Debt Relief Orders (DRO) - Information & help thread

fatbelly

I'm booked up about that far ahead as well.

If you want to really impress, get a copy of your Experian report (statutory £2 will do, takes about 5 days)

http://www.experian.co.uk/consumer/statutory-report.html

Apart from that, take the latest letter for each debt. She will need to see balance, creditor address (if it's an unusal one) and a reference number. Some proof of earned income and any benefits you are on. Car registration number.

You definitely need a bank account unconnected with your debts, as I said before.

The interview will look at your income (can they increase it?), your expenditure (can it be reduced) and your debts. If she's organised she might generate the barcode letter and start the application in the interview, so you can start making payments on it

Pickles112

I got a copy of my credit report from noddle, is that any good?
So do I just take my wage slips & tax credit award letter? Do I include partners wage slips?
I don't think I have any recent letters of some debts.. do I call them and explain and ask for the reference number?
Will they use the form i done there today?
Sorry for all the silly questions I just want to get it right first time and get it all rolling hopefully! Thank you.

fatbelly

There might be some useful info on the Noddle report but the requirement is that the intermediary gets an Experian report.

As for what to take, the rule is ... if in doubt, take it.

In order to enter a debt on the online form they will need: balance, creditor address (if it's an unusual one) and a reference number. I like the 'latest letter' method as I can just photocopy them.

kbskylady

My DRO expired on 18 October 2014, however I discovered on Noddle a month ago that 4 former creditors still believe I owe them money. None has chased me for the past 2.5 years, which surely means they know the DRO was satisfied. (Each was contacted when DRO was granted). Date of DRO satisfaction shows on my report, but despite raising disputes via Noddle they have all been rejected. As the DRO expired over 3 months ago I can't copy and send proof to the creditors from the Insolvency register, I don't have a copy of my original DRO notification (mislaid) and have had to contact the Insolvency Service for advice. I'm currently awaiting their response. So remember to check your credit profile on Noddle or elsewhere as soon as your DRO has expired, as you too may find not all creditors have accepted the DRO and will therefore need to take action if you don't want a really bad credit score following you around.

fatbelly

kbskylady wrote: »

My DRO expired on 18 October 2014, however I discovered on Noddle a month ago that 4 former creditors still believe I owe them money. None has chased me for the past 2.5 years, which surely means they know the DRO was satisfied. (Each was contacted when DRO was granted). Date of DRO satisfaction shows on my report, but despite raising disputes via Noddle they have all been rejected. As the DRO expired over 3 months ago I can't copy and send proof to the creditors from the Insolvency register, I don't have a copy of my original DRO notification (mislaid) and have had to contact the Insolvency Service for advice. I'm currently awaiting their response. So remember to check your credit profile on Noddle or elsewhere as soon as your DRO has expired, as you too may find not all creditors have accepted the DRO and will therefore need to take action if you don't want a really bad credit score following you around.

Noddle often seems to contain wrong information - presumably this is why the credit industry doesn't make much use of them. Are Experian and Equifax both OK?

SLZ

I've been looking at a DRO or an IVA (depending on what happens job wise) but with a DRO, if I were to go down that route, my understanding is that if in a year or two I get a better job that pays more (at the moment it's bleak) then I'd be asked to pay more money back and still have the huge negative of a DRO on my file whereas if I just struggle to pay (but pay), I can keep profile intact and hopefully pay it off better in a years time.

I'm also concerned that my partner's income would be taken into account as for all intents and purposes we're separate aside from shared household bills. She earns significantly more than I (now anyway) and I wouldn't want to screw her over with whatever choice I make.

Any input?

fatbelly

SLZ wrote: »

I've been looking at a DRO or an IVA (depending on what happens job wise) but with a DRO, if I were to go down that route, my understanding is that if in a year or two I get a better job that pays more (at the moment it's bleak) then I'd be asked to pay more money back and still have the huge negative of a DRO on my file whereas if I just struggle to pay (but pay), I can keep profile intact and hopefully pay it off better in a years time.

That's mostly wrong. A DRO stays on your credit file for 6 years, as do defaults, as does an IVA. But as long as you do not breach the DRO eligibility criteria during the 12-month moratorium (and I guess you're looking at the £50 per month max surplus income) then the debts are written off at the end of that period - they don't come back.

SLZ wrote: »

I'm also concerned that my partner's income would be taken into account as for all intents and purposes we're separate aside from shared household bills. She earns significantly more than I (now anyway) and I wouldn't want to screw her over with whatever choice I make.

Any input?

Her income is not counted towards your surplus but your intermediary will want to know what she brings in so they can allocate household expenditure fairly.

I'm not sure why you would be considering a DRO or IVA (presumably as a non-homeowner owing <20k whose surplus income may be <> £50) but don't mention bankruptcy. What's the reason for that?

Are you sure a debt management plan wouldn't suit you better?

kimplus8

Following this thread- applying for DRO through the money advice service and now having second thoughts and thinking I should save up and go with bankruptcy, I'm scared as I'm not able to fine definite amounts for what I owe that I may be either over threshold without knowing and/or debts will get missed and not be included.

fatbelly

kimplus8 wrote: »

Following this thread- applying for DRO through the money advice service and now having second thoughts and thinking I should save up and go with bankruptcy, I'm scared as I'm not able to fine definite amounts for what I owe that I may be either over threshold without knowing and/or debts will get missed and not be included.

If you are over the 20k limit then you do need to research bankruptcy, which is now easier to access and the £655 fees can be paid by credit or debit card. The info is in this thread though it is a long one as it covers the period leading up to the change 2 months ago.

https://forums.moneysavingexpert.com/discussion/5400026

Remember when counting your debt figures that some debts are excluded and so do not count to the total: magistrate court fines, student loans, csa arrears, social fund debts. TV licence arrears are not a debt.

I understand the logic of going for bankruptcy if you cannot identify all your debts but, for most people, the advantages of a DRO make it worth putting a bit of effort into seeing if you can get an accurate list.

I didn't know MAS did DROs - they're not on the list of 'Competent Authorities' - are you using a MAS-funded intermediary at Citizens Advice maybe?

welshy9

Hi all. Opinions/advice needed. Have a situation where I am hoping to apply for a DRO. However, I live with my husband who owns our property (married when bought it). He supplied the deposit, pays the mortgage from his account and has paid for any work needed. It is in my husbands name as he had the deposit and me being on the mortgage meant we could not obtain one - Broker arranged this for us. We have a daughter together. I have had different views from NAD and Stepchange. NAD stated they would proceed with the application but could not as they were not taking on any applications due to a backlog. StepChange said they would not submit the application due to their being a beneficial interest to me even though I do not own it and therefore it would been as my asset. I have also received information from the Insolvency Service who were puzzled as to why I wasn't on the mortgage (we wouldn't have got one if I was) and stated it was up to each individual intermediary.

Does anyone have any experience of this?

Debt in my name only £7404. My husband and I have separate accounts. I pay majority of bills and he pays the mortgage and council tax.

Thank you in advance