Debt Relief Orders (DRO) - Information & help thread

misteradam2005

Last night, I called the CCCS and redid my budget for my DMP. It came to less than £50 surplus so I mentioned about the possibility of a DRO.

On my new budget, I added that I had a car and the expenses. I have had the car for over 2 years but I never put it down on my budget (as I was worried that my creditors may hear and may not allow me to keep it, and also it was easier to just account for bus trips rather than calculating all I spend on the car). My car was only £300 quid when bought. But the CCCS woman said that they may take my car with a DRO. I told her I had read that it is allowed below £1000 but she said they OR may see that I have recently got it (when I haven't but didnt tell the CCCS this) and take it away from me.

Is this true?

I don't know whether it would be best to go to CAB and do my DRO as CCCS have too much history on me so may complicate matters (also I worry that they may step in the way of a DRO being granted as then they will lose the DMP money I pass to them every month - I know it is a charity but they still earn the interest on your DMP money each month when they are holding it) and with the CAB it will be fresh and I won't have the complications of explaining that I never declared my car to CCCS. I could just go through my budget with them and allow them to put the DRO application through.

Also, will I know if they will take my car before the DRO is granted? Say, they come back and say we have granted your DRO but you will lose your car, can you stop the DRO? Its only a £300 car but I need it to get to work (as I am only temping at the moment so need to have access wherever the agency send me).

Any advice would be great. I have the number for the CCCS DRO/Bankruptcy people but unsure whether I want to do it through them for the reasons above - also not too happy with being warned that my £300 car may be taken when I have read that you can keep it if under £1000.

wba31

misteradam2005 wrote: »

Last night, I called the CCCS and redid my budget for my DMP. It came to less than £50 surplus so I mentioned about the possibility of a DRO.

On my new budget, I added that I had a car and the expenses. I have had the car for over 2 years but I never put it down on my budget (as I was worried that my creditors may hear and may not allow me to keep it, and also it was easier to just account for bus trips rather than calculating all I spend on the car). My car was only £300 quid when bought. But the CCCS woman said that they may take my car with a DRO. I told her I had read that it is allowed below £1000 but she said they OR may see that I have recently got it (when I haven't but didnt tell the CCCS this) and take it away from me.

Is this true?

I don't know whether it would be best to go to CAB and do my DRO as CCCS have too much history on me so may complicate matters (also I worry that they may step in the way of a DRO being granted as then they will lose the DMP money I pass to them every month - I know it is a charity but they still earn the interest on your DMP money each month when they are holding it) and with the CAB it will be fresh and I won't have the complications of explaining that I never declared my car to CCCS. I could just go through my budget with them and allow them to put the DRO application through.

Also, will I know if they will take my car before the DRO is granted? Say, they come back and say we have granted your DRO but you will lose your car, can you stop the DRO? Its only a £300 car but I need it to get to work (as I am only temping at the moment so need to have access wherever the agency send me).

Any advice would be great. I have the number for the CCCS DRO/Bankruptcy people but unsure whether I want to do it through them for the reasons above - also not too happy with being warned that my £300 car may be taken when I have read that you can keep it if under £1000.

You will not lose your car in a DRO. If the car is worth more than £1000, the DRO gets revoked, if it is worth less than £1000 then it will not affect the DRO. I would suggest you ring the DRO helpline number CCCS have given you and report what has been said so it can be looked into.
The CCCS DRO team are also their bankruptcy team, and have given myself and friends sound advice and support in the past

Godiva500

I am sorry to say this, but I found that CCCS gave me incorrect information too, as it was then still fairly new, so I went to National debtline for advice, and Baines & Ernst for the actual DRO. I was told that OR didn't require any info on car as long it was valued by Parkers at less than £1000, and I was never questioned about it.

wba31

lipglossbutterfly wrote: »

Hi, I've met with the CAB re a DRO and provisionally it seemed I can apply for a DRO.

But since reading up more about how they value a car, I'm not so sure.

I own a 1997 Ford Maverick 2.7 GLS, 7 seater car as I have 5 children (4 I get child benefit for and an 18 year old on job seekers.) Anyway, I paid £900 for it off Autotrader in January this year. I borrowed £500 off my brother which I have yet to repay! Having looked up its value online it is over £3,000 !!!!!!!! Given the current climate and people's attitudes to 4x4's there is no way I would get that for it if it was sold, plus it has an oil leak (that I can't afford to get fixed) and is now in pretty fair condition.

