Debt Relief Orders (DRO) - Information & help thread

Flowers

Godiva500 wrote: »

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 .

I know that. What I need to know is how a new assesment works. If your income increases and your outgoings increase.

If I earn 700 a month, but my rent and living expensing are 650 then am ok? But what is an ok amount to spend on rent, food, entertainment???

jemtom

i read in a post about bank funds getting frozen if you go for a DRO, is this just if you have debts with them? this wasn't mentioned when i have been speaking to anyone from cccs, but the bank i am with i have no debts (barclays), but my others accounts with TSB (credit card, joint account) have been put down as debts - i dont use the TSB accounts, so just want to check that my bank account i use (barclays) nothing will get frozen.

fatbelly

jemtom wrote: »

i read in a post about bank funds getting frozen if you go for a DRO, is this just if you have debts with them? this wasn't mentioned when i have been speaking to anyone from cccs, but the bank i am with i have no debts (barclays), but my others accounts with TSB (credit card, joint account) have been put down as debts - i dont use the TSB accounts, so just want to check that my bank account i use (barclays) nothing will get frozen.

Jemtom - I can't see that you will have a problem. Barclays won't be informed of your DRO if you have no debts with them.

jojo1985_2

the above nearly answered my question, i have my meeting with cab tomorrow to get the ball rolling with my dro. i have been turned down for the co-op cashminder account so my only option is to keep hold of my current account by not declaring the debt for the dro (this account also has £600 on a credit card) can i do this? although it will leave me with £2500 worth of debt its better than the £11500 i owe in total!

preciousillusions

I have been told by the CAB to enter into a DRO and i am very worried about the whole thing. Mostly regarding future employment and rental issues. I am slowley making my way through the last 10 or so pages of this thread.

One thing I wanted to mention is that for me, the CAB are allowing the application to allow for me getting a job and earning more. This is by effectively presenting two financial statements, and showing that if i were to be earning more i would be spending more (i.e. currently i am at home and have rent arrears, and i don't spend out for other things people do on a regular basis such as hair cuts, allowance for clothes etc.), so at the end of the day that surplus income would likely be still £50 or less. This is really helpful for me as i am a recent graduate and not being able to get a job long term would be quite damaging as i currently am desperate for routine and structure in order to manage mental illness. The only way i can see things improving in that respect is getting a job. The CAB first of all thought i wouldn't be able to get the DRO because of this reason - that i could potentially/hopefuly be earning more in the future, but like i said they think they can get around this for me. So anyone who thinks they may be excluded from applying for similar reasons it might be worth having a word with your local Citizens Advice.

Regarding food budget i also will add that my amount for food is a very uncommonly high outgoing for me due to an eating disorder, and this has not been seen as a problem, so i don't think there is a particularly low limit or anything like that. There is a note on my statement explaining the reason for that amount though.

I am still not totally sure about the DRO though. It is such a daunting prospect and i am only 22. My debts are less than £7000 (have to admit in a stupid way i which i'd had more credit to spend if i am going to do this anyway and could have up to 15,000 written off !) but i don't see any other way out of this predicament at the moment. I am really in a viscous circle with a lot of things.

fatbelly

jojo1985 wrote: »

the above nearly answered my question, i have my meeting with cab tomorrow to get the ball rolling with my dro. i have been turned down for the co-op cashminder account so my only option is to keep hold of my current account by not declaring the debt for the dro (this account also has £600 on a credit card) can i do this? although it will leave me with £2500 worth of debt its better than the £11500 i owe in total!

Jojo - no you can't. You must declare all your debts. So the £600 credit card debt must be declared and also the current account if it is overdrawn. You risk losing your fee (at best) and potential action for fraud (at worst). You will not be able to keep these secret because (in all likelihood) they are recorded on your credit file. You may also get your approved intermediary into trouble if it is suspected that he/she colluded with you. So please get your banking sorted out first.

jojo1985_2

been to cab again and got my barcode for dro!

