Debt Relief Orders (DRO) - Information & help thread

fatbelly

There are two questions, neither exactly relate to your situation.

1. In the past 2 years have you sold anything for less than it was worth?

2. In the past 2 years have you preferred one creditor over another?

In your situation I'd ask your intermediary to send you the barcode, get the £90 paid and then ask them to submit the application.

Woody667

ok thanks , that's quite helpfull.

Julia1984

Hello Everyone

6 months ago I was inflating my income on one of the credit card accounts online, increasing my limit up to £10000, and I have used 80% of this within few years, if i'll apply for DRO will the lender point this out before anything else? The Creditors didn't really ask me for my income or any docs, most of them do, so I was very surprised about it ...
THANKS
Julia.

fatbelly

Julia1984 wrote: »

Hello Everyone

6 months ago I was inflating my income on one of the credit card accounts online, increasing my limit up to £10000, and I have used 80% of this within few years, if i'll apply for DRO will the lender point this out before anything else? The Creditors didn't really ask me for my income or any docs, most of them do, so I was very surprised about it ...
THANKS
Julia.

Probably not

Wouldn't make any difference if they did.

You are just required to declare your income on the day the DRO is submitted. Previous history of higher or lower income is not relevant.

'Fraudulent debt' really only rears its head in relation to fraudulent benefit overpayments where the debtor has been found guilty in court or admitted it in an interview under caution or has accepted an administrative penalty

Julia1984

Ok, I thought that creditors are very strict about it, and taking customers to county courts for increasing credit limit without having this declared income in reality, and even going DRO few months after that, so don't want to end up in a prison for doing that...
Did anyone had that happend ever or similar..., as there are no proper and straight info on search engines..
thanks.

National_Debtline

Julia1984 wrote: »

Ok, I thought that creditors are very strict about it, and taking customers to county courts for increasing credit limit without having this declared income in reality, and even going DRO few months after that, so don't want to end up in a prison for doing that...
Did anyone had that happend ever or similar..., as there are no proper and straight info on search engines..
thanks.

Hi Julia


A couple of misconceptions here that it is important to set straight.


Nobody gets prosecuted in the county court - it deals with civil matters including those where one person/company wants to get their money back from another.


If a credit card company took you to the county court, it would be because they thought it would help them recoup their money. Trying to build and prove a case for fraud is a different matter altogether.


Dennis
@natdebtline

fatbelly

Julia1984 wrote: »

Ok, I thought that creditors are very strict about it, and taking customers to county courts for increasing credit limit without having this declared income in reality, and even going DRO few months after that, so don't want to end up in a prison for doing that...
Did anyone had that happend ever or similar..., as there are no proper and straight info on search engines..
thanks.

Search engines may lead you astray unless you know where the accurate info is.

We will give 'straight info' on this site as far as we can - but sometimes there is not a definite answer - only what is and isn't likely to happen.

If a DRO is your chosen option, go for it. You're not going to jail.

chickadee2014

Hiya after some advice please hope someone can help?

Would I be suitable for this order. I have debts of £13000 loan and credit cards.

However my cars worth £3000 and I have a student loan too.

Thanks in advance for your help

Flyright

You won't be eligible for a DRO with an asset of £3000. Student loans are not included in bankruptcy or DRO's.

fatbelly

chickadee2014 wrote: »

Hiya after some advice please hope someone can help?

Would I be suitable for this order. I have debts of £13000 loan and credit cards.

However my cars worth £3000 and I have a student loan too.

Thanks in advance for your help

Hi

Well we don't have full information about your circumstances but on the debt limit you would appear to qualify. Student Loans are excluded debts and so are not affected by a DRO, and do not contribute to the debt total, assuming this is a normal student loan from the Student Loan Company.

On the asset limits however, a 3k car would exclude you from the scheme as the car asset limit is 1k.

You should get a valuation from Parker's guide. This is free. The private poor value is OK. It may be worth less than you think.

I have never met anyone who downsized a car in order to get a DRO. If you are going to try that you need to be careful as the car must not be sold for less than it is worth, creditors must be treated equally and the other asset limit (cash etc) is 1k.

As a rule of thumb, cars depreciate about 30% per year.