Debt Relief Order

abby1234519

Well I;m going to be getting me a Debt Relief Order at the beginning of 2010. I've got the paperwork I just have to get some bank statements and all that.

I'm a student, the reason I'm doing it now is because when I finish uni in 3.5 years I will only have a couple of years before its off my credit record. My dad told me to do this and I agree

I was told that my student overdrafts can't be taken into account at all. I have 3 so that means I will still have debt to pay off. But thats easier to handle than the other 6k. I've got about 1.5k of overdrafts. I'm not going to increase them. I don't think I could anyway. I don't think I need to really to be honest. I can live with my grants and loan.

Is this definately right about the overdrafts do you think?

abby1234519

blind-as-a-bat wrote: »

Your dads wrong. It is not a simple as 'being off your file in a couple of years'

Regards, Blind, a bankrupt who had no choice

PS A DRO is the same as declaring bankrupt, just in case you did not realise.

PPS, if you really wish to learn the implications of your intentions, ask me in the new year, have not time to read your past posts right now

I am fully aware that it isn't simply off your file. I was simplifying it.

adrianelliott

The DRO would wipe out your student overdrafts and your credit cards, however your student loan would be unaffected. Thats my understanding based on this document: http://www.insolvency.gov.uk/pdfs/guidanceleafletspdf/droguide.pdf

This DRO will adversely affect your life in so many ways, it also leaves you open to criminal prosecution if you break its terms (as you've already said you have had trouble controlling your financial behaviour).

I think you should explore all the other options first. Ones that spring to mind are:
1) Informal arrangements with creditors to freeze interest until you graduate.
2) IVA - not bankruptcy, but would still wreck your credit file.
3) Drop out of Uni and get a job, or take a leave of absence. Perhaps not the best economic climate for it though.

Good luck, I hope it works out for you.

fatbelly

adrianelliott wrote: »

The DRO would wipe out your student overdrafts and your credit cards, however your student loan would be unaffected. .

This is true. Student loans are 'excluded' debts. Overdrafts aren't.

We don't have enough information about your circumstances to give advice, so we must assume that 'both Citizens Advice and the financial team at university have advised that I seek out a DRO' means that they have run you through the options and implications and that this is the best route for you.

If you want more detailed info on DROs, I suggest posting on the bankruptcy board where the resident experts like Debt Doctor will be able to help.

Hope you get sorted real soon.

abby1234519

I had written to my creditors, explained the circumstances but they refused to freeze interest, I didn't know whether sending a psychiatrists letter would make much difference. Its something that will plague the rest of my life, even on mood balancers I'm still likely to have an episode. I know that the implications of having a DRO will affect my life afterwards.

I thought if I went through a DRO whilst I was at university it would be better than going through one after uni. I wasn;t sure about the student overdrafts, I don't need them but the National Debtline advisor said as it was a student debt it isn't counted. But it is a form of credit so I don't understand that

fatbelly

There's another factsheet here that might be easier to read

Factsheet Debt Relief Orders

rainbowj63

is it the general opinion that DRO s are bad things, i have just been advised by CCCS to do one whereas i was expecting them to say a debt management plan would be ok