Debt Relief Orders (DRO) - Information & help thread

Clairvoyant_2

So I have been given duff advice from my CAB saying I can do a DRO. My Stack Holder Pension is valued at just over £7330. Collectable at 65 just under 30 years to go.

So I have waited over 2 months for an appointment. And I cant do it. BR is my only option then.


Is this correct.

strawberryfields

well i have a dro-recommened on this site, but now i have just been awarded dla at a tribunal, does anyone know if you can go bankrupt after a dro? because it will be revoked as soon as i tell tehm about dla, and when should i tell them? straight away or when it goes in my bank, by back dated money is going to be rather alot, but it won't pay my debts off and i am worried about all my creditors sending me letters again, piling on the interest etc, any one out there please help

elfieb

strawberryfields wrote: »

well i have a dro-recommened on this site, but now i have just been awarded dla at a tribunal, does anyone know if you can go bankrupt after a dro? because it will be revoked as soon as i tell tehm about dla, and when should i tell them? straight away or when it goes in my bank, by back dated money is going to be rather alot, but it won't pay my debts off and i am worried about all my creditors sending me letters again, piling on the interest etc, any one out there please help

I would suggest to get in touch with CAB, or CCCS as a matter of urgency. Who did you get your DRO with?? Try and contact them in the first instance, I assume they will be well informed to give you advice on what to do next.

strawberryfields

thanks my dro was with baines and earnst, will be phoning the cab this morning

elfieb

strawberryfields wrote: »

thanks my dro was with baines and earnst, will be phoning the cab this morning

Baines and Ernst will be neither use nor ornament when it comes to advice!!
Hope you managed to get through to CAB, please let us know what they said.:p

Trollfever

CAB may take the view that as a Competent Authority has already been involved with applying for the DRO, then this falls outside their remit.

davenkirst

Hi my friend had an injury whilst at work in december and hasnt worked since and a accident claim is currently in place as it was not their fault...
Since then he had to leave his rented property and has not been able to pay off any of his o/s debts... which he was paying before hand
could be apply for one of these ? also does it affect your credit rating???

LLYODS TSB CREDIT CARD £12,000
BARCALYCARD £400
RENTAL ARRERS THROUGH LETTING AGENT £1000
other credit cards
Mobile phone £300

??

CCCS_Matthew

davenkirst wrote: »

Hi my friend had an injury whilst at work in december and hasnt worked since and a accident claim is currently in place as it was not their fault...
Since then he had to leave his rented property and has not been able to pay off any of his o/s debts... which he was paying before hand
could be apply for one of these ? also does it affect your credit rating???

LLYODS TSB CREDIT CARD £12,000
BARCALYCARD £400
RENTAL ARRERS THROUGH LETTING AGENT £1000
other credit cards
Mobile phone £300

??

Hi there.

The threshold for a DRO is £15k. You mention they have "other credit cards", do you know how much this add up to?

A DRO does affect your credit rating. It stays on there for 6 years from the date of approval.

Matthew.

davenkirst

CCCS_Matthew wrote: »

Hi there.

The threshold for a DRO is £15k. You mention they have "other credit cards", do you know how much this add up to?

A DRO does affect your credit rating. It stays on there for 6 years from the date of approval.

Matthew.

To be honest i am not sure....
I think he has a loan also that he had payment protection from so does and would that need to be included in the DRO?? But what i have told you above i think actually is just under £15k... so if after a year his situation didnt change would the debts automatically be written off? And what about if say, he receives a lump sum for his injury during the 12 months or after? If he does i know that would be going towards paying off some/most of the loan he has got??

CCCS_Matthew

davenkirst wrote: »

To be honest i am not sure....
I think he has a loan also that he had payment protection from so does and would that need to be included in the DRO?? But what i have told you above i think actually is just under £15k... so if after a year his situation didnt change would the debts automatically be written off? And what about if say, he receives a lump sum for his injury during the 12 months or after? If he does i know that would be going towards paying off some/most of the loan he has got??

They would need to include all of their debts, regardless of whether any insurance is covering payments. So if their total debt totalled over £15k a DRO woud not be suitable.

There are many other factors that need to be taken into consideration with an application for a DRO, such as not being a property owner, no assets worth more than £300 (although a car is allowed providing it's worth less than £1000). I would suggest they would benefit from booking an appointment with an organisation, such as ourselves, to discuss their options.

In answer to your question though, if a DRO was applicable, and they recieved a lump sum payment - it's likely that the DRO would have to stop and they would have to return to paying their debts.

Hope this helps,
Matthew.