DRO and debts incurred outside the UK

radio-jo

I was considering going BR but I think I might be able to get a DRO instead, and it seems like a better option as it's all over after 1 year as opposed to 3 with BR.

My problem is, 90% of my debt is with banks in another EU country.

Will a DRO permanently relieve me of those debts as would happen with BR, or does it only cover debts incurred in the UK?

debt_doctor

radio-jo wrote: »

I was considering going BR but I think I might be able to get a DRO instead, and it seems like a better option as it's all over after 1 year as opposed to 3 with BR.

My problem is, 90% of my debt is with banks in another EU country.

Will a DRO permanently relieve me of those debts as would happen with BR, or does it only cover debts incurred in the UK?

Now there is an interesting question!

There are two main references that intermediaries use to decide issues around DROs. The first is the guidance notes and the second is the DRO section of the technical manual. Ive looked at both and see no mention of debts outside the UK.

My thoughts are that as DROs come under the 1986 Insolvency Act then you could take reference from the main section of the technical manual which states that any proceedings sanctioned by a court in any member state shall have equal validity in other member states - but DRO's do not involve the court!

A call to the insolvency service helpline might be of value.

DD

fatbelly

A DRO does prohibit any legal (court based) remedy against the debt. So my gut feeling is that this would be covered but agree this is something to check with the DRO unit/IS helpline. It's not come up for me yet!

radio-jo

Thanks guys, i'll call them on Monday. *crosses fingers*

radio-jo

I just called the national debt helpline - a fantastic service which I recommend to anyone with debt problems - and they said yes, a DRO covers debts in any EU member state.

Will double check with the insolvency service on Monday but NDH were very certain about this so, that's a weight off my shoulders.

debt_doctor

Would you let us know what the Insolvency helpline say? - it saves me checking up!

DD

radio-jo

debt_doctor wrote: »

Would you let us know what the Insolvency helpline say? - it saves me checking up!

DD

Sure, no problem!

fatbelly

Radio-jo

You need to edit your previous post to take your name out!

That's a really unclear message from the IS.

fermi

radio-jo wrote: »

Hmm. Got this from the Insolvency Service.

If you apply for a Debt Relief Order you will need to include all the debts that you owe and if the application is approved all the creditors listed will be notified. However the Insolvency Legislation that covers Debt Relief Orders relates to England & Wales therefore any creditors outside of these countries may not recognise the terms of the Order.

If you have any further questions please do not hesitate to contact us.

I get what they are saying, but no, not really a helpful explanation.

debt_doctor

fermi wrote: »

I get what they are saying, but no, not really a helpful explanation.

....But the Insolvency Act 1986 which covers BR and DROs is legislation that covers England and Wales, but in BR there are agreements in place europe wide - what if you include a Scottish debt in a DRO?????

radio-jo

debt_doctor wrote: »

....But the Insolvency Act 1986 which covers BR and DROs is legislation that covers England and Wales, but in BR there are agreements in place europe wide - what if you include a Scottish debt in a DRO?????

That's what I was thinking too. Maybe they don't get asked this question a lot and assumed that as it's part of English and Welsh law it only covers debts in those countries?

I'm going to double check with the CAB and national debtline again. It's all very confusing - isn't a DRO part of the law on bankruptcy? A 'normal' bankruptcy extends to debts all over europe so why wouldn't a DRO?

And thanks to whoever removed the post where I accidentally left my real name in the email from the insolvency service :-)