My intermediary has informed me that i can keep my current account with natwest, but put the credit card with natwest through the dro. I have an overdraft on my natwest card....im not sure if this is right?

fatbelly

Sorry if I was a bit blunt in my previous post. The 'intermediary Guidance notes' state:

The debtor must be clearly instructed to include all debts that they owe, on the application form, including any rent or utilities arrears. (their emphasis)

The consequences of omitting information from the application form, which is required by the Official Receiver to grant a DRO, are varied. The Official Receiver may refuse to approve a DRO if it is established during consideration of the application that the debtor has omitted information. If a DRO has been approved, and it is later found that the debtor omitted key information, the Official Receiver may also revoke the DRO. This would result in the debtor once again being vulnerable to actions from their creditors. If it is considered by the Official Receiver that the omission was sufficiently serious, the debtor may also be charged with a criminal offence and/or, have civil action taken against them, such as a Debt Relief Restrictions Order (DRRO).

As I read that, it seems to me that you must disclose an overdrawn account as a debt, and that the DRO Unit are likely to spot this as an omission when they do a credit check

Even if you can get your current account into the black on the day of DRO application, I would still say that there is a risk that Nat West will close your account. It is always better to have a bank account unconnected with your debts

Smart_Mart

I'm almost there with mine now. Applied online for my credit file from Experian today, asked for statements and letters from my creditors stating the amount owed and also started my list of creditors for the OR. I should get the money to pay for the DRO on Monday or Tuesday so the ball may start rolling next week.

I'll be glad when this is all over.:rolleyes:

Leigh73

Hiya,

First of all, thank you everyone for all the brilliant advice on here, re the Debt Relief Order process.

I called the National Debtline last night, after working out all of my debts.

The lady on the phone reckoned I would be eligible for a DRO, as my debts are all unsecured, totalling around £9,000, and I have no assets. I live in rented a Housing Association flat, and have just lost my job.

I'm trying to keep calm here, but am so worried due to all the guilt and self - loathing my actions this past year have caused...

I was 100% upfront and honest with her, and told her briefly that a lot of my debt had been caused by the fact that I've been struggling with depression and anxiety, and as well as being a recovering alcoholic, I lost my job due to absences brought on by these conditions :-/

She asked me if I was getting support for the drinking etc, which I have been. She then said it shouldn't affect things re the DRO, as the OR are only really interested in people who've been 'reckless'.. Well I was never purposely reckless (ie - gambling as she mentioned) however I was hardly responsible
drinking again, and I'm worried my past will stop my DRO going ahead.

The other worry, is the fact that I had to petition for my own Bankruptcy back in Jan '03, discharged Jan '05. I told her this from the outset, and she said there would be a slim chance that the DRO could he rejected, but it'd be more likely that the OR may impose a 'restriction order' on the DRO, ie - extend the 12 months to a longer term :-( ..

Any ideas regarding any of these please folks?

It was coming up 9pm and they were closing, so I have to call them back with my reference number later this morning. She was a lovely, helpful lady. I told her my most pressing debt is for £557 rent arrears to my Housing Association, for which I had a 'notice of possession order' against me. I have an arrangement with the HA whereby Ive been paying them £70 per week to cover rent / contribution towards repaying arrears. If I fall behind again with this, the HA will take me to court and I'll probably lose the flat, which is obviously the last thing I need.

Told the Debtline lady that Id rather leave the rent arrears out of the DRO, and keep to the arrangement, and she agreed this would be best, but to discuss this with them when I call back.

As I was fired from my job on Tuesday (boss was q nice about it all, and HR have put me down as a 'voluntary termination / stress'.. which shouldve been marked down as 'involuntary termination/excessive abence/breach of absence procedure/ not eligible for rehire'...but they've been understanding after I came clean about the drink issue / depression, and put it down as a mutual decision. Also they've put down on my file that I will be eligible to reapply for a job with them when I'm feeling better.

My worry is though, that the job application last time, and will do when I reapply in three months time.. a background check with Experian :-/

I feel in a corner, as there is no way out of all this debt (around £4k priority debts and £5k CC's etc debt) yet it's going to hammer my credit rating isn't it?Worried that I'll then fail background check.

Also, the OR may even turn in down from the off, due to my previous BR / history of depression and alcoholism :-/

Feeling so low about this and can't sleep, but am determined to stay sober (with the help of AA and my GP) and move forwards slowly but surely.

Anyone gone for a DRO with a similar past to mine?

Any help would be most appreciated.

Sorry to sitter on. Feels good to offload a bit to be honest!

Thanks,

Leigh x