Debt Relief Orders (DRO) - Information & help thread

toomanyshoes

fatbelly wrote: »

Yes, rent arrears must be put in the application and is not an 'excluded' debt

Does that then mean that the rent arrears amount will make up part of the £15k total debt limit but it wont be written off?

So, for example, if someone had £5K rent arrears and £11k credit card debt, they couldn't go for the DRO?

But if they had £5k rent arrears and £9k credit card debt, they could apply for a DRO but only the £9k credit card debt would be written off and they remain liable for the rent arrears?

fatbelly

toomanyshoes wrote: »

So, for example, if someone had £5K rent arrears and £11k credit card debt, they couldn't go for the DRO?

But if they had £5k rent arrears and £9k credit card debt, they could apply for a DRO but only the £9k credit card debt would be written off and they remain liable for the rent arrears?

Yes, that's pretty much it, as long as the rent arrears are those relating to the debtor's current residence and the debtor intends to stay there

The full text from the guidance, on this topic is:

There is a decided case in bankruptcy “Harlow District Council v Norman John Hall (2006) EWCA Civ 156 which provides a judgement in relation to the payment of rent arrears in the event of bankruptcy. It is considered that the same position would apply to Debt Relief Orders in that, the action the landlord is taking is the recovery of his property from a defaulting tenant. The action is not therefore for the recovery of debt but the recovery of the landlord's property. In order to avoid that action (the repossession of the property) the debtor has the option to remedy the breach in the tenancy agreement (i.e. pay the rent arrears). Rent arrears being paid under an Suspended Possession Order should be an allowable expense. Where a debtor is voluntarily paying rent arrears under the threat of a possession order then the position is more unclear but, provided there is evidence of an agreement to repay the arrears by instalments, this would ordinarily be an allowable expense.

Squirrel_Jo

Looking at Debt relief orders, it looks like it would be an ideal solution for me. Unfortunately four years ago I thought I was doing the right thing by starting a pension. I only paid £20.00 a month and i think about £14.00 was also put in by government (so vague, sorry but i really don't remember). I only paid in for about a year then couldn't afford it.

So haven't paid anything into it for years. Checked with Scottish widows and my pension is £430 totlal. So looks like based on this nonsense I can't do a debt relief order.

I think they should raise the pension allowed limit to £1000 as I am sure many are in my situation.

elfieb

Squirrel_Jo wrote: »

Looking at Debt relief orders, it looks like it would be an ideal solution for me. Unfortunately four years ago I thought I was doing the right thing by starting a pension. I only paid £20.00 a month and i think about £14.00 was also put in by government (so vague, sorry but i really don't remember). I only paid in for about a year then couldn't afford it.

So haven't paid anything into it for years. Checked with Scottish widows and my pension is £430 totlal. So looks like based on this nonsense I can't do a debt relief order.

I think they should raise the pension allowed limit to £1000 as I am sure many are in my situation.

Citizens Advice are launching a challenge towards the pensions rules when applying for a DRO early this year.
Watch this space

toomanyshoes

fatbelly wrote: »

Yes, that's pretty much it, as long as the rent arrears are those relating to the debtor's current residence and the debtor intends to stay there

The full text from the guidance, on this topic is:

Hi again, sorry to be a bore but...

I have just read up on the full Harlow judgment and the judges did discuss what would happen if the bankruptcy happened before the PO and said it would be the same as after (as decided).

However, that surely could be up for debate as the comments would be counted as 'obiter' so not binding?

Do you think it is then technically possible for rent arrears to be written off through a DRO if no court action has yet been taken?

So for example, if a DRO was in place and the LA then started arrears action, could the arrears be written off and a possession order of any sort avoided completely?

Stardust

Hey I have two questions - How long has it taken others to receive their credit reports back from Experian?
And is there anything that can be done about the amount of phone calls ive been receiving from creditors? They call at all times of the day and night (including 8.50 this morning, waking the whole house up :mad: ), ive sent a letter saying im in hardship, asking for help from the CCCS and sent a token payment.

Smart_Mart

Hi there,

My credit report took an eterntity to come through, or at least it seemed like it. I reckon it took four or five weeks to come back to me.

Re your second question, not sure. I've often told them that I'm only prepared to correspond with them in writing and it seems to have worked especially if you get them to agree to token payments. In that case, you're doing what's agreed and they shouldn't need to bother you unless you fail to pay them...

preciousillusions

Stardust wrote: »

Hey I have two questions - How long has it taken others to receive their credit reports back from Experian?
And is there anything that can be done about the amount of phone calls ive been receiving from creditors? They call at all times of the day and night (including 8.50 this morning, waking the whole house up :mad: ), ive sent a letter saying im in hardship, asking for help from the CCCS and sent a token payment.

Mine took about a week and a half to arrive.
& as for phonecalls, tell them that this sort of behaviour i.e. bombarding you with excessive phonecalls, is classed as harrassment by law and that you only wish to recieve communication by letter from now on. This is the advice i was given by the CAB and it did work. They also told me to write down the time and date of every call just in case.

Stardust

Thanks guys Im gonna write down the calls then, 6 today and counting :rolleyes:

Credit report arrived today :j

I have more questions How do I prove for the DRO that I have a loan? I dont receive monthly statements, should I go to the bank and ask for a counter print out of the account? or is it enough that it appears on my credit report? And is this the same for the current account?

ViolentDelights_2

Hi Guys,

Quick question. If a DRO is revoked as a result of surplus income increasing above £50 (i.e. getting off benefits and into work), would you still be registered as insolvent? Or would this also be revoked?

Also, the £50 cap - is this only applicabe during the 12 month discharge period or must the income not go above it for the entire 6 years?