Worried over taking DRO, is it best for me, what could happen?

Merlinexcalibur

I know these are so new, no one really knows the ins/outs and the amount of data online is staggering but also slightly 'disengenious' eg what actually happens for example. Is it as easy as it all seems and not at all like going BR.

My situation is this:

This idea or prospect was dangled in front of me by a money adviser last week who explained they had just come into force (as I knew anyway through reading MSE the last few weeks) and gave me a printed leaflet which is a condensed (but I am concerned it doesn't contain as much info as the Insolvency website does) format but not giving any further information beyond asking for your personal details, supplying bills, for the application. Beyond that, nothing.

For the last year, with the help of CCCS initially, I have been paying most of my creditors token payments. But, with assistance from elsewhere I have been fending off creditors/DCAs where things like CCAs and enforceability are concerned eg ensuring I knew what my rights were and sending the appropriate letters in reply when I felt they were getting too heavy and relying on the obvious fact I would just go away and panic, pay up what I don't have. You've all heard this before so I don't need to explain it. But I have managed to fend them off so far with the letters I had, which were great and knew the legal jargon necessary to make them back off for a while until they tried again. I have been successful in stopping two DCAs using the CCA process and have that in writing from them, account(s) closed.

At no point was I trying to avoid debts, but because I am very ill right now, I just don't have the money to pay them.

Back to my point. This DRO has been dangled under my nose again but if anyone can help to allay my worries with these questions it would take a deeply immense pressure right now off me today because I have been in so much turmoil over it all because I can't find or contact anyone to give me a difinitive answer:

1) I rent, under no circumstances can my estate agents find out about my debts because it is written into my tennancy agreement; nowhere else to live and that very real terror should they find out eg I go BR or DRO I could be evicted/ 50/50 no one can guarantee what will happen and I don't want to start pushing it because that is something I don't want to be worrying over with everything else

2) Would I lose Ebay? Ebay is a vital lifeline for me, as I cannot maintain utility bills if I lose it. Also, PAYPAL as you now cannot use EBAY without that account. I've had both for 9 years now, have a very good reputation on there and never save the money, just use it to survive, stay afloat but without it I will quickly go under and I don't want that to happen, of course; to say my situation is bad now, I honestly wouldn't cope with that and I know I wouldn't

3) I get absolutely no support from my family whatsoever; no emotional support put it that way but a very unsympathetic reaction to the extent I cannot relate to them because they cannot relate to how I feel and they never will

4) Utility companies? I don't want pre-payment meters installing here because I am on IB (my sole source of income, no savings) and I have been warned that if I fall into arrears again they will obtain a court order and instal the meters; by pure chance I spoke to someone at the company months ago, who was able to help me pay off what I owed and I am back to quarterly payments now. But, as I know without things like Ebay, I would quickly be back with that pressure and unable to pay my quarterly bills which, like everyone knows, are sky high even for low users like myself. The other thing is, again, part of my tennacy agreement I must not seek to have such things installed here. So, I have been trying very hard not to let get wind of any of debt troubles including this either by accident or design. Either way, if I had a DRO would those companies automatically install pre-payments? Because if they do that would mean I would have no gas/electricity possibly water if a meter got installed because on my IB I would simply not be able to afford to feed them. But would having a DRO automatically make the utility companies do this? I know from reading some BR posts that some people have found they have done for example after finding out someone has become insolvent.

5) I have no phoneline now, as I cannot pay BT so have to rely on a contract (free phone) which I only just got to replace my phone as a necessity because of health matters but also internet access again for the same reasons. I need both for example to look for work which I am trying to do through various agencies who are supporting me. So they are not luxuries but vital tools for me to use. Naturally, my PC (I just had to buy a new one before Xmas, a very cheap model, basic for example because my old one fatally crashed) I am worried over, too. Eg what would get removed from my home if anything. 'Assets' I don't have a car for example so worried over what they would consider 'assets'.

My debts are below £15000 and as my circumstances are very dire right now, so many things I worry over, I would much prefer to continue making token payments and fending the companies off which I have been for the last year with the letters and so on.

