Debt Relief Orders (DRO) - Information & help thread

jacktom_2

i did not know anything about this sorry

sunnymoneytree

Hi Misteradam, my experience of a DRO is really new but may be of help in your decision. I deliberated for ages because I was really keen to try to pay back my debts to 3 credit cards and 2 banks (over £9000 by the time I applied). I researched on here and had a couple of long and detailed meetings with my amazing and very busy CAB lady, and finally came to the conclusion that honourable as it is, if I went down the road of token payments I'd still be in the same position in a few years if not worse. Between us we decided the DRO was my best option at a fresh start, but I only believe this to be true as my attitude to debt and money has changed. I no longer debt in any way, would only ever consider 'secured' debt, and I keep a spending record. Jerrold Mundis's books are good for help in adjusting the way you act with money in your life, amazing in fact. I was also concerned that the £50 ceiling on surplus earnings would curb my new found eagerness to make money!, and I still need to work this one out a bit but feel I can justify some increase in income with outgoings that I need to make but cannot make at the moment. At the end of the day if I did suddenly begin making loads of money and my DRO had to be revoked then payments would be easier anyway, although I would have accrued more interest by then.
I've had an incredibly tough few weeks and the DRO was not an easy decision but I do feel much much more positive now, but very much due to having changed myself and not just because I have less pressure. I think this is super important.
Hope this helps you move forward a bit? Good luck!

sunnymoneytree

p.s.
4. As I have struggled on my DMP, I have borrowed money off my partner and my mother. They are feeling the pinch as well so I want to pay them back as and when. Would this be considered as an outgoing? Obvioulsy I dont want to put the debts I owe them on the DRO but would my payments to them for what I owe be considered as an outgoing expense?
I also have a family debt and am paying it out of my surplus earnings

3. For people who have had DROs accepted - what evidence did you have to provide to the IS and OF with regards to your outgoings and expenditures? Did you have to show your rent receipt, copies of your water, electricity, council tax etc bills, household bills etc? How much evidence do they require? And if so, was it the last months bills or a few months going back? Just confused as what documents you would have to provide to the IS and OF.
If you go through CAB they process everything, e.g. the Experian thing you just have to sign a letter authourising them to get the details, and their signature is enough to validate your word re. your SOA.
If your car is pre. 2000 registration your word + their word, and the car details, is enough on that too.
If you do have a meeting with a CAB advisor where you are about to submit a DRO application, take all your addresses and postcodes for the last six years plus your current work address details if you are at work, plus your car reg/model, and anything and everything financial.
I would advise taking the time to get everything clear and accurate NOW, then you know you cannot be picked up on anything later.
(I had a head filled with fog and couldn't see clearly, the result of years of stress/doubt/pressure/regret. It can be super hard but it's soo so worth a lot of effort on this ...you won't regret it and you'll be amazed at the different person you can become, just from feeling like you're more in the driving seat rather than just a passenger in your own life.
All the best with your decision-making.

saskia297

Hiya,

Firstly, thanks to everyone on the 33 pages of this forum, the information has proved invaluable!!

A friend of mine is thinking about going for a DRO, and I was just wondering if anyone had any knowledge about getting a mortgage after this?

Also, I know the DRO stays on your credit report for 6 years, but is this from the initial date granted, or after the 12 months when the debt is wiped?

Thanks in advance!

saskia297

Also, I've got him to try and find out how much pension he has - if this is over the £300, is there any way of cashing this in early?

misteradam2005

Thank you all for your advice.

It is definitely what I want to do.

I have written to all my creditors asking for an up to date balance (I'm hoping no interest has been whacked on).

I have been struggling with my DMP for some time now and have been constantly paying for over 3 years. Yes, I was foolish with money but I have learnt the hard way and now I never will have anything on credit - I'm happy with just a cash card and know what I am spending etc.

I am currently temping so unsure what realistic income I should put down as my situation could change from week to week. I was thinking it might be best to calculate all I have earnt for 12 months and then divide that by 12 to give my monthly income? Will that be acceptable even though I may be earning more this month?

As I say it is not consitent. I could be working for 10 months and then may not find any work for 2 months. I cant see how my income can improve and if I had a DRO accepted, surely I wouldn't have to let the OR know every time I get a different role with a slightly different wage?

sunnymoneytree

misteradam2005 wrote: »

Thank you all for your advice.

It is definitely what I want to do.

I have written to all my creditors asking for an up to date balance (I'm hoping no interest has been whacked on).

I have been struggling with my DMP for some time now and have been constantly paying for over 3 years. Yes, I was foolish with money but I have learnt the hard way and now I never will have anything on credit - I'm happy with just a cash card and know what I am spending etc.

I am currently temping so unsure what realistic income I should put down as my situation could change from week to week. I was thinking it might be best to calculate all I have earnt for 12 months and then divide that by 12 to give my monthly income? Will that be acceptable even though I may be earning more this month?

As I say it is not consitent. I could be working for 10 months and then may not find any work for 2 months. I cant see how my income can improve and if I had a DRO accepted, surely I wouldn't have to let the OR know every time I get a different role with a slightly different wage?

Hi yes I found it a bit of a mind boggler as I have an extremely fluctuating income. Again my CAB lady definitely helped and I did what you are thinking about, ie. take the whole 12 months and divide it by 12. Basically it's hard to get it perfect but just try to start the ball rolling and things get clearer. An advisor helps so much cos' they can often see things more clearly and they know what it is important to get right.
My last three weeks have actually been super tough because I had practically half my usual income and couldn't fall back on my usual borrowing scenario. Have eaten a lot of porridge and rice! Also had to ask to pay my rent late which felt horrible as it was kind of like debting. I felt sick! Now though it feels so good to know where I am with my money, to the penny. I know what's coming up and work everything out. At the supermarket I actually feel relaxed at the checkout even though I can't
buy everything I want.
I suppose what I'm trying to say is that it probably feels complicated and not straightforward, but if you can somehow give yourself time to look at everything clearly, with advice if poss, then it will start to become clear.
I think there is a six month review or something? Could be a good question to ask a CCCS advisor re. the bit about if your income rises? I need to know that too.

sunnymoneytree

If I see anything useful I'll mail you!

sunnymoneytree

Hey misteradam, I just posted a question about this on the 'Ask a CCCS counsellor a Question' thread on the debt free wannabee forum. Post #2821 if it's any use to you. Should get a reply in the next couple of days.

hayley11

My DRO has gone through and been approved. Feel so very relieved and happy that I can get on with life now without the stress of all this debt! Roll on 12 months