What Is this New "Mini-Bankruptcy" Law?

Truegho

I have heard that the government recently introduced a kind of "mini-bankruptcy" law, that costs just £90 and is not as long-winded legally as the conventional bankrupty process. Apparently, the CAB arrange all this for you, and it completely erases all your debts and you start again with a clean slate.

Has anybody applied for this? If so, do you recommend this as the BEST option for anybody who is unemployed and has fell behind with all their creditors?

Holes_in_my_pocket

irs called a debit relief order

tigerfeet2006

We have had several posters who are in DRO's (Debt Relief Order's). See the sticky at the top of the board.

Give one of the Debt Charities a ring (links and no's in my sig.) and go through your options with them. With out knowing your full circumstances we can't advise whether it is the right thing or not. If you are advised to take the DRO or BR route then we can help and support you through the process.

tmcd01

This is for debts that total below £15k. Its a debt relief order. Theres loadsa info on this site, have a good look. There are a few people who have done it, like everything else, you need to look at your individual circumstances to see if it is best for you.

philnicandamy

FYI

http://forums.moneysavingexpert.com/showthread.html?t=1385275

although its seen as "mini bankruptcy" it still has very similar implications to your credit history etc...do as TF suggested & speak to one of the free agencies SOON

MommaDee

Hey. I!!!8217;ve been advised that if I go with mini bankruptcy with CAB that I will be a bale to get credit and it won!!!8217;t effect my credit rating like a normal bankruptcy does. That I will be able to apply for a mortgage later on in life and I get to keep my bank account but just wipe debt?

Craig1981

MommaDee wrote: »

Hey. I!!!8217;ve been advised that if I go with mini bankruptcy with CAB that I will be a bale to get credit and it won!!!8217;t effect my credit rating like a normal bankruptcy does. That I will be able to apply for a mortgage later on in life and I get to keep my bank account but just wipe debt?

the original thread is 9 years old - i'd suggest moving or opening a new one.
but in short, no. your file will still be affected for 6 years after 1st default on your accounts

National_Debtline

Hi MommaDee and welcome to the forum


As Craig1981 says, you're best to open a new thread as this one is very old. There is an IVA & DRO board that you can post on. However the information you have been given is not correct.


A debt relief order (DRO) will be recorded on your credit file for 6 years in just the same way as bankruptcy. It's also possible that your bank account might be frozen, depending on your bank's policy.


If you are asked on a mortgage application if you have ever entered in to a form of insolvency or a DRO you will have to declare it, in the same way if you were asked if you'd ever been bankrupt.


Best wishes


Susie
@natdebtline