Debt Relief Orders (DRO) - Information & help thread

sourcrates

LT1001 wrote: »

I have had time to do more research and if I am correct I have to include this years CT as I have lost the ability to pay by instalments, which is a kick in the proverbial as without that included on the debt list I would be comfortably under 20k.

Would I still be eligible for a DRO if I put all my effort into reducing the outstanding council tax arrears (as it is a priority debt) to the point where I'm under 20k? I know the cost of doing this is almost the same as applying for bankruptcy but I understand that's far more complicated than a DRO.

Yes, as a priority debt you could not be accused of favoring one creditor over another.

In reality a DRO is very simple to set up, and is far less invasive than bankruptcy, there are no interviews or regular checks to be made, its a much simpler process.

I think you have the basis of a good plan.

LT1001

Thanks, stress is driving me insane. I had 1 heart attack already don't really fancy another.
So the new plan is pay down the priority debt and get under the threshold then apply for DRO

fatbelly

Make sure you're not counting any excluded debts (child support, student loans, social fund, tv licence)

And if you can show that any of those older debts are statute barred, they don't need to be included either - really needs a letter from the creditor admitting that.

Sam090884

Hi guys after a bit of advice
Thinking of going back to College to retrain to help further my career options,
DRO came through in April I might need to take out a advanced learner loan( like a student loan)to help pay for it will this be allowed?

fatbelly

Sam090884 wrote: »

Hi guys after a bit of advice
Thinking of going back to College to retrain to help further my career options,
DRO came through in April I might need to take out a advanced learner loan( like a student loan)to help pay for it will this be allowed?

Do you know if there's a credit check for one of those?

I'm guessing there isn't, and you'd be OK.

Sam090884

Hi fatbelly,

I don't think there is a credit check. Thankyou,

so nice now not having to worry about bailiffs thanks to my moron of an ex.

x__Indigo_x

LT1001 wrote: »

I have had time to do more research and if I am correct I have to include this years CT as I have lost the ability to pay by instalments, which is a kick in the proverbial as without that included on the debt list I would be comfortably under 20k.

Would I still be eligible for a DRO if I put all my effort into reducing the outstanding council tax arrears (as it is a priority debt) to the point where I'm under 20k? I know the cost of doing this is almost the same as applying for bankruptcy but I understand that's far more complicated than a DRO.

a third party can also pay the council tax debt off and this will not class as preferential . May not be feasible but just an idea

KatieShopstoomuch

I thought I would pop on this thread and say hello! As I have been lurking I have battled with debt on and off for several years clearing it - getting more - never learning my lesson! I am now at the stage of applying for a DRO, slightly disappointed in myself but really praying it will go through so I can have a fresh start.

fatbelly

KatieShopstoomuch wrote: »

I thought I would pop on this thread and say hello! As I have been lurking I have battled with debt on and off for several years clearing it - getting more - never learning my lesson! I am now at the stage of applying for a DRO, slightly disappointed in myself but really praying it will go through so I can have a fresh start.

Keep us updated.

KatieShopstoomuch

Can I ask - I have sent all the paperwork to stepchange - Will they contact me once they have checked it all or can I call them if I have questions about it?

Thanks