Debt Relief Orders (DRO) - Information & help thread

fermi

New Insolvency Service guidance factsheet

https://www.gov.uk/government/publications/getting-a-debt-relief-order/getting-a-debt-relief-order

fatbelly

fermi wrote: »

New Insolvency Service guidance factsheet

https://www.gov.uk/government/publications/getting-a-debt-relief-order/getting-a-debt-relief-order

New factsheet five weeks before the rules change? And no mention of the changes?

Spot the missing number from the sentence below:

You may not apply for another DRO for years from the date your DRO was approved.

No mention of fraudulent debts not being discharged at the end of the moratorium

No mention of a car being allowed up to £1k, homeowners excluded as gross value of assets count, not net.

Probably other things missing - I'll carry on linking to Debt Camel

http://debtcamel.co.uk/debt-options/dro/

louise_w1984

Hello everyone I am about to go forward with a dro but want to know has anyone had experience of what checks the insolvency service do once you have got the dro? do they request bank statements? its just I dont want them to question every single thing I buy using my bank account card and if they do ask for them id prefer to just use cash. not hiding anything but i sometimes make payments for my parents and they then give me the money, and dont want this to be questioned.

fatbelly

louise_w1984 wrote: »

Hello everyone I am about to go forward with a dro but want to know has anyone had experience of what checks the insolvency service do once you have got the dro? do they request bank statements? its just I dont want them to question every single thing I buy using my bank account card and if they do ask for them id prefer to just use cash. not hiding anything but i sometimes make payments for my parents and they then give me the money, and dont want this to be questioned.

The Insolvency Service can ask/check anything they want, but in practice the only check they do is an Experian credit check.

Provided your intermediary is happy with your application it should be accepted without problem and most DROs sail through the 12 months.

debtorwithaquestion

I'm only a month into my DRO, and I am certainly NOT looking to get any credit anytime soon but been thinking a lot about how to improve my credit rating after the DRO.

Is it best to build a relationship with ONE bank from now , rather than use multiple accounts. My thinking is by using one account and managing it well, after my DRO they will give me better overdrafts or credit cards in the distant future?

And I'm confused about the impact on my credit file. I'm well aware the DRO and defaults stay on credit file for 6 years from DRO date, but have seen people on here posting that as soon as they were discharged they got a bad credit credit card and slowly built it back up to a fair credit rating well before the six years was up.

I thought you would not even be considered for any kind of credit until the 6 year period is up?

Can someone clarify this ?

As my income is so limited, although the DRO has bought relief, I think about it everyday and money is always on my mind. I'm always looking at my budget and trying to be careful day to day but as I have no money to do anything, my days off seem to be filled with obsessing over money.

fatbelly

fermi wrote: »

New Insolvency Service guidance factsheet

https://www.gov.uk/government/publications/getting-a-debt-relief-order/getting-a-debt-relief-order

What I didn't realise until today is that the IS have replaced the old 'Guide to Debt Relief Orders' (a 20-22 page booklet with some useful info for applicants) with this rubbish.

All I could find on the net this afternoon was the old 2011 version and there used to be a May 2015 version - if anyone can point me to where it might now be I'd appreciate it.

LEO83

Sorry not been on for a while this is what I do I have my Santander one transfer everything to nationwide. Even get to use apple pay. My lloyds one is still open and I use that to pay bills like PayPal and eBay.

LEO83

Quite interested in this did they all stay open for you 😀

debtorwithaquestion wrote: »

So just a quick update on timescales / my experience which may be useful for others:

DRO fee paid at Post Office on Monday 3rd August 2015
Presubmission for me to check and sign emailed over Tuesday 4th August 2015
DRO Presub signed by me and emailed back
Submitted by my Intermediary on same day

DRO approved by OR on the Friday 7th August 2015
My name appeared on Insolvency Register this morning 8am Saturday 8th August 2015


TODAY: Recieve pins / cards for all my newly opened basic accounts - go to Barclays to try and set up online/mobile banking quickly before they find out about the DRO and already my account is restricted to basic banking.

I expected this because one of my debts is an old barclays overdraft. The bank would obviously therefore know but how quickly they found out is scary lol!

Also I confirmed with the DRO UNIT yesterday that as of the date of approval the banks rights of offset are nulled meaning that my new basic account with barclays cannot be touched at all even though one of my DRO debts is with barclays.

Ive chosen to use the new barclays basic account at the moment because it seems theyre the only bank who officially WONT close the account because of a DRO.

I will update and let you guys know what happens to :

Santander Current Account
RBS Current Account
NatWest Current Account

Halifax Basic Account
TSB Basic Acccount

Which I opened all before the DRO simply to prepare in case they all decide to close my accounts!!!!!!!

Sorry for the long post by the way- just hope the info helps some others who did what I did for the past three months- speculated about EVERYTHING to do with my DRO

debtorwithaquestion

Hey well here is an update:

NatWest (with whom I had a contactless card but no o/d or debt with) - they downgraded me to a basic account without contactless.

Santander left my full current account open.

TSB GAVE me a full current account despite the DRO on my credit file at time of app.
RBS also gave me a full current account after DRO went through WITH a contactless card?!

Halifax, Barclays, Nationwide were all basic accounts and have also remained open.

SO- no accounts closed... only NatWest downgraded and I have a full current account with a contactless card. For now I dont know if I should close the others or leave open...:rotfl:

fatbelly

fatbelly wrote: »

3. Use the other bank account. If it's Nat West it will be downgraded to a basic account but with other banks there should be no issues.

As I predicted, then