Debt Relief Orders (DRO) - Information & help thread

sparkswillfly_2

Hello. I have a few questions if thats ok?

What will be the affect of the DRO after the 6 years, will I have to mention it if I go for a loan or mortgage or job 10/15 years later?

Also, is it likely that my bank will disown me? Is it hard to get a bank account after?

Another one, Im not married but I live with my partner and all our incomings and outgoings are joint but our debt is seperate can we apply for a DRO together or do we have to do it seperately and how would that affect our incomings and outgoings? He works full time and Im a full time mum so have no income.

Last one, we definitely dont have anything of value apart from our tv. It was £800 last year, it probably doesnt have a resale value of over £300 but would that count as an asset? Ive read normal household objects dont count as assests but is a plasma tv and playstation normal household objects?

Thank you.

Godiva500

Hi Sparks
Q1 Not sure about after 6 years - I would think you would have to notify if asked as in Bankruptcy, but maybe an expert can advise on that one

Q2 Banks in general don't like DRO's so you need to open a new bank account - I have mine with CO-OP Cashminder account, and they have been brilliant. Tell them that you are going for a DRO, ask them to confirm that it won;t get frozen, then get your living expenses paid into that just before you apply for DRO. ( that's what I did). If you leave it in your old account, it may get frozen and you will have no money to live on.

Q3 DRO is for an idividual only - If its for you, you need to fill in an SOA ( link in my signature below) and for your income you put Nil if thats the case, and you need to put your partners contribution to the household in other income. Your partner would put his income in and a nil contribution from you.

Q4 It is unlikely that the TV is over £300, second hand, and also that the OR would have any interest in any items like this. They are more concerned with cars, houses, valuable items like expensive jewellery, antiques and things that can be sold to pay your creditors.

You need to take advice on all of this from an intermediary ( links below) or you cannot apply for a DRO - they do it for you. They are free, and will talk you through all of the steps before applying.

Hope this helps.

debrag

I never needed to open a new bank account, I'm with natwest. They aren't on my DRO so that helped.

Can't wait for July to be over!!

Godiva500

Flowers I know that if the circumstances change during the year of the DRO, and your surplus is then over £50 pm, your DRO is likely to be revoked and you become liable for your debts again...... Sorry .

needs_advice_3

hi i have recently been to cab and they said i qualify to apply for a dro i am in 2 minds if its right thing to do and few things are worryin me, i have an application in with the csa for child maintenance from my ex partner but i am currently not recieving any payments been waitin since may this yr. what will happen if my dro is passed and i start recieving payments?

Mullington

Hi,
I'm looking for a spot of advice because I'm full of worry. I've recently become a full time carer for my mother. My combined benefits (carers allowance & I.S) are £93.00 per week.
I have no savings, no assets etc. I have a managed loan with the HSBC for about £3800 pounds and until I stopped worked last month I paid £136.00 per month. I've phoned the HSBC to explain my circumstances but they won't help. They've agreed to half my payments to £68.00 for three months, then they will put my payments back to £204 for three months, then back to £136.00 thereafter. The lending section said they were giving me three months relief because my circumstances might change...but they won't be changing in the immediate future.
Is a DRO my only option? I'd like to pay back the HSBC over time but they won't budge- £204 per month will be impossible to meet.
Any pointers would be really useful.

fatbelly

Hi Mulington. I like your avatar - similar vintage to mine I believe.

No a DRO is not your only option, though it might work. Why not start a new thread in the debt-free wannabee forum and post a statement of affairs.

I'm sure you'll get good advice

sparkswillfly_2

Godiva500 wrote: »

Hi Sparks
Q1 Not sure about after 6 years - I would think you would have to notify if asked as in Bankruptcy, but maybe an expert can advise on that one

Q2 Banks in general don't like DRO's so you need to open a new bank account - I have mine with CO-OP Cashminder account, and they have been brilliant. Tell them that you are going for a DRO, ask them to confirm that it won;t get frozen, then get your living expenses paid into that just before you apply for DRO. ( that's what I did). If you leave it in your old account, it may get frozen and you will have no money to live on.

Q3 DRO is for an idividual only - If its for you, you need to fill in an SOA ( link in my signature below) and for your income you put Nil if thats the case, and you need to put your partners contribution to the household in other income. Your partner would put his income in and a nil contribution from you.

Q4 It is unlikely that the TV is over £300, second hand, and also that the OR would have any interest in any items like this. They are more concerned with cars, houses, valuable items like expensive jewellery, antiques and things that can be sold to pay your creditors.

You need to take advice on all of this from an intermediary ( links below) or you cannot apply for a DRO - they do it for you. They are free, and will talk you through all of the steps before applying.

Hope this helps.

Thank you for the help! I think Im going to go through my local cab to do it.

Mullington

fatbelly wrote: »

Hi Mulington. I like your avatar - similar vintage to mine I believe.

No a DRO is not your only option, though it might work. Why not start a new thread in the debt-free wannabee forum and post a statement of affairs.

I'm sure you'll get good advice

I'm going to write to the HSBC and inform them I'm also writing/copying the letter to my M.P and the Association of Carers. I shall request that they offer me an achievable repayment scheme. What they have proposed fails to take into account I no longer work and that I'm surviving on benefits. I loathe this bank for their lack of compassion. Is every bank like this nowadays? :rolleyes:

fiveyearplan

Yes, they're pretty much all the same. I had a barclays account for 18 years, never once overdrawn over my £250 o/d limit then one month a direct debit bounced and it spiralled to make me £600 overdrawn, my past history with them counted for nothing and I got hounded and hounded by them.