Debt Relief Orders (DRO) - Information & help thread

Sonic101

My experience with DRO so far:

Submitted the DRO application form end of May, two weeks ago got an email StepChange querying something on the application form (I’d made a stupid typo), I emailed back with the info they needed. I called to check they’d received the email (they had), and a nice chap went through all the info I’d put on the form just to ensure there was nothing to my knowledge I’d missed or got wrong.
He said  it would take about a week for the DRO admin team to get to my email, then another ten days for the drafting team to process the application for the IS, and I won’t hear anything further unless there’s a problem or they’re sending me a copy of the draft application/barcode etc.

So I’m waiting with baited breath….I’m so nervous.

sourcrates

Sonic101 said:

My experience with DRO so far:

Submitted the DRO application form end of May, two weeks ago got an email StepChange querying something on the application form (I’d made a stupid typo), I emailed back with the info they needed. I called to check they’d received the email (they had), and a nice chap went through all the info I’d put on the form just to ensure there was nothing to my knowledge I’d missed or got wrong.
He said  it would take about a week for the DRO admin team to get to my email, then another ten days for the drafting team to process the application for the IS, and I won’t hear anything further unless there’s a problem or they’re sending me a copy of the draft application/barcode etc.

So I’m waiting with baited breath….I’m so nervous.

All will be fine, they don`t submit applications that have a chance of failure, only a tiny proportion are refused, and that`s usually because -

• you don't meet all the criteria for getting a DRO
• you didn't provide further information when asked
• the official receiver believes that you haven’t been honest in your application.

As long as you`ve ticked all the boxes, everything will be ok.

Sonic101

sourcrates said:

Sonic101 said:

My experience with DRO so far:

Submitted the DRO application form end of May, two weeks ago got an email StepChange querying something on the application form (I’d made a stupid typo), I emailed back with the info they needed. I called to check they’d received the email (they had), and a nice chap went through all the info I’d put on the form just to ensure there was nothing to my knowledge I’d missed or got wrong.
He said  it would take about a week for the DRO admin team to get to my email, then another ten days for the drafting team to process the application for the IS, and I won’t hear anything further unless there’s a problem or they’re sending me a copy of the draft application/barcode etc.

So I’m waiting with baited breath….I’m so nervous.

All will be fine, they don`t submit applications that have a chance of failure, only a tiny proportion are refused, and that`s usually because -

• you don't meet all the criteria for getting a DRO
• you didn't provide further information when asked
• the official receiver believes that you haven’t been honest in your application.

As long as you`ve ticked all the boxes, everything will be ok.

Thanks. There is another possible issue (which I won’t bore you with), but I’m probably just over-thinking things…as I always do! 😀

fatbelly

It's 99.9% likely you'll get your DRO.

Just post here if you have any actual problems (rather than theoretical ones)

Sonic101

fatbelly said:

It's 99.9% likely you'll get your DRO.

Just post here if you have any actual problems (rather than theoretical ones)

Well, guess what? DRO granted. After some to-ing and froing with StepChange about a couple of things the application was submitted and I got confirmation from the IS within a day. 

Thank you fatbelly, sourcrates (and of course others on this forum) for answering my questions, etc.
Today feels like the first day of the rest of my life....

TwinMummy

Hello, I wonder if anyone can advise me please. After consulting stepchange about our situation they have advised myself to apply for a DRO and husband to apply for an IVA. We are not homeowners (we rent from council - no arrears).

After reading the forums I can see that an IVA is not advised by you guys especially as we don't own a property. This was the only option stepchange gave for him so I'm a bit confused as to what he should do. Debts in his name are over £30k.

As for me, I have a credit card with Lloyds which I would have to include in a DRO but my current account (which my wages get paid into) is also with Lloyds. Should I open a new account? Maybe a Starling or a Monzo?

As yet we have not defaulted on any of our credit cards but this is becoming unmanageable as we end up paying them (minimum payments) but using them again for food/petrol. (4 dependant children).

Is the general advice for a DRO the same as an IVA in that the earlier the defaults the better?
I would then be able to use some of that money to start building an emergency fund (we have zero for emergencies at the moment). 
If I were to do that, then apply for a DRO wouldn't they want bank statements and tell me to use the emergency fund towards the debts?

I'm so confused by it all, and really appreciate any advice.
Thank you.

RAS

TwinMummy said:

Hello, I wonder if anyone can advise me please. After consulting stepchange about our situation they have advised myself to apply for a DRO and husband to apply for an IVA. We are not homeowners (we rent from council - no arrears).

After reading the forums I can see that an IVA is not advised by you guys especially as we don't own a property. This was the only option stepchange gave for him so I'm a bit confused as to what he should do. Debts in his name are over £30k.

As for me, I have a credit card with Lloyds which I would have to include in a DRO but my current account (which my wages get paid into) is also with Lloyds. Should I open a new account? Maybe a Starling or a Monzo?

As yet we have not defaulted on any of our credit cards but this is becoming unmanageable as we end up paying them (minimum payments) but using them again for food/petrol. (4 dependant children).

Is the general advice for a DRO the same as an IVA in that the earlier the defaults the better?
I would then be able to use some of that money to start building an emergency fund (we have zero for emergencies at the moment). 
If I were to do that, then apply for a DRO wouldn't they want bank statements and tell me to use the emergency fund towards the debts?

I'm so confused by it all, and really appreciate any advice.
Thank you.

Hi, I suspect that others would be grateful for more information on hubbie's situation before they can advise.

With respect to your situation, how much are your monthly minimum payments? And CT or utility arrears? Any joint accounts with hubbie?

And yes, you would be wise to open a new basic bank account, get any income moved across and DDs set up.

TwinMummy

RAS said:

Hi, I suspect that others would be grateful for more information on hubbie's situation before they can advise.

With respect to your situation, how much are your monthly minimum payments? And CT or utility arrears? Any joint accounts with hubbie?

And yes, you would be wise to open a new basic bank account, get any income moved across and DDs set up.

Thanks RAS, No CT arrears. My energy company went bust a while back and I was moved to a new supplier automatically. I believe there is approx £155 owing by me but the new company have never mentioned it although it does appear on my statement in a separate section. I will work on getting that paid off asap (if I default then I can use that money). Other than that all household bills are up to date. We have been prioritising paying all the bills before buying food and necessities which is just silly really and how we have ended up in such a mess.

Husband and I did a joint budget planner on stepchange. They gave us options to go jointly into an IVA , or if we wanted to handle things separately, then for me to do a DRO and for him to still do an IVA on his own.

We have a joint bank account with Lloyds (which isnt used for very much) and I also have my own current account.  Other than that no joint accounts or joint debts.

sourcrates

A new bank basic bank account, with a lender with whom you have no debt is a necessity with any debt solution.
Early defaulting really only applies to debt management, a DRO is a formal insolvency solution, so any debt included in it will have an amended default date the same as the start date of your DRO.

Remember, in a DRO you must have £75 or less disposable income at month end, a car worth no more than 2k, cash/assets of no more than 2k.

Bankruptcy is an option for hubby, 30k of debt, he can ether struggle for 6 years with an IVA, or go bankrupt for £680, and its over in 12 months, he may have to pay IPA for 3 years depending on income/expenditure, any reason why he couldn't do that?

TwinMummy

I dont think theres any reason why he couldnt do that. Its not one of the options given by stepchange so I imagine he would have to go via payplan or cab. I'll definitely look into it. Thank you for the advice.