What affect would this have on a DRO? I do not want to have to find £90 for it only to be turned down... Would I be made to sell the car and would I have to get a certain price for it??

Any help would be much appreciated xx

Take the car to a private dealer, and ask them to give you in writing what they value the car at. List this value on the DRO application, and if it is questioned by the IS provide this garages valuation as evidence. It may be worth getting 2 or 3 valuations done so that they dont think that you have simply approached a garage and asked them to simply write a letter claiming the vehicle to be worth £900 for example

wba31

Godiva500 wrote: »

I am sorry to say this, but I found that CCCS gave me incorrect information too, as it was then still fairly new, so I went to National debtline for advice, and Baines & Ernst for the actual DRO. I was told that OR didn't require any info on car as long it was valued by Parkers at less than £1000, and I was never questioned about it.

were you given wrong advice by their specialist team or by their general advisors? as i said in a post just, i have found their specialist team to be very knowledgeable, and they were not afraid to correct the wrongs i had been told!

misteradam2005

Thanks all.

I'm gonna call the number again after work (did try yesterday but just had answer machine each time).

I really hope it goes through okay - will keep you posted.

One other thing, if for some reason my DRO is not accepted, will my current DMP be at risk? I'm struggling as it is but dont want to not be accepted for a DRO, and then my DMP collapses so all the creditors come circling around me like sharks smelling blood (okay - I have a bit of a vivid imagination but you get the idea!)?

wba31

misteradam2005 wrote: »

Thanks all.

I'm gonna call the number again after work (did try yesterday but just had answer machine each time).

I really hope it goes through okay - will keep you posted.

One other thing, if for some reason my DRO is not accepted, will my current DMP be at risk? I'm struggling as it is but dont want to not be accepted for a DRO, and then my DMP collapses so all the creditors come circling around me like sharks smelling blood (okay - I have a bit of a vivid imagination but you get the idea!)?

I dont think CCCS would be interested in removing your DMP if your DRO gets revoked. In my research i believe a DRO would only be revoked if you fall outside of the qualifying criteria (£50 surplus, assets and debt level) or if you have given away assets in last 2 years or preferred a creditor in payments.
If worst comes to the worst you could either go through their process again (their online thing or through their freephone number) or go to NDL

Godiva500

The incorrect info was given to me by their specialist team, but as i said it was very new then, and the criteria was still getting sorted out. I am sure it wouldn't happen now the DRO has been running for a while now.

cornishman86

Hi all, just a quick question, sorry if I've missed the answer in previous posts.

I am considering going for a debt relief order, but what I want to know is when I apply do they take into account the household income/assets (i.e. me and my fiancee) or just mine. If both, I don't think it'd be in my interest to apply, but if just me then things would be different.


Many thanks,

Cornishman86

fatbelly

cornishman86 wrote: »

I am considering going for a debt relief order, but what I want to know is when I apply do they take into account the household income/assets (i.e. me and my fiancee) or just mine. If both, I don't think it'd be in my interest to apply, but if just me then things would be different.

Hi Cornishman

Who are you using as your intermediary?

The intermediaries' guide says

It is an eligibility requirement for a DRO that the debtor does not have a disposable monthly income, following deduction of normal household expenditure, of more than £50 per month. The Income and Expenditure Account on the application form therefore provides a calculation of how much money the debtor has to spare each month (if any), and stemming from this, whether they are therefore eligible for a DRO.

The Income and Expenditure Account is based on the summary page of the Common Financial Statement used by many debt advisors. It is anticipated that in most cases, although not in all, the intermediary will already have completed a version of the Common Financial Statement (or similar document) following initial consultation with the debtor regarding their financial affairs.

Income

Please indicate on the application form the debtor’s total net monthly income following deduction of tax etc.
The debtor’s income could derive from various sources, including wages, benefits and pensions. All benefits should be scheduled, including DLA, and in the instance of DLA, it is acceptable to record the same amount as expenditure. The debtor may also receive income from other areas, such as rental income, which should also be included on the form in the “other sources” field.

The system will automatically calculate the debtor’s total monthly income (stated in the “Total Income” field) based on the figures included on the form.

So I think you'll be all right