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Debt Relief Orders (DRO) - Information & help thread

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Comments

  • elfieb
    elfieb Posts: 530 Forumite
    jemtom wrote: »
    sorry if someone has already asked this, can you add debts onto a dro if it has been approved?

    Any debts that have incurred after the approval of a DRO, or any debts that were forgotten on the application, cannot be added to the order at a later date.
    I used to be Snow White, but I drifted.
    Mae West
  • wayout84
    wayout84 Posts: 36 Forumite
    Hiya, i have a very small pension put away....we're talking about £421 pounds and I'm not even adding to it because my husband is terminally ill and I am caring for him

    This is literally my only asset

    Can I still go for a DRO? Or does this pension go against me?
  • fatbelly
    fatbelly Posts: 23,204 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Cashback Cashier
    wayout84 wrote: »
    Hiya, i have a very small pension put away....we're talking about £421 pounds and I'm not even adding to it because my husband is terminally ill and I am caring for him

    This is literally my only asset

    Can I still go for a DRO? Or does this pension go against me?

    It counts as an asset and the asset limit is £300.

    But watch this space because the rule might change.
  • I was really interested in the DRO until I saw the limit of £15k, maybe I should really consider going BR but honestly don't know the first thing about it. I've been paying back 5 of my debts at £1 a month for the last 10 years (the 6th gets 11p - long story)

    Any advice about how I'd do this would be appreciated, I had hoped that one of the debts would have pushed me into it by now and paid for the BR but this obviously isn't going to happen.

    If I'd gone BR straight away my credit score would be ok by now but as it stands it's going to take another 6 years at least isn't it to clear it.

    Debts amount to approx £30k - I think

    No assets, not working through disabilities now
    Rainbow
    Liberty
  • fatbelly, really?? cool, is it in discussions or nothing set in stone yet??
  • debt_doctor
    debt_doctor Posts: 4,595 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    Hi,

    there was a meeting between the debt charities and the government minister in insolvency in January 2010 and it would seem that the pension fund limit is going to be increased but not removed entirely as in BR. Changes usually occur in April or October and we are hopeful it will be soon.

    DD
    Debt Doctor, Debt caseworker, Citizens' Advice Bureau .
    Impartial debt advice services: Citizens Advice Bureau Find your local CAB *** National Debtline - Tel: 0808 808 4000*** BSC No. 100 ***
  • fatbelly
    fatbelly Posts: 23,204 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Cashback Cashier
    The text I saw about the pension fund issue is as folows:
    ... meeting with Ian Lucas MP, the Minister for the Insolvency Service on 14 January. The Minister said that whilst he was persuaded of the need to change the rule, he was not minded to abolish it entirely. The Government had to balance the interests of debtors and creditors. He was concerned that if pension funds were to be treated in the same way that they are for bankruptcy, then there is a risk that someone with a high value pension fund could be released from liability for their debts. Media coverage of such a case could prove damaging to public acceptance of the DRO scheme.

    For this reason, the Minister asked us to provide further evidence on the likely size of the pension funds that would be affected by a change in the way they are treated, together with evidence on when these funds are likely to be realised.

    AdviceUK, Citizens Advice, CCCS and the IMA have therefore devised a new survey to gather evidence from advisers on these specific issues for all our approved intermediaries for debt relief orders to complete for a two week period from 1 February to 14 February inclusive.
  • Hi this was my previous thread:
    http://forums.moneysavingexpert.com/showthread.html?t=2253451

    Can anyone help me with this bit:
    Also in the stuff about the DRO it says that you must not have preferred any creditors over others in the last 2 years...what does that actually mean?
    I was paying one a whopping £75 a month (the rest roughly £20) when I was working as this is what they were demanding...is that showing preference?

    Thanks in advance!!!!
    RoseyMarie :)

    The real measure of your wealth is how much you'd be worth if you lost all your money. ~Author Unknown
  • elfieb
    elfieb Posts: 530 Forumite
    roseymarie wrote: »
    Hi this was my previous thread:
    http://forums.moneysavingexpert.com/showthread.html?t=2253451

    Can anyone help me with this bit:
    Also in the stuff about the DRO it says that you must not have preferred any creditors over others in the last 2 years...what does that actually mean?
    I was paying one a whopping £75 a month (the rest roughly £20) when I was working as this is what they were demanding...is that showing preference?

    Thanks in advance!!!!


    It bascially means stopping paying a creditor in preference of paying another creditor.
    It doesnt matter that you were paying £75 to one creditor and £20 to another, you were still paying all creditors, and therefore not showing a preference :)
    I used to be Snow White, but I drifted.
    Mae West
  • Thanks so much, that makes sense!!
    RoseyMarie :)

    The real measure of your wealth is how much you'd be worth if you lost all your money. ~Author Unknown
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