Debt Relief Orders (DRO) - Information & help thread

marcusang4

I like some help I'm panicking I paid my fee by card at a paypoint not by cash on citizen advice site it says must pay by cash . I rang stepchange and told them I paid the fee .so they sent my application through I'm worried my payment will not go through I got a receipt so surly it would gone through

marcusang4

I paid my dro fee by bank card at paypoint I've heard you can only pay by cash I'm now worried the payment wouldn't gone through I used the barcode and I got a receipt will it still go through if paid by my bank card.

fatbelly

On the barcode letter it says:

Before your Approved Intermediary can submit your DRO application, you need to pay the full £90 application fee.

If you need to, you can pay this fee in instalments of £5 or more. You can make as many instalments payments as you need, but you must pay the full £90 within 6 months of creating your application.

If you no longer wish to proceed with your DRO application, please contact your Approved Intermediary who will arrange for the necessary refund.

To make a payment, you simply need to:
1. take this letter to your local Post Office or you may be able to pay at a Payzone – you can find a Payzone store near you by visiting https://www.payzone.co.uk
2. show them the barcode
3. make a payment by cash or card

so you can pay by bank card

but you can't use Paypoint

Edit: checked and the CAB site is a little wrong there

Robbie64

I posted a question about my pension earlier in this thread. Got that sorted out to my satisfaction. I've paid my £90 and need to phone StepChange on Monday to update my balances and then hopefully it will quickly be referred to the Insolvency Service.


I have a couple of queries which I wonder if anyone can help me with.


1. One of my debts is with my (soon to be former) bank. Interest is still getting added on. On Monday interest will again be added but this never actually goes onto my account for three weeks. Do I need to include my current balance + interest to be added on 11 October or just the actual balance that shows on my account at the moment?


2. When I've updated my balances and assuming everything is fine (and I can't see a reason for a delay) what happens next? Does StepChange submit my application to the IS? I have a copy of my DRO application and all that needs to be changed is the balances. Do I not have to sign anything or do StepChange just include an electronic copy of my signature? I had to sign a form to kickstart my DRO application.


I would phone StepChange to ask them but the hold times for someone to answer are about half an hour at the moment and they don't seem to be responding to emails at the moment (I sent two a month ago and never got a reply or even the usual automatic acknowledgement that they usually send).

fatbelly

Robbie64 wrote: »

I have a couple of queries which I wonder if anyone can help me with.


1. One of my debts is with my (soon to be former) bank. Interest is still getting added on. On Monday interest will again be added but this never actually goes onto my account for three weeks. Do I need to include my current balance + interest to be added on 11 October or just the actual balance that shows on my account at the moment?


2. When I've updated my balances and assuming everything is fine (and I can't see a reason for a delay) what happens next? Does StepChange submit my application to the IS? I have a copy of my DRO application and all that needs to be changed is the balances. Do I not have to sign anything or do StepChange just include an electronic copy of my signature? I had to sign a form to kickstart my DRO application.

Both of those questions are very dependent on how stepchange want to play this.

The balance is supposed to be that on the 'day of determination', which is usually the day after they submit it. I would give them both figures and the date the interest will be applied.

Stepchange submit the applications and it is usually approved 2 days later, with the emails being sent out that day and the letters being received and the register being updated the day after that. No signature needed by the DRO Team, though stepchange may want one to cover themselves.

sourcrates

Robbie64 wrote: »

.
One of my debts is with my (soon to be former) bank. Interest is still getting added on. On Monday interest will again be added but this never actually goes onto my account for three weeks. Do I need to include my current balance + interest to be added on 11 October or just the actual balance that shows on my account at the moment ?

Just to say, any interest and charges that are added during your 12 months monotorium period, do not count towards your debt total, only the balances you give on the day count, everything still gets written off after you successfully complete the arrangement.

Robbie64

^
thanks for the replies fatbelly and sourcrates.


I meant to add that the debt I referred to above is my overdraft on my bank account. The interest is calculated on the 21st of each month, a pre-advice statement of interest and charges is produced and then the amount is deducted from my current account three weeks later. However as I no longer use the account my overdraft balance increases instead by that amount.


I'll phone StepChange once I know the interest amount and give them both the current balance plus interest charges.

Robbie64

A quick update: StepChange advised that I should include the interest even though it hasn't been added to my account as yet. My Debt Relief Order application was submitted on Monday and was granted on Wednesday. It's already showing on my credit report. I feel embarrassed about having to apply for one but it's a massive relief that it has gone through. Hopefully none of my creditors will object but I can't see any reason why they might as I've kept them fully informed of my circumstances, was in regular contact with them and they have all been reasonable. Indeed two have been very helpful and I found it easy to speak to them and to be open and honest with them.

steveado

Hello, Im in a bit of a tricky situation and needed some advice. I have a wife and child aged 7 and currently in a IVA 1 year in. I have 2 months left untill i leave the Army which means i have to move from the Army house. I currently pay £500 a month for IVA but i know my next job i wouldnt be able to pay this. By the time my rent deposit, house rent, and all living bills come out ill be lucky to have any money. Whilst i was in the IVA sometimes i got paid extra for being away from home and all went to the IVA which doesnt reduce my debt. Im due to get a lump some when i leave as part of early pension and this money would help us a few months but 50% is going to IVA and not reducing my debt which annoys me as i want to pay the debt. Any ways it has pushed me to think should i go bankrupt? and have a clean slate or are there other options as im thinking if i stay in my IVA im going to struggle to live. Will going bankrupt stop my security clearence?



hope this makes sense and hope you can help.


regards
steve

fatbelly

Hi

You might be better posting on the main board rather than the DRO thread. You've probably got more than 20k of debt and so a DRO isn't in the picture.

You'll need to give some figures about your new income and debts but you would hope that your adviser considered bankruptcy at the start and didn't just mis-sell an IVA because of the fees they receive.

You cannot just switch from one insolvency solution to another. So you cannot consider bankruptcy until the IVA is terminated, which could take a long time.