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Debt Relief Orders, debts inflated by charges ...

in IVA & DRO
21 replies 1.8K views
How would this work? Your debts, without late payments fees/charges were dramatically lower than they were before those things. Are these ignored ie they weren't part of the original debt but added in the months afterwards? Or are they included. Because, if so, it's going to take a lot of people's debts when added (without those fees) over the £15000. Leaving them in a difficult situation if they can't afford to bring those down below if this is the case. So, how are these considered within a DRO? Debt with or without added fees?

Also, can you leave ANY debts out that will take it over that limit or do you have to include ALL.
Any help, opinions, views I may hold those are my own. Respect them as you would expect the same in return. Offered freely, is gleaned from a lifetime of experiences, knowledge gaining. Passed on to benefit others. I may be direct, ask you questions but those are to help you. Up to you if you choose to take it. I won't judge you either way.
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Replies

  • fatou256fatou256 Forumite
    1.3K Posts
    very trued merlin considering that one of my creditor continuing to charge late payment fee even though they knew i was BR and they had the cheek to ask me to pay it back !
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  • Lost2Lost2 Forumite
    15.5K Posts
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    I had the same problem with all my credit cards they knew I was BR but keepd on sending statements with £12 for late payment and also £12 for over limit :confused: whats that all about :eek:
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  • Well, what I meant was: if (unlawful BTW) charges are included then, clearly, it is going to make those debts that would have been under £15000 without those added a waste of time to those it is targeted at. In other words your card debt was initially under £500, with all the late charges etc it gets pushed up to over £1000 over the months before a DRO came into being. As will all the other debts that get charges that could be included. Is there anything in this process that is taking that into consideration at all? Or do many lose before they have even started and left with the severe strain of knowing that they will only face potential BR in the end anyway. :confused:
    Any help, opinions, views I may hold those are my own. Respect them as you would expect the same in return. Offered freely, is gleaned from a lifetime of experiences, knowledge gaining. Passed on to benefit others. I may be direct, ask you questions but those are to help you. Up to you if you choose to take it. I won't judge you either way.
  • elfiebelfieb Forumite
    530 Posts
    The OR has the right to "ignore" any charges which they feel as unfairly pushed the debts over the £15k limit.
    When having the interview with the intermediary, they asked you to state your "last available" statement, well aware of companies putting on late charges, defaults etc on accounts without knowledge.
    I used to be Snow White, but I drifted.
    Mae West
  • edited 22 May 2009 at 6:39PM
    MerlinexcaliburMerlinexcalibur Forumite
    1.7K Posts
    edited 22 May 2009 at 6:39PM
    So, basically, if they don't think they are 'fair' then I am just screwed whatever. Will any of this ever stop!!!!!!!!!!!!!! Because by doing either BR or DRO I am paying, taking responsibility for something I am NOT responsible for. But I can't do a bloody thing about it. It's just wrong. I will never allow myself to be used by anyone ever again.
    Any help, opinions, views I may hold those are my own. Respect them as you would expect the same in return. Offered freely, is gleaned from a lifetime of experiences, knowledge gaining. Passed on to benefit others. I may be direct, ask you questions but those are to help you. Up to you if you choose to take it. I won't judge you either way.
  • elfiebelfieb Forumite
    530 Posts
    So, basically, if they don't think they are 'fair' then I am just screwed whatever. Will any of this ever stop!!!!!!!!!!!!!!

    Thats why its important to get on with DRO's asap.
    One of the reasons why I went with Baines and Ernst, rather than waiting 6 weeks for an interview with NDL
    I used to be Snow White, but I drifted.
    Mae West
  • Godiva500Godiva500 Forumite
    440 Posts
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    Merlin, as with ElfieB thats why I went with Baines and ersnt as well. My debts were 14,600 - I couldn't wait. I went for it and got it straight away.
  • Hiya Merlin
    As far as I'm aware unfortunately you need to come under the £15,000 limit including all the charges on on the day you send through the DRO but as
    Elfieb advised if they suddenly pile on a load when they realise what you're trying to do the OR can take a view.
  • edited 22 May 2009 at 7:25PM
    MerlinexcaliburMerlinexcalibur Forumite
    1.7K Posts
    edited 22 May 2009 at 7:25PM
    Sorry for how I am sounding but it's begun to rip me to shreds pretty seriously. And because I am a very very stupid human being who knows why they are in this mess. Justice is something that is forbidden for someone like myself it has turned out. And now it seems I cannot even rid myself of this situation that was created by someone I helped. So it just makes the whole vicious circle even worse. It is so damn wrong I cannot even begin to describe how it makes me feel. Always I have done the right thing, where does it get you in life? Someone took something that was so good and they broke it, destroyed it. Yes, it is all behind me but what is to come from all of it is a reminder which won't ever go away because they are linked. And right when I am trying to start again. Should I even bother trying to. If I am out on the streets, maybe that is where I was headed for all along anyway. After all I deserve it for getting into this mess. Because if it does come to that I know exactly where I will go, which place I will go to. It's a long way to travel but I will get there somehow or other. It's a place I like. Then I will just vanish. Because I don't want anymore of this.
    Any help, opinions, views I may hold those are my own. Respect them as you would expect the same in return. Offered freely, is gleaned from a lifetime of experiences, knowledge gaining. Passed on to benefit others. I may be direct, ask you questions but those are to help you. Up to you if you choose to take it. I won't judge you either way.
  • Merlin, Please don't be so hard on yourself, we're all in the same boat, it will be ok. You sound seriously down, please look after yourself. If a DRO doesn't do the trick go for bankruptcy then start again with a clean sheet.
    Take care.
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