But this 'temptation' if you like is being dangled in front of me, and no one has actually done yet but I was told by my adviser that I apparently have only six months to make an application in from the date of their inception.

What I am trying to say is, I don't want to go rushing into all this without knowing the full facts but I am being 'encouraged' for example to apply when I don't feel very comfortable with it all, have no further information eg what kind of impact is it going to have on my present living situation, but most of all my health is very poor right now and I do not feel I can make this decision without knowing more. Essentially I don't want to jump into anything blindly. Ideally, I would prefer to make token payments, continue to battle with my creditors/DCAs as I have been. I know they won't ever go away but the prospect of applying, thinking about DRO's is utterly petrifying me because there are so many things left unclarified.

I have tried to speak to the money adviser today to clarify these things but have been unable to. It's worrying me sick, making me very ill and I do not know what to do.

If anyone can help to allay my worries here I'd be more than grateful to. Again, I realize no one does know properly and that is also what scares me. The uknown factor.

I am not looking for miracles, just some kind of reassurance as I have been in such a state of panic today over this; more than any DCA letter put together.

I have explained to the money adviser that things like BR I wanted to keep as a final, absolute way out when everything else had been exhausted. And I wanted to continue to paying token payments until I am in a better state of mind (which I am not right now TBH) to make a lucid decision about whether I want this for certain or whether I feel it's going to make things worse for me, to continue battling with creditors as I have been. But I know my money adviser can only do certain things eg not ask for a CCA, question the enforceability and so on like I have been if only to protect myself from certain courses of action because it's a free service. I don't have access to any other services where I live who offer debt advice. I went with CCCS initially, but couldn't help apart from offer token payment letters because I haven't enough for a DMP.

I know I've posted a lot and apologize. Sorry to go on.

tigerfeet2006

Merlinexcalibur wrote: »

I know these are so new, no one really knows the ins/outs and the amount of data online is staggering but also slightly 'disengenious' eg what actually happens for example. Is it as easy as it all seems and not at all like going BR.

My situation is this:

This idea or prospect was dangled in front of me by a money adviser last week who explained they had just come into force (as I knew anyway through reading MSE the last few weeks) and gave me a printed leaflet which is a condensed (but I am concerned it doesn't contain as much info as the Insolvency website does) format but not giving any further information beyond asking for your personal details, supplying bills, for the application. Beyond that, nothing.

For the last year, with the help of CCCS initially, I have been paying most of my creditors token payments. But, with assistance from elsewhere I have been fending off creditors/DCAs where things like CCAs and enforceability are concerned eg ensuring I knew what my rights were and sending the appropriate letters in reply when I felt they were getting too heavy and relying on the obvious fact I would just go away and panic, pay up what I don't have. You've all heard this before so I don't need to explain it. But I have managed to fend them off so far with the letters I had, which were great and knew the legal jargon necessary to make them back off for a while until they tried again. I have been successful in stopping two DCAs using the CCA process and have that in writing from them, account(s) closed.

At no point was I trying to avoid debts, but because I am very ill right now, I just don't have the money to pay them.

Back to my point. This DRO has been dangled under my nose again but if anyone can help to allay my worries with these questions it would take a deeply immense pressure right now off me today because I have been in so much turmoil over it all because I can't find or contact anyone to give me a difinitive answer:

1) I rent, under no circumstances can my estate agents find out about my debts because it is written into my tennancy agreement; nowhere else to live and that very real terror should they find out eg I go BR or DRO I could be evicted/ 50/50 no one can guarantee what will happen and I don't want to start pushing it because that is something I don't want to be worrying over with everything else In BR the OR will quite often talk to your LL but I am not sure they will do that with a DRO. Supply a copy of your tenancy agreement to the person acting for you in the DRO. A DRO is not advertised in the paper like a BR so they wom't find out that way.

