Debt Relief Orders (DRO) - Information & help thread

wba31

Helpappreciated wrote: »

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!

Assets would be non-essential items of considerable value, antiques, latest mobile or tablet, MASSIVE tv, etc. or car if worth more than £1000.

I agree with fatbelly in not spending all of your dad's £££. Strictly speaking in the DRO you could not owe your dad the £££ back, it must either be a gift or a loan which is included... Why not speak to your employer to find out if bankruptcy would affect your job? DRO is still insolvency so may be looked at the same as bankruptcy by some employers...

Helpappreciated_2

He is willing to gift me the money out of what would have been my inheritance, I just don't want it to go against me! Hopefully it won't just about to ring step change and find out

longtermplanner

You might talk to StepChange about whether a Single Payment IVA would be appropriate in your circumstances. These are unusual but one might work for you, see http://debtcamel.co.uk/debt-options/iva/.

fatbelly

longtermplanner wrote: »

You might talk to StepChange about whether a Single Payment IVA would be appropriate in your circumstances. These are unusual but one might work for you, see http://debtcamel.co.uk/debt-options/iva/.

That was in the back of my mind too!

So all three insolvency options on the table, the OP needs to check how they would affect job/career.

Helpappreciated_2

What a single payment iva?? I have 5k coming in a few weeks not 6k like I thought! Any suggestions on my best course of action? I cuerrently owe 18632! I have spoken with stepchange and I can't just pay it then like I thought and I can't apply for a dro for 6 months as it would look like a had given some creditors preference over others! Soo confused now I just want to sort myself out

longtermplanner

A single payment IVA is just what it says. Instead of making payments for 5 years, you make one payment at the start. This would only work if someone else is making the payments (ie your lovely dad in your case) AND if you cant afford to pay more than a really small amount to your debts each month, which I assume is your situation if yiou are thinking of a DRO.

It's like a F&F offer to your creditors except it is binding on them all if enough vote for it.

Have a look at the link I gave. At the bottom of that are some links to IVA promoting sites. This is a bit unusual so you might want to post about it on one of those? You nee to be REALLY clear that you have money on offer now AND your other option is bankruptcy as you cant afford more than token repayments. It's worth exploring. Even unusual debt options are suitable for some people

longtermplanner

PS tell your dad NOT to give you this money until you know exactly how you are going to use it. It is of more 'use' to you if it is a potential 'carrot' you can dangle in front of creditors to get them to agree to something.

Helpappreciated_2

Thankyou I have done and I don't think they will except it but i will give it a try! Failing that it looks like the dro route if work will let me stay! I am looking into everything before I accept any money as with what stepchange have advised me today I may not benefit in accepting the money as making token payments will most like incur hefty interest charges and take me back over the 15k limit!

fatbelly

Helpappreciated wrote: »

What a single payment iva?? I have 5k coming in a few weeks not 6k like I thought! Any suggestions on my best course of action? I cuerrently owe 18632! I have spoken with stepchange and I can't just pay it then like I thought and I can't apply for a dro for 6 months as it would look like a had given some creditors preference over others! Soo confused now I just want to sort myself out

Helpappreciated wrote: »

Thankyou I have done and I don't think they will except it but i will give it a try! Failing that it looks like the dro route if work will let me stay! I am looking into everything before I accept any money as with what stepchange have advised me today I may not benefit in accepting the money as making token payments will most like incur hefty interest charges and take me back over the 15k limit!

It sounds like the conversation with Stepchange has not helped. The question on the application relating to preference is 'Have you preferred any creditors over others in your payments in the last 2 years?' So the fact that they mention 6 months makes me think that you spoke to someone who does not understand DROs.

The first question you need to resolve is: What effect will insolvency have on my job/career?

Then, does this differ between bankruptcy, IVA and DRO?

Can we assume that your dad understands your position and is prepared to hold on to his 5k until you have worked out the best strategy?

Helpappreciated_2

That's what I thought, if I paid off some little creditors then in 6 months applied I would still have shown a preference! I think I will have to ring back today an speak to someone else as I really need to get the ball rolling! As for work I am ring them on Monday to see how it will effect me! I'm only part time and finding another job will be easier than struggled with the debt I have growing! Only thing is I just don't know how to make payments to the creditors to seem fair!