Debt Relief Orders (DRO) - Information & help thread

National_Debtline

Hampshire345 wrote: »

there is no specific reason I wanted to speak face to face.

at the moment I am still waiting for the information about my new bank account and my credit file to be sent to me

also how many month's bank statements would I need to provide?

Hi Hampshire

Sorry for the slow reply to your query.

For our applications we ask for one bank statement - it must be (a copy of) your most recent one.

Regards

Dennis
@natdebtline

MTF_2

Hi,


I have recently been made redundant and will shortly be eligible for a DRO,

I share a house with 3 others, they all pay rent to me and I pay the total of the rent plus all bills out of my account. I roughly know what this adds up to and can work out my own rent cost by this.

When dealing with my advisor will this be a problem because I have funds being transferred through my account in way of my housemates rent payments?

I am planning on having everything changed over to a different account at the same time as doing my DRO so that I am no longer in that position where it is me responsible for ins and outgoings, clearly not very good with money as I am in this situation.

Also I will be receiving a redundancy pay. I would like to give this to my family as they have lent me equivalent over the last few years, will that be seen as an issue with my application?

Am planning to visit my local CAB tomorrow but from reading it looks like many apply via telephone.

Thanks Guys. Excited about this opportunity that I can finally get rid of the burden of debt.

wba31

MTF wrote: »

Hi,


I have recently been made redundant and will shortly be eligible for a DRO,

I share a house with 3 others, they all pay rent to me and I pay the total of the rent plus all bills out of my account. I roughly know what this adds up to and can work out my own rent cost by this.

When dealing with my advisor will this be a problem because I have funds being transferred through my account in way of my housemates rent payments?

I am planning on having everything changed over to a different account at the same time as doing my DRO so that I am no longer in that position where it is me responsible for ins and outgoings, clearly not very good with money as I am in this situation.

Also I will be receiving a redundancy pay. I would like to give this to my family as they have lent me equivalent over the last few years, will that be seen as an issue with my application?

Am planning to visit my local CAB tomorrow but from reading it looks like many apply via telephone.

Thanks Guys. Excited about this opportunity that I can finally get rid of the burden of debt.

With regards to peoples contribution to the rent going through you, no issue, the easiest way to list this is the total contributions paid to you as income, total rent in expenditure.

With regards to paying off your family, this is not a good move. All debts, included debts to family, must be treated the same. so paying the family a sum of money would be frowned upon, as it would be seen as a preferential payment. i wouldnt do anything with the redundancy until you receive advice from your CAB on what to do with it

Hampshire345

I have now received my new card, pin and account details for my new nationwide account, and I phoned up my citizens advice bureau last week and have an appointment to see the debt advisor on the 6th may, they have also sent me the forms that I need to fill in aswell

Hampshire345

I am slightly stressed at the moment, I have had to use my 2 credit cards this month so that I could save up the £90 for the dro, I have only spent a bit on them and have not gone crazy. I have tried to make a payment to one of the cards and it would not let me pay the amount online as it would only accept the minimum payment or above(minimum payment of 55), I was able to make a payment to my other credit card, I also paid £5 each on my catalogue and store cards.

I have not spent on the store card or catalogue and have only moderately spent on the two credit cards

even making the small payments i have made today was difficult.

I will not use the credit cards again and have now cut them and the store card into pieces

would this be a problem for my dro application?

National_Debtline

Hi again Hampshire

In theory, a creditor could object to your DRO if their facility was used just prior to the application. In practice, these objections tend to be rare.

The other issue to highlight is that your recent payment(s) on the credit card could be treated as a "preference" of one creditor over others. Small amounts and minimum payments are less likely to fall into this category. Such preferences would be highlighted in the application sent to the Insolvency Service for approval and it would then be up to them to decide whether to approve the application or reject it. Your £90 fee would have been paid by then at your risk and would not be refunded in the event of a rejected application.

That all said, I don't think I'd let the issues you've mentioned stop you from making the application. The intermediary you deal with will explain to you in greater detail any potential sticking points. You can't undo what's been done so best to focus on the CAB appointment now.

Good luck

Dennis
@natdebtline

Hampshire345

National_Debtline wrote: »

Hi again Hampshire

In theory, a creditor could object to your DRO if their facility was used just prior to the application. In practice, these objections tend to be rare.

The other issue to highlight is that your recent payment(s) on the credit card could be treated as a "preference" of one creditor over others. Small amounts and minimum payments are less likely to fall into this category. Such preferences would be highlighted in the application sent to the Insolvency Service for approval and it would then be up to them to decide whether to approve the application or reject it. Your £90 fee would have been paid by then at your risk and would not be refunded in the event of a rejected application.

That all said, I don't think I'd let the issues you've mentioned stop you from making the application. The intermediary you deal with will explain to you in greater detail any potential sticking points. You can't undo what's been done so best to focus on the CAB appointment now.

Good luck

Dennis
@natdebtline

I fully intend to apply for the dro,
I only made small payments to the creditors recently, I would have also have made a payment to my other credit card but could not as they would not accept it, if I had of paid the minimum payment to my second credit card at £55 then that would look like preferrential treatment to me as it would be double what I paid my other credit card

by the time I see the advisor it will be 3/4 weeks since I last used my credit cards

I told my credit card provider that I was experiencing financial difficulties and their reponse was to increase my credit card limit by £1,000 and they also suggested I apply for more credit.:eek:



If my dro was rejected what would be the best option for me?

LondonGal

To avoid temptation, why not cut any credit cards which are not interest free into lots of pieces. Even the interest free ones should be cut up really. I know this is harsh, but I did it when I was in your situation and I've never had one again since.

Hampshire345

I have my appointment with the CAB tomorrow,

will they accept an experian report from early april or will they want another newer report?

fatbelly

Hampshire345 wrote: »

I have my appointment with the CAB tomorrow,

will they accept an experian report from early april or will they want another newer report?

I'd be happy with it. But if there was another reason why we were going to have to wait a few weeks before submitting the DRO, I might do a fresh one.