2) Would I lose Ebay? Ebay is a vital lifeline for me, as I cannot maintain utility bills if I lose it. Also, PAYPAL as you now cannot use EBAY without that account. I've had both for 9 years now, have a very good reputation on there and never save the money, just use it to survive, stay afloat but without it I will quickly go under and I don't want that to happen, of course; to say my situation is bad now, I honestly wouldn't cope with that and I know I wouldn't In BR an ebay and paypal account are not looked at if you are just selling your own goods. Again you will have to talk to the person acting for you if you are using it as a major part of your income.

3) I get absolutely no support from my family whatsoever; no emotional support put it that way but a very unsympathetic reaction to the extent I cannot relate to them because they cannot relate to how I feel and they never will (((hugs)))

4) Utility companies? I don't want pre-payment meters installing here because I am on IB (my sole source of income, no savings) and I have been warned that if I fall into arrears again they will obtain a court order and instal the meters; by pure chance I spoke to someone at the company months ago, who was able to help me pay off what I owed and I am back to quarterly payments now. But, as I know without things like Ebay, I would quickly be back with that pressure and unable to pay my quarterly bills which, like everyone knows, are sky high even for low users like myself. The other thing is, again, part of my tennacy agreement I must not seek to have such things installed here. So, I have been trying very hard not to let get wind of any of debt troubles including this either by accident or design. Either way, if I had a DRO would those companies automatically install pre-payments? Because if they do that would mean I would have no gas/electricity possibly water if a meter got installed because on my IB I would simply not be able to afford to feed them. But would having a DRO automatically make the utility companies do this? I know from reading some BR posts that some people have found they have done for example after finding out someone has become insolvent. Why don't you change utility companies. Follow Martins guide on this. Then you should have no problems. They don't automatically put in meters in BR.

5) I have no phoneline now, as I cannot pay BT so have to rely on a contract (free phone) which I only just got to replace my phone as a necessity because of health matters but also internet access again for the same reasons. I need both for example to look for work which I am trying to do through various agencies who are supporting me. So they are not luxuries but vital tools for me to use. Naturally, my PC (I just had to buy a new one before Xmas, a very cheap model, basic for example because my old one fatally crashed) I am worried over, too. Eg what would get removed from my home if anything. 'Assets' I don't have a car for example so worried over what they would consider 'assets'. Your mobile should be fine as long as the bill is not excessive. Your internet will have to come from any surplus you have. How much did you pay for your computer? They will take assetts of £300 or more.

My debts are below £15000 and as my circumstances are very dire right now, so many things I worry over, I would much prefer to continue making token payments and fending the companies off which I have been for the last year with the letters and so on.

But this 'temptation' if you like is being dangled in front of me, and no one has actually done yet but I was told by my adviser that I apparently have only six months to make an application in from the date of their inception.

What I am trying to say is, I don't want to go rushing into all this without knowing the full facts but I am being 'encouraged' for example to apply when I don't feel very comfortable with it all, have no further information eg what kind of impact is it going to have on my present living situation, but most of all my health is very poor right now and I do not feel I can make this decision without knowing more. Essentially I don't want to jump into anything blindly. Ideally, I would prefer to make token payments, continue to battle with my creditors/DCAs as I have been. I know they won't ever go away but the prospect of applying, thinking about DRO's is utterly petrifying me because there are so many things left unclarified.

I have tried to speak to the money adviser today to clarify these things but have been unable to. It's worrying me sick, making me very ill and I do not know what to do.

If anyone can help to allay my worries here I'd be more than grateful to. Again, I realize no one does know properly and that is also what scares me. The uknown factor.

I am not looking for miracles, just some kind of reassurance as I have been in such a state of panic today over this; more than any DCA letter put together.

I have explained to the money adviser that things like BR I wanted to keep as a final, absolute way out when everything else had been exhausted. And I wanted to continue to paying token payments until I am in a better state of mind (which I am not right now TBH) to make a lucid decision about whether I want this for certain or whether I feel it's going to make things worse for me, to continue battling with creditors as I have been. But I know my money adviser can only do certain things eg not ask for a CCA, question the enforceability and so on like I have been if only to protect myself from certain courses of action because it's a free service. I don't have access to any other services where I live who offer debt advice. I went with CCCS initially, but couldn't help apart from offer token payment letters because I haven't enough for a DMP.

