Debt Relief Orders (DRO) - Information & help thread

fatbelly

It's unlikely they would submit the application, then send the barcode. We usually do things the other way around at CAB.

If it had been submitted without payment it would be rejected after 10 working days, which is today.

I think you should check with stepchange what they've done.

Tina1993

Hi fatbelly ! 

 I was surprised aswell after reading here all the experience of the people going through DRO applications but that's what i've received via email from Stepchange on 22 February 

" I shall schedule your DRO to be submitted tomorrow morning. You’ll receive an email confirmation once it has been submitted and this will include the barcode letter you need to make the payment." 

So next day on 23 I've received an email saying :

 "As discussed yesterday, we have submitted your Debt Relief Order application today. The application can no longer be altered by us. 

We have attached your payment letter, and embedded the barcode below for your convenience. You will need the letter to pay the £90 fee. The fee must be paid within 24 hours of your application being submitted.

 The Insolvency Service may take up to 30 days to reach their decision, and sometimes ask for further information during this period.

 Well I am very confused now !!

fatbelly

There are very rare occasions where the DRO Team ask the Intermediary for further info/proof on something. It's happened to me a couple of times in 12 years.

I think you really need to phone stepchange and ask

Tina1993

Hi, again ! 
Yes, I actually did I called stepchange this afternoon !
I was told that I had nothing to worry about and since I was applying from Northern Ireland the requirements here are little different.
I was told to expect an email over the next few days with a letter from insolvency service or stepchange saying that DRO has been approved !
 If i don't receive anything this  week they have advised me to call them back next week!

 So at this point seems like there it's nothing else to do , just have to wait and see  , hope all goes OK. 
 Thanks for your advice Fatbelly ! 👍

fatbelly

Northern Ireland could well be different. I am familiar with how the office in Plymouth works but they only cover England/Wales so I guess if stepchange tell you there's nothing to worry about, there's nothing to worry about

WinMeSomeStuff

Morning, hope all is well. My DRO was approved at the end of January earlier in year and the accounts I had included in my DRO are all now in Default status in the clearscore app, apart from the Halifax Personal Loan which says In Arrears. Should have this have been placed in Default by now? Not sure if this is standard for personal loans or not when going through a DRO. I presume the bank know I have a DRO since they froze my current account etc.

Thanks for any advice.
Phil.

1977dave

Sometimes it takes a while for creditors to receive the information. My DRO was granted in January 2020 and one of my creditors didn't actually process the DRO info from the IS until May and then updated the date of default to when they'd processed the DRO, not the actual date it was granted

I used this template from the debt camel website. which I sent to the complaints team. I'm not sure about Halifax, where you would need to send it, I think they have an online form for complaints.

Letter - 

re: [account/reference xxxxxxxxxxxxxxx]

I had a Debt Relief Order approved on dd/mm/yyyy. You can confirm this by checking the Insolvency Register at https://www.insolvencydirect.bis.gov.uk/eiir/.

I am writing to ask you to correct my credit file for [details of your debt with the creditor, including account number or reference number].

At the moment [there is no default date/the default date is dd/mm/yyyy]. This is incorrect and a breach of the ICO guidelines and the Data Protection Act 1998. There should be a default date not later than the start date of my DRO.

Please correct this entry within 28 days or supply me with a written reason why you will not do so. 

Hope this helps

WinMeSomeStuff

Thanks alot for the advice! Will give it another month and if there is no change or dates are not correct I will do just that with your template. Thanks again much appreciated!

fatbelly

That's a useful template letter!

fatbelly

Worth posting here too I think:

Having taken account of all views expressed, the Government intends to lay legislation in Parliament at the beginning of June, that will increase:
 

• the value of assets allowed to be owned by the debtor from £1,000 to £2,000 as proposed in the consultation;

 

• the value of a single motor vehicle that can be disregarded from the total value of assets from £1,000 to £2,000;

 

• the level of surplus income received by the debtor before payments should be made to creditors from £50 to £75 per month and

 

• the total debt allowable for a DRO from £20,000 to £30,000 as proposed in the consultation. 

 
These changes will come into force on 29 June, to coincide with the end of the first 60 day Breathing Space period.