Debt Relief Orders (DRO) - Information & help thread

iceblink

Well I guess tomorrow is my judgement day!

Paid my £90 yesterday and got the application submitted.. Dearly hoping my name is on the Insolvency Register tomorrow morning or I'm probably looking at one of the most agonising and stressful weekends of my life.

Couple of points are concerning me, this is definitely the worst part of the entire process.

Oh well, what will be will be.

maeeve

Hi, am i right in thinking then limit of debt has gone up to £20000 for DRO?
Thank you for your help

fatbelly

maeeve wrote: »

Hi, am i right in thinking then limit of debt has gone up to £20000 for DRO?
Thank you for your help

Ye, went up to 20k on 1 October, and the asset limit went to 1k.

amylnb

i hope someone can help me....not quite sure im in the right place.
basically i finished my debt relief order back in july 2015, i have decided this year i am going to attempt to sort my debts out, i have one outstanding debt of £100 but all others are paid/wiped off....basically i still have two debts on my credit file showing as defaulted, these were the two debts i included in my debt relief order, i have wrote to them both and ask for them to update the debts as i now no longer owe the money, i had a reply from one today stating that they would update my credit file but it would still show as default for the next 6 years, is this correct? im sure i read somewhere that they had to put the debt as settled or partially settled?? thanks

fatbelly

amylnb wrote: »

i hope someone can help me....not quite sure im in the right place.
basically i finished my debt relief order back in july 2015, i have decided this year i am going to attempt to sort my debts out, i have one outstanding debt of £100 but all others are paid/wiped off....basically i still have two debts on my credit file showing as defaulted, these were the two debts i included in my debt relief order, i have wrote to them both and ask for them to update the debts as i now no longer owe the money, i had a reply from one today stating that they would update my credit file but it would still show as default for the next 6 years, is this correct? im sure i read somewhere that they had to put the debt as settled or partially settled?? thanks

Yes, follow the process as for clean-up after bankruptcy, just change the wording to suit

https://forums.moneysavingexpert.com/discussion/677875

LEO83

yes that is correct they will still show as default but will also say settled or partially settled with a zero balance. they don't actually have to get rid of the default.

dragonfly2008

Hi everyone, I'm looking for a bit of advice. Past and current circumstances are complicated as they are difficult. But I have a question about 'Treating some creditors better than others' with regard to eligibility for a DRO.

I am on a DMP. I have a very small overdraft £100, and another small debt £300 (that is currently on a repayment plan directly with the company after they hounded me night and day). I didn't tell the organisation about either on my DMP. (I had reasons at the time, but thats that).

The thing is, my circumstances havent improved as quickly as I thought, and im probably better moving to a DRO rather than sticking with a DMP. I have been thinking to pay the overdraft, get rid of it. Pay off the second debt, then proceed with a DRO application. It will take some time to show these as settled ?. Theres no point applying for a DRO with these two as current is there with the organisation handling my DMP ?.

But the further i've looked into it, i've read the official receiver checks your credit report to check debts on the application are true. But when they do check it and investigate dates thoroughly, theyll see these additional two debts have been paid before my other debts, and as a consequence reject my application ?.

Is there any way around it ?. It feels like i cant do right for doing wrong now. If i pay them off, the officer receiver will see ive given them preference ?. Should i just include them in the DRO application ?. What if i can afford to pay the bank overdraft... i shouldnt pay it and get rid of it ?. SHould i submit the DRO with another organisation to who i am on a DMP with, to avoid this whole 'Why didnt you tell us thing ?.

Im not sure which way to approach it, need to get my head around it.

If not, im going to have to slog it out with the DMP for several years, despite being 'eligible' for a DRO, for the sake of £400 .

fatbelly

If you're going for a DRO stop paying everyone and put everything into the DRO.

You are allowed up to £1000 of savings and other assets so even if you can pay the small debts off there's no point.

At the moment there's no real preference issue (you have been making small payments to everyone). Who does your DRO is a matter for you to decide. Stepchange and CAB do most of them.

Of course you will need a new bank account unconnected to your debts

mshappy

Hi there my DRO was submitted today. What happens next how will I know if it's been granted?

In the process of opening 2 new accounts. 1 with natwest other with nationwide. Have account details for both just waiting for pins and cards etc

fatbelly

mshappy wrote: »

Hi there my DRO was submitted today. What happens next how will I know if it's been granted?

Your intermediary should hear tomorrow. You will be on the insolvency register the day after that and you will get a letter from the DRO Unit a day or so after that.

The letter is important so you must keep it safe.

Sometimes they have a bit of a glitch at the DRO Unit so don't panic if the timescale slips.