I know I've posted a lot and apologize. Sorry to go on.

Sorry I can not be more reassuring to you but as you have said it is all new to us.

The only people who can help with a DRO are specialists who have been trained in this. These include people at your local CAB, National Debtline and CCCS. Numbers and links in my sig. Please be aware they are all very busy at the moment, it took me 25 minutes the other day to get through to NDL by dialing, hanging up and pressing redial so please be patient, get comfortable and ring them.

And don't worry about off loading 'tis what we are here for.

Merlinexcalibur

Hi, thanks for replying. No, you've reassured me a lot with some of the main points. Earlier was like a headless chicken flapping about with worry over all of it for example. Bit like everyone's stumbling around in the dark right now over all this DRO stuff.

My PC was less than £200. Basic model from PC World.

From what you say Ebay looks safe as I am not running it as a business.

Thought about CCCS earlier but trying not to run up a massive bill on my mobile again like this month. I do get just over 1 and a half hours free calls but quickly gets eaten with being put on hold a lot. But I will get round to it.

Was thinking about changing suppliers after I read Martin's thing. Will have to look into it.

My internet is mobile broadband because of falling into arrears with my previous provider. So, could only get back online that way and it's £15 a month which isn't bad but capped. Phone is the same per month excluding call charges. Both I just started off with so early into the contract. I do have a PAYG phone but it was getting a nuisance topping up a minimum of £5 each time when I only used it very sparingly, when I had my landline and inclusive calls, for only one call. Then it quickly mounted up to way too much per month because instead of racking up huge amounts on BT on 0870 for example with my creditors, I used that to not run up a debt. Except, now I have with BT. And bye bye phone line. Not physically cut off yet but will be soon I think, just not able to use the line.

I know I will lose my bank account but, fortunately, sometime last year when I knew things could get worse I opened a Cashminder account. Never used it, though.
But did make sure last night online I could still use debits/standing orders. It's my other basic account I've found I can't for example as it's for under 16 year olds. But I've been told I would lose that. And my main current account, of course.

Would the best thing for me to do when I decide to do this to remove all money from my main bank accounts? I know the answer is probably yes, but just wondering about it all.

But your reply has bolstered me significantly from how I was earlier. Thank you.

So_Sad_Angel

Hiya Merlin,

Great post , (was a bit War & Peace :D....I`m kiddin` Hun!!:D)....but must be many people out there who are unsure about DRO`s as they are so new & going forward will need much clarification.

Tiger answered most of what I could (& shes quicker than me!!) but will say that the more this option is discussed then naturally the more clarity will ensue.

You have the support of a debt advisor but there is no substitute for building a sound, factual knowledge base that I know you are doing - well done.

I imagine your case will reflect many reading this so please share the info/questions that arise.

Angex

Merry_Gentry

Just wanted to say well done for posting :grouphug:. It's difficult as none of us have been through DROs yet, so can't help with the reality of them, rather than the 'this is what it says on paper'.

I can say in bankruptcy, we generally say to move towards the cashminder account and take all the cash out prior to going as then you can use it for living expenses, etc while any frozen accounts, etc are sorted out.

If you're not sure about what to do, then I would suggest getting advice from another source. It sounds from what you have said that it is being 'dangled' in front of you as the cure to all of your ills, and it might well be, but getting further official advice should reassure you of that.

Merlinexcalibur

So Sad Angel. Don't worry, I know that already. I find I am useless at condensing myself but have utterly no troubles doing it for anyone else.

Something just thought about? Is it possible to get a free credit report eg from Experian? I've obtained a copy a while back online (just got curious, was when I wasn't in debt and never seen one before) and discovered someone elses name on my report who had moved into my flat. Didn't seem to affect me in anyway, was flagged though, but was curious; only because I knew what they did for a living beforehand, though. 'Debt management' but with vans. . Wasn't too sure about it, but now worry (because my landlord at the time wasn't above switching or putting debts in other people's name to avoid being liable for them himself I found out over time; mail would get opened for example on the communal table each morning before we collected it then resealed; usually utility bills or council tax or switching the supplies round in flats in the basement to each flat in the building) I might find debts in my name I haven't run up. Would this impact on any DRO for example? In fact, I know he did because of mail when I had mysteriously forwarded to my new address when I moved out. And what other tennants told me went on. Ignored it, though, because was nothing to do with me.

