debt relief order help please!

zam121

hi guys any help/advice please. amconsidering a debt relief order, i owe about 7000 carfinance, 5000 bank loan and then 1/2 phone bills totalling 1000.how do i apply for this if i dont know exact figures as the debts are 2/3 years old? and how long will it take to enforce. started having bailiffs coming around again after so long.

fatbelly

Hi Zam

I just came across this from your other thread.

You need to read up on DROs to make sure you qualify and understand how they work

Factsheet Debt relief orders

Official Guide

I was thinking that this might be the way forward for you as soon as I read that the car finance was not statute barred (six-year rule). Those guys are not bailiffs btw, not if there's no ccj on the debt.

You are going to have to stick your head above the parapet if you are going to collect all the info on all of your debts - credit reports are the best way. That may attract debt collectors to your current address so you need to be sure you're going through with the DRO.

I would try your local CAB as a start - if they are geared up for these things (if they have Approved Intermediaries) then it can be a matter of weeks. The slowest part is often the client finding and paying the £90 fee

Edit: N.B. Tax credit and other benefit overpayments must be included - also, your car must be valued at less than £1000 on Parkers Guide

zam121

just spoke to dro advisor who said because i have a payday loan of arount 250 i would have to change bank accounts and she recommended 1 for 12.50 a month.is this right? also checked my credit file and total amount owed adds upto 13800. however i do have a tax credit overpayment of 1500 which is not included because i am paying it back frommy existing tax credit claimis that ok?or would i have to add it? if added it would take me over 15000. and finally if i set everything in motion now how long amilooking at for the dro to start?

fatbelly

The balances on your credit files are not always accurate so your advisor may want to contact the creditors to get the latest figures.

Benefit overpayments are liabilities so if the grand total is over 15k then you are looking at full bankruptcy.

Who did you speak to about your DRO? I can see why they may recommend a new bank account (the payday loan co probably has your debit card details and you may have other debts connected to it like the loan) but why recommend one with a 12.50 fee? That sounds really dim.

zam121

i am making payments on my tax credit overpayment so dont really want to include it! its not showing onmy credit file. as for change of bank accounts. since the payday loan i have changed banks anyway.but the advisor said i would still have to change and there would be 12.50 monthly fee for changing to that account! also the guys that came the other day if they are not bailiffs who are they? have checked credit report and dont have any ccjs. finally do the people i owe money to know that i have checked my credit file.

fatbelly

You do need to read the official guide. End of section 6:

You must

be aware of what may happen if you leave out information required in the
application form. The official receiver may refuse to grant you a DRO if
they find information you left out while considering your application, or
may cancel the DRO if they learn later that you left information out. This
would mean you may be at risk of actions from your creditors. If the official
receiver thinks the information you left out was very serious, you may also
be charged with a criminal offence and/or be subject to civil actions, such
as a debt relief restrictions order (DRRO).

There are lots of debts that do not appear on credit files - they all have to go in.

You can open a basic bank account, fee free, with any bank, in theory. Just make sure it's one not connected to your other debts. Was your 'adviser' an employee of a bank, by any chance?

The guys who came around would be debt collectors. Even if they came from a company that employs bailiffs, they cannot act as bailiffs on a credit debt without the backing of the court.

Not sure on your final question - I think the answer may be yes

zam121

thanks for your advice. so if not all my debts show on a credit search,how can i check them? they are 2/3 year old debts so got no paperwork just what is on my credit file

wba31

zam121 wrote: »

thanks for your advice. so if not all my debts show on a credit search,how can i check them? they are 2/3 year old debts so got no paperwork just what is on my credit file

I'm sure if you called the creditors (their numbers are often in the back of the credit report) they could find out your details, at the end of the day they will want their money back from you. Also the tax credit overpayment must be included, unfortunately if it takes your debt total over £15000 the DRO will not be an option, but you may then look at bankruptcy and have your debt dealt with that way.

Who are you receiving your advice from?

radio-jo

Surely if you're paying £12.50 a month for a bank account the OR or your advisor helping you with your DRO would tell you to ditch it and get a basic bank account?

Please get your information from someone like the National Debtline (http://www.nationaldebtline.co.uk/) or CCCS ( http://www.cccs.co.uk/ )

zam121

did internet search for dro, and came up with a site that deals with all kinds of dro.debtmanagment,bancruptcy.the advisor told me to change accounts.also onmy credit report it says on some loans it gives a different figure for balance and then a different figure for default balance. which figure do i use?

wba31

zam121 wrote: »

did internet search for dro, and came up with a site that deals with all kinds of dro.debtmanagment,bancruptcy.the advisor told me to change accounts.also onmy credit report it says on some loans it gives a different figure for balance and then a different figure for default balance. which figure do i use?

You need to use the outstanding balance. As Radio-Jo said, why not give CCCS or NDL a ring, they will look through your credit report etc for you and make sure that doing a DRO is the right thing for you.