Debt Relief Orders (DRO) - Information & help thread

immcrater

Thede debt relief orders are awesome

DavidP24

I think they are great too, but I think the limit should be raised to above £250k and above that position Bankruptcy. I know there is not a lot of difference to some but Bankruptcy was always considered a serious thing, yet these days it seems common.

People get into all sorts of debt, mostly because it is lent to easily by credit card companies who are insured or gambing companies. The cost barrier for Bankruptcy is a major hurdle for people in debt, they are then subjected to bailiffs and so called high court wannhkers. Surely the sooner they get the debt written off the better for all.

A friend of mine is seriously considering a DRO, do they have to declare their children's savings?

They also have a holiday booked later this year (paid for by parents who retired abroad) , would they still be able to take that, they have a few hundred saved for spending money?

Are bank accounts frozen as they are with a Bankruptcy?

Do they have to show wage slips and bank statements or just make a declaration of income and outgoings?

fatbelly

DavidP24 wrote: »

IA friend of mine is seriously considering a DRO, do they have to declare their children's savings?

They also have a holiday booked later this year (paid for by parents who retired abroad) , would they still be able to take that, they have a few hundred saved for spending money?

Are bank accounts frozen as they are with a Bankruptcy?

Do they have to show wage slips and bank statements or just make a declaration of income and outgoings?

Hi

Assets in the name of a child would not need to be declared, though it is possible the history would be looked at to see if capital was being deliberately diverted to fit the criteria for a DRO.

There's nothing to stop you taking a holiday and assets (incl savings) of up to £1000 are now disregarded.

Bank accounts are not routinely frozen - unless they are overdrawn and therefore debts they do not get a mention in the application. Having said that, Nat West are known to trawl the register and downgrade people's accounts to basic ones.

The DRO team themselves do not routinely require proof of anything, though can ask for it if they want. The Intermediary will require proof - though the precise details of what they require will vary depending on the organisation's own policy. At the end of the day it is a declaration by the individual and they should be open and honest about their situation.

DavidP24

fatbelly wrote: »

Hi

deliberately diverted to fit the criteria for a DRO.

The DRO team themselves do not routinely require proof of anything, though can ask for it if they want. The Intermediary will require proof - though the precise details of what they require will vary depending on the organisation's own policy.

THANKS for your help!

She has her own bank accounts with two banks,

She transfers disability money to child account every month to cover paying for their needs.

I think she said she transfers Child Benefit for all her kids and the disability to her 2nd account and then from there (because same bank and they were savings accounts) to kids accounts. I do not know if that counts as diverting. She has no overdrafts or credit cards, just this old CCJ that keeps getting chased.

What is the criteria, the debt is £15k ish I think plus 8% added per annum

She is on a low income and will never have the money to pay this off, would that meet the DRO criteria?

What Proof do they require?

fatbelly

Basic Criteria for a debt relief order :

• Must not be a homeowner,
  
• Debts less than £20,000,
  
• Can have a car worth up to £1000,
  
• No other assets of more than £1000,
  
• Must have £50 or less left at month end, after all essential payments have been made (not inc debt repayments),
  
• Cannot have had a DRO in last 6 years.

Already covered the other points, I think.

DavidP24

What Proof do they require?

Sam090884

Hey guys just looking for some advice, I have submitted and application with PayPlan should get a phone call within 48 hours from today, just wondering how long it takes for a DRO to come through had bailiffs kocking on the door last week non payment of council tax that my ex partner didn't pay so he's got and IVA so basically untouchable so I've been lumped with it,

sourcrates

Sam090884 wrote: »

Hey guys just looking for some advice, I have submitted and application with PayPlan should get a phone call within 48 hours from today, just wondering how long it takes for a DRO to come through had bailiffs kocking on the door last week non payment of council tax that my ex partner didn't pay so he's got and IVA so basically untouchable so I've been lumped with it,

Once submitted, can be approved within as little as 48 hrs.

Depends how busy the DRO unit is.

fatbelly

Sam090884 wrote: »

Hey guys just looking for some advice, I have submitted and application with PayPlan should get a phone call within 48 hours from today, just wondering how long it takes for a DRO to come through had bailiffs kocking on the door last week non payment of council tax that my ex partner didn't pay so he's got and IVA so basically untouchable so I've been lumped with it,

Just lately it seems to have slowed down - my last one took 5 days. This may be something to do with DRO2. There are now two routes to submit an application but DRO1 is closing to new applications this month so it should speed up again.

Hopefully your Payplan intermediary will phone you when the email comes through. But it's worth checking the insolvency register as you will appear on that the following morning, which will probably be before you get the confirming letter.

DavidP24

Sam090884 wrote: »

Hey guys just looking for some advice, I have submitted and application with PayPlan should get a phone call within 48 hours from today, just wondering how long it takes for a DRO to come through had bailiffs kocking on the door last week non payment of council tax that my ex partner didn't pay so he's got and IVA so basically untouchable so I've been lumped with it,

Wow, I thought a DRO was for a debt you were unlikely to ever be able to pay, what happens with next year's council tax.

I would have thought you could go to Council explain to them that you were not involved in bill at stage of action, but I imagine there were letters you ignored.

I also thought IVA was for debt up to £7k so you could have had that and made a contribution no matter how small, (no point in giving you a debt you can't afford).

They may reject your DRO on the basis that you can afford to service the debt.