Too little to go BR?

jopwo_87

Im just in the considering stages here and trying to get all the info together so i can make a better decision but i was wondering whether my debts are too little to apply for a DRO? I have around £6200 worth of debt now. (my sig is wrong ATM) but i have no hope of paying this back in the near future. I am at college now and will be at uni (hopefully!) next year for 3 years and i would love to be able to go with a clean slate. Iv had my debts since i was 18/19 and iv paid back literally thousands and thousands of pounds worth. Over the last few years i would estimate iv paid back around £12000 whereas my total debt all told was originally about £6000.

skylight

A DRO depends entirely on your assets and how much you have, you are only allowed £300 of assets so a car would push you over that.

It also depends on how the debt is made up; so if its student debts or fines etc then these cannot go into a BR pot anyway.

oregonuk1

Some people go bankrupt for £1000.00 or £750.00 is the least I know


oregonuk1

philnicandamy

Yep bankruptcy can be as little as owing £750...but oregon DRO's are slightly different

kew63

See if you can talk to one of the debt charities, who should be able to tell you whether BR or DRO are suitable for you and the implications of both for your own circumstances.
National Debtline are very good and have great info sheets on their website.
Good luck

jopwo_87

Thanks everyone.
Just to say i dont own a car at present, i fit all criteria its just something im playing with the idea of at the moment.

Also what happens after, after the 12 months. And will i ever be able to get a morgage?

philnicandamy

jopwo_87 wrote: »

thanks everyone.
Just to say i dont own a car at present, i fit all criteria its just something im playing with the idea of at the moment.

Also what happens after, after the 12 months the dro will then end..similar to discharge in bankruptcy. And will i ever be able to get a morgage? eventually although the required deposit will be pretty hight for a few years

hth....... :d

jopwo_87

Im sorry to ask another question thats probably been answered elsewhere but i wonder if anyone knows at what point should you apply for a new account. Iv applied for the co-op one today and iv also made the first step towards the DRO and am awaiting the paperwork to come through. I did mention to the guy on the phone about the DRO and he said it should be ok but he couldnt confirm this for me. Once the new account is set up im planning to have my benefits payed into that account but my worry is, i literally am living by every penny and cant afford to have the money/account frozen so want to make sure.

jopwo_87

Shameless bump.....

alastairq

the freezing of a ]basic] bank account is a worse-case scenario.

Usually it happens only if one has a significant amount of money in the acount, and the OR expresses an interest.

In your case, there isn't likely to be any interest...but you could always empty the account beforehand...just in case?
[I didn't have either account frozen...]

jopwo_87

Brilliant thanks