So_Sad_Angel

If DRO`s are in the same vein as BR then any unsecured debt ( thats ANY DEBT !) in your name at the BR date falls into the BR order & you are no longer liable....irrespective as to whether you ran up the debt or not. This also applies if you omitted/were unaware of that debt at the time of the BR petition.
The only exception is secured debt ie property.

Angexx

Ps Hi Merry.....must get one of those corsets!!!

Merlinexcalibur

Well, no property. Except I do have a piano (which, despite what my silly family says otherwise, I have found out is or potentially worth something; my mother got it when I was very young, to enourage me to learn; I never did, but did when I got older) which from my research of the reference inside via an online archive for those pianos is quite rare. Don't know if it is, but I also wouldn't know how to value it. Never parted with it because I used to be an accompanist for example, so I keep it just in case I ever do that again and because it was one of the only things I saved from my parents house before my family ransacked the place; very sad all that was, was like someone had broken in, torn the place apart.

I could have had a house, except my family sold it; hence why I have to rent forever now. Can't undo anything, of course, but I am sure I wouldn't be here, right now talking about it if I still lived there. Everyone was astonished in my street who knew my mother very well through various things she did in the village, that I had gone so suddenly from there. A chance meeting months later with someone I knew from there and they told me how shocked they were. I was there one moment, gone the next.

I felt I couldn't fight them, not with grieving over losing both parents, but everyone around me relatives of friends of my mother/father all said I should have. But I didn't, I couldn't. Only one of me, and I didn't want to. It's just something I can never forgive them over since. I had such wonderful support, I even had a social life and so many things going for me. I was getting a lot of recognition for things. Being in front of an audience, playing for a choir that I was asked to play for isn't easy for someone like myself. Just gave me a lot of confidence, and that I was able to do something I liked doing. Rescued what I could from the house before they all took everything. Was awful. And I never believed families could react/behave like that. In the years since, I have begun to understand it a little more. But whilst I have come to terms with this loss, though I will never, of course, forget my parents it seems they haven't and that manifests itself very prominently whenever I have contact with them.

But it all got yanked the day I moved from the area, the house put on the market. But my musical heart left me or fled me that day, too, because everything good in my life was gone. So I've never touched the piano since.

But I can only go forwards, all I ever have done these last few years. Encountering new, unexpected situations along the way but I use them to learn from, ready to help anyone else or ready for the next time. Adaptation is something I have become adept at shall we say.

Merry_Gentry

I'm concerned about the piano, honey. That is potentially an asset that could get messed up in the whole DRO business

Merlinexcalibur

Yeah, I know. Does anyone actually come out to visit? Would someone need to list things in the house for example? Still, may not come to all this, hopefully. Just a fall back. And when all else has been exhausted - I live in hope I may work again you see - and armed with more knowledge. But, if it did get caught up, I suppose I could view it like this to salve the pain: it's probably how/what my parents would have wanted it to be used for, eg to be used to help me out. One way of looking at it, I could live with that. I don't think I will ever play again or touch one - though I do have the odd tinkle in Chappels, London whenever I am there - but you never know. But, I could live with that anguish if I thought about it this way.

PlasticPennies

So_Sad_Angel wrote: »

If DRO`s are in the same vein as BR then any unsecured debt ( thats ANY DEBT !) in your name at the BR date falls into the BR order & you are no longer liable....irrespective as to whether you ran up the debt or not. This also applies if you omitted/were unaware of that debt at the time of the BR petition.
The only exception is secured debt ie property.

Angexx

Ps Hi Merry.....must get one of those corsets!!!

Just to clarify, only debts listed on the application at the time of the DRO will be discharged. If you forget a debt, you CAN NOT add it later for a DRO, only with BR.