Debt Relief Orders (DRO) - Information & help thread

davenkirst

hi,
no homeowner, no assets.. owns a 1990 VW golf worth around £500.00 and the loan was for £16k in 2007!!? through lloys tsb? so a DRO wouldnt be suitable then??
He doesnt have the funds for a bunkrupcy order at present though??

CCCS_Matthew

I think it would benefit your friend if they perhaps contact someone such as ourselves so their situation can be looked into further to ensure they get the right advice.

As I'm sure you can understand, it's very difficult to be able to discuss their options in detail via an internet forum!

Matthew.

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

Just thinking about this situation, what would happen if the OR wasnt informed??
Do they keep routine checks on people with DRO's?
Is the OR able to find out change of circumstances through tax codes, National Insurance etc?
Or is it the case that once granted a DRO, after the initial 30 days are up, the OR has no more interest in the case, or simply has no more time to investigate???

GCusdin

I have now had my application declined because the insolvancy service are saying I sold my car for less than it was worth. How can they value a japanese car??
I waited 3 months to get the funds to pay, I have told all my creditors what was hapening and why they were not getting a payment. I then had to borrow the money to do the application and they are saying 'You have entered into a transaction at undervalue during the relevent period'.

My car was valued on the net by we buy any car at 1250 and that is what i sold it for. Can you appeal the decision, what do I do know with over 10 grand debt and council tax arrears with a low income??

debt_doctor

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

DLA will not affect your DRO. It goes in as income but the same amount comes straight out as care needs, so no net gain in assessed income.

DD

debt_doctor

Clairvoyant wrote: »

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.

Im afraid you are correct, you cannot have a DRO.

DD

rainbowj63

does anyone know if they check what you have spent money on in the last few months as i did get some money from a small injury claim and paid family back who had helped me over the last couple of years, will they check why i had a bit of money and none now ????

ALSO MY CAR ON PAPER MAYBE WORTH SLIGHTLY OVER THE 1000 BUT IT HAS A LOT OF DAMAGE SO IN REALITY ISNT I WANTED TO GIVE IT TO MY SON WHO IS A MECHANIC AS I CANNOT RUN IT ON JSA WILL I BE REFUSED ON THIS ????

Bleddry

Apologies if this question has been asked already, but does the £15k limit assume debt in sole name, or need to include joint debt as well?

Godiva500

Bleddry - 15K includes your portion of joint debts.
Rainbow - Car Value - look at Parkers to get correct valuation - poor condition for yours. They didn't look back at any of my spending, so you should be ok

serenity34_2

GCusdin wrote: »

I have now had my application declined because the insolvancy service are saying I sold my car for less than it was worth. How can they value a japanese car??
I waited 3 months to get the funds to pay, I have told all my creditors what was hapening and why they were not getting a payment. I then had to borrow the money to do the application and they are saying 'You have entered into a transaction at undervalue during the relevent period'.

My car was valued on the net by we buy any car at 1250 and that is what i sold it for. Can you appeal the decision, what do I do know with over 10 grand debt and council tax arrears with a low income??

The Approved Intermediary who put your application through should have been aware of this issue and should also have been aware that ( as Godiva correctly points out ) the IS use Parkers to get a valuation not one of those slightly dubious sites which will ALWAYS offer below market value.

There is no right to appeal the decision made. You can follow the Insolvency Service complaints process ( see their website - unfortunately I'm not allowed to post links yet! ). If you feel the 'competent authority' ( your approved intermediary ) hasn't acted properly then you would need to follow their own complaints process.

As for your immediate situation it's very difficult to give advice without knowling all of your circumstances and what stage your debts are at. The Council Tax arrears you mention are a 'priority debt' but it isn't clear who else you owe money to.

I would strongly recommend you speak to a debt counsellor at an organisation like National Debtline on freephone 0808 808 4000 who can give free, impartial, confidential advice on your whole situation.

Based on the bare bones of what I know your main options will be to either consider bankruptcy or you can deal with the creditors yourself. Based on the 'low income' you mention and I would assume you have less than £50 per month surplus income ( or you wouldn't have applied for a DRO ) then it's likely you will need to offer most of your surplus to sort the Council Tax out and token or zero ofers to other creditos ( depending what debts they are ).

Hope this helps