Debt Relief Orders (DRO) - Information & help thread

fatbelly

A DRO is for personal debts and confuzzled says the debts are personal, not business.

If any of the debts are joint, then the liability transfers to the other party, but the way I read it they were his personal debts.

I'm not aware of any mechanism by which a DRO would affect a partnership business - presumably there would be something in the Insolvency Act?

Pattie94

Hi, I have my barcode ready and will be making the payment tomorrow and seeing cab on Friday to get the application submitted. My question is, I just realised that I might owe some money to my previose employer as I had some underhours before my maternity leave and I never returned to work. They haven't let me know officially if I owe anything and I am not sure when I will find out. What will happen if the company ask me for money back once Iam on DRO? Thank you.

fatbelly

Pattie94 wrote: »

Hi, I have my barcode ready and will be making the payment tomorrow and seeing cab on Friday to get the application submitted. My question is, I just realised that I might owe some money to my previose employer as I had some underhours before my maternity leave and I never returned to work. They haven't let me know officially if I owe anything and I am not sure when I will find out. What will happen if the company ask me for money back once Iam on DRO? Thank you.

It won't have any effect on the DRO, nor will the DRO have on it.

However, unless it is essential that you do your DRO immediately, why not wait until you know what the debt is and put it in.

Pattie94

Thank you. Is it still ok to wait even if I have the barcode?

fatbelly

Pattie94 wrote: »

Thank you. Is it still ok to wait even if I have the barcode?

I believe the barcoded letter under DRO2 says you should complete your payments within 6 months.

They also said this under DRO1, but never applied it, and eventually removed the wording.

But if your intermediary submits the application then it fails if payment isn't completed in 10 days.

sourcrates

Amy13 wrote: »

Hi guys, I'm thinking about applying for a DRO but have some questions/queries before I speak to a professional.

1 -
I successfully completed an IVA on 28th October 2011 (almost 6 years ago) and still have the paperwork to confirm this and am wanting to know if I can apply for a Debt Relief Order now.
The information I've seen online seems confusing... you can't apply for DRO if you have had one in the past 6 years or are currently in an IVA/Bankruptcy but what about an IVA in the past 6 years???
Would I need to wait for the 6 year mark before I can continue will an application? Also, I am aware that yes, I was in debt, sorted my life out and then got back into debt so I do feel embarrassed and ashamed but I am not in as much debt as I was before the IVA and would really like a fresh start to put this behind me once and for all.

2 -
I have read that you are not contacted when the 12 months has finished. Do they contact you to find out if your circumstances have changed and ask if you can pay towards the debts? I work full time and will receive an annual pay rise (won't be much though!) plus the tax code changes in April so will be paying a little less tax then. I would hate to go through 12 months of not paying creditors and for interest and charges to be added and for the DRO to fail after 12 months. Also, do you get a Certificate of Completion which you can show to creditors if they demand money after 12 months?

3 -
I have 2 Creditors which are Barclaycard and Vanquis, Credit Card debt. I owe £8300 in total. I am up to date on payments, have just paid my minimum payment on both accounts. Every month I have paid the minimum and the amount gets added back in interest so the debt is not going down in any way. I have spent credit on both accounts after making payments and when the interest has been added this has taking me over the credit limit. Would my application be affected if I have spent credit on these accounts and at what stage would I stop making the minimum payments? I am wanting to keep phone calls/letters/visits from my creditors to a minimum. After receiving a letter from Vanquis this week about going over my credit limit and if I didn't pay this amount immediately then I could be asked to pay the balance in full has scared me but also given me a push to sort all of this out.

4 -

I do not own property. I live with my parents and they do own the house. Would they be affected in any way? I pay them 'Board' every month and this is a big chunk of my wage as they are now both retired.
I used the online calculator on Step Change and a DRO was one of the options given as when I put all figures in my Surplus Income came to less than £50. I also have no assets apart from a laptop and phone but nothing else.

5 -

How quickly does the process of applying for a DRO and being accepted take? Applying for an IVA was a harrowing experience and took almost a year (I did initially go to a unscrupulous company).I have paid my minimum payments on my accounts this month and would be unlikely to be able to pay the £90 fee until next months wage so should I wait until I have the £90?

6 -

The only negative of a DRO for me would be that I would be on the Insolvency Register again but I was on it for nearly 6 years so what is another 15 months hey? Can anyone confirm that there are no ads in local papers for DRO's?

Replied on your other thread.

fatbelly

Amy

1. You cannot be in two different insolvency solutions at the same time but if yur IVA is completed/terminated then you are free to enter a DRO

2. After 12 months your debts are written off; there is no certificate issued. The only debts that can be pursued after the moratorium are fraudulent debts.

3. If you're doing a DRO, stop paying all the creditors. You need to treat them all equally and the best way to do that is to pay them all nothing.

4. Your parents would not be affected

5. Start the ball rolling now. The limiting factors for your intermediary are getting the Experian report and you paying the £90. A month or two is typical.

6. There are no ads in local papers but if you are a national celebrity the gutter press may spot you on the Insolvency Register.

Faisal2110

I have been reading through the forum and couldn't find an answer so thought I would post my dilemma - using my hubby's account!
My husband owns our house (his name on deeds only) and pays a mortgage. We have a joint bank account and have a loose understanding that he pays most of the bills and I pay for the groceries and other misc items. I have about £12k on credit cards (on my name) from a few years which I pay off monthly. I recently lost my job and my husband has been trying to keep us afloat but can no ;longer afford to do so. My question is how would I show my expenses when, in essence, my husband has been paying for almost everything? All I have as income currently is child tax credits and child benefits. I really need this to work as we simply cannot cope. In the mean time I'm still looking for a job but it's been months. I genuinely have zero money for myself but not sure how to show it?

fatbelly

The intermediary would look at your, and your husband's income. Then look at your household expenditure. You would take the relevant proportion of that, e.g. if your income is 10% of the total then you show 10% of each expenditure item. If the end surplus is <£50 per month then you meet that criterion.

Faisal2110

That's great - thank you. Question is though, if my husband has money left over and I have zero income, surely that is his money and not mine? If that makes any sense? How can I have £50 left if I don't earn any money?