukebetteralone

thanks for the reply.

hopefully they get the message

fatbelly

lukebetteralone wrote: »

they said because under the court it says not applicable to a debt relief order they're saying they can still ask for money

fermi wrote: »

They are either very stupid or are trying it on.

My vote is for very stupid.

cwmparc

My DRO was accepted on the 3rd jan. I have a nationwide overdraft (joint account). This was listed on the DRO but I have heard nothing from nationwide. The account is still open and o/d still in place.
My question is, is this normal?

fatbelly

cwmparc wrote: »

My DRO was accepted on the 3rd jan. I have a nationwide overdraft (joint account). This was listed on the DRO but I have heard nothing from nationwide. The account is still open and o/d still in place.
My question is, is this normal?

Technically they don't have to close an account. It's just that they cannot demand payment from or start court action against, you, during the moratorium. If your DRO is revoked during the 12 months, the debt would just revert to what it was. But at the end of the 12 months all correspondence should finish...with you.

Has the joint account holder declared insolvency? If not then contractual interest and charges can continue to accrue, and they are fully liable.

cwmparc

fatbelly wrote: »

Technically they don't have to close an account. It's just that they cannot demand payment from or start court action against, you, during the moratorium. If your DRO is revoked during the 12 months, the debt would just revert to what it was. But at the end of the 12 months all correspondence should finish...with you.

Has the joint account holder declared insolvency? If not then contractual interest and charges can continue to accrue, and they are fully liable.

Thanks, no the other person is not insolvent.

Do you think it is wise (or am I personally able)to continue to use this account?

fatbelly

cwmparc wrote: »

Thanks, no the other person is not insolvent.

Do you think it is wise (or am I personally able)to continue to use this account?

I don't think it's a good idea for either of you to have income being paid into this account. You should have new accounts with a different bank, and the joint holder needs to get in touch with Nationwide about clearing the debt.

It would have been better to have sorted this earlier, as the DRO will now be affecting the way banks view both of you.

cwmparc

fatbelly wrote: »

I don't think it's a good idea for either of you to have income being paid into this account. You should have new accounts with a different bank, and the joint holder needs to get in touch with Nationwide about clearing the debt.

It would have been better to have sorted this earlier, as the DRO will now be affecting the way banks view both of you.

Thanks for you reply.
We did open an alternative bank account, so that's not really an issue.
I just found it strange that nationwide hadn't been in contact with either of us.

Helpappreciated_2

Hi all, any help appreciated on this one!! I am currently in debt management and owe approach 18500,my dad is wanting to gift me 6k this April! If I pay that to my debt management it will bring me below the threshold for a dro, would I then be able to apply for a dro or would making a lump sum payment go against me? I have done the debt remedy on stepchange and if I have under 15k I meet all the criteria for a dro

Thank in advance as I really don't know what to do, going to phone stepchange in morning.

fatbelly

Helpappreciated wrote: »

Hi all, any help appreciated on this one!! I am currently in debt management and owe approach 18500,my dad is wanting to gift me 6k this April! If I pay that to my debt management it will bring me below the threshold for a dro, would I then be able to apply for a dro or would making a lump sum payment go against me? I have done the debt remedy on stepchange and if I have under 15k I meet all the criteria for a dro

Thank in advance as I really don't know what to do, going to phone stepchange in morning.

As Stepchange will be making payments pro-rata (near enough), you would not be viewed as making a preferential payment by giving them 6k to distribute.

Alternatively, as a third party can do what it wishes with its funds, your dad could just pay 3500 off one or more debts, and you would be under 15k in debt having done nothing wrong. Dad keeps 2500

Another option is that your dad pays £700 and you go bankrupt as you are. Dad keeps £5300

If you want a more difficult option (but one that might avoid insolvency) you offer settlement deals to your creditors knowing that you can go to 30%. If your credit history is important to you, and you have already been defaulted by your creditors then this would avoid a fresh black (DRO, bankruptcy) mark. Dad probably loses most of the 6k

Helpappreciated_2

Thankyou for your reply, I don't want bankruptcy as I work in a bank n I understand a dro isn't quite as serious? My credit file already has several defaults so that's shot anyway, I'm looking for a fresh start n hopefully one day will be able to pay dad back for the help! What evidence would I need to gather to apply for a dro? All my statements are online so I could start looking now for the figures! And what counts as an asset? Would I have to include TVs, iPhone etc?
Sorry for all the questions I just don't know where to start!