DRO - scared, confused, not sure any help?

debtfree2015_2

This is slightly long, appologies, I would appreciate any help.
I got into debt seriously since going on the run from a violent ex. Each time we moved he found us, we moved again. I eventually had to leave my job which was due to a mixture of my little one being a very poorly baby and him coming after me for the umpteenth time.

I didnt know about DMP's / DRO's until I signed up to this site, I wish I had, I would have moved hundreds of miles away first time & saved money - I only stayed local for work.

CCCS calculator originally suggested DMP only just....

However my income will be going down due to government cuts (have been looking for work since we were safe). The CCCS calculator now suggests DRO.

4 things are worrying me..

1)I have read my name & address will be printed online - would this mean if someone searched for my name a search engine would pick it up? Im terrified of being found again, and as you can see I have zero credit to help me get away, so Id beforced into a refuge which Ive managed to avoid for so long.

2)I have in an attempt to start earning again set up a website (costs me £3 a month) - I am not earning anything yet hence relying on housing benefit which is the cut going to cause huge problems for me. Will I be allowed to stay self employed? I have also enrolled on a course, so will be qualified next spring ie 2013 which will help my self employment though in a different area, so if needbe I could stop this self employment until I qualify in other area.

3)I recently applied for PPI, it was successful, Im due the payment in Jan, am I allowed to just leave it in the bank its paid into, then apply for a DRO, - it will clear my overdraft. Or should I split it between creditors then apply for a DRO - if I split it wont the bank who paid it out & one of my main creditors complain when I apply for the DRO?

4) I am yet to default, mainly because Im so scared to! I just shuffle the debts or household essentials between my overdraft & 1 remaining CC (others closed). IF this PPI wasnt being paid in Jan, Id have to default on at least 1 card, then the following month another and so on. Will that stand against me, the fact that Ive never defaulted? I was worried creditors my kick up a fuss that they didnt know there were issues because of not defaulting.

I was going to start cancelling all my debt dd's tonight and get started before I get scared and back out, but my housing benefit still goes to my debt account, I need to get that transfered before cancelling otherwise my rent wont get paid.

Last question - I have a current account with Nationwide ( no debts/no overdraft) are they likely to close my account, should I just ask them?

Id be grateful for any advise

thank you

wba31

Please see my answers in red below...

debtfree2015 wrote: »

This is slightly long, appologies, I would appreciate any help.
I got into debt seriously since going on the run from a violent ex. Each time we moved he found us, we moved again. I eventually had to leave my job which was due to a mixture of my little one being a very poorly baby and him coming after me for the umpteenth time.

I didnt know about DMP's / DRO's until I signed up to this site, I wish I had, I would have moved hundreds of miles away first time & saved money - I only stayed local for work.

CCCS calculator originally suggested DMP only just....

However my income will be going down due to government cuts (have been looking for work since we were safe). The CCCS calculator now suggests DRO.

4 things are worrying me..

1)I have read my name & address will be printed online - would this mean if someone searched for my name a search engine would pick it up? Im terrified of being found again, and as you can see I have zero credit to help me get away, so Id beforced into a refuge which Ive managed to avoid for so long.

You can request for your address to be withheld. An application has to go through the courts, which i believe costs an additional £175, but this can prevent your address being published. The advisor who completes your DRO would also tick a box saying "address withheld" so make sure they are aware of the situation

2)I have in an attempt to start earning again set up a website (costs me £3 a month) - I am not earning anything yet hence relying on housing benefit which is the cut going to cause huge problems for me. Will I be allowed to stay self employed? I have also enrolled on a course, so will be qualified next spring ie 2013 which will help my self employment though in a different area, so if needbe I could stop this self employment until I qualify in other area.

There is nothing to stop you being self-employed, obviously any changes in income (if you have an increase) must be reported to the IS.

3)I recently applied for PPI, it was successful, Im due the payment in Jan, am I allowed to just leave it in the bank its paid into, then apply for a DRO, - it will clear my overdraft. Or should I split it between creditors then apply for a DRO - if I split it wont the bank who paid it out & one of my main creditors complain when I apply for the DRO?

I would wait until after the payment is made before applying for a DRO. If the money is paid to the debt is was for, then this is fine. If a sum is paid to you, in a cheque or something like that, I would split it pro-rata between your creditors to be safe. Remember you could take your £90 DRO fee from it, and you can have up to £300 as cash for yourself, so you can keep a little bit for a rainy day

4) I am yet to default, mainly because Im so scared to! I just shuffle the debts or household essentials between my overdraft & 1 remaining CC (others closed). IF this PPI wasnt being paid in Jan, Id have to default on at least 1 card, then the following month another and so on. Will that stand against me, the fact that Ive never defaulted? I was worried creditors my kick up a fuss that they didnt know there were issues because of not defaulting.

Defaults and where you are in the process will not affect the DRO in any way. If you are eligible for the DRO, it will be granted, there is no judging done on whether it is deserved or not. If i were you now I would stop paying and juggling the creditors around, and focus on getting things together for a DRO. apply for your credit report, and start to get the information together that your advice agency will need to do your DRO

I was going to start cancelling all my debt dd's tonight and get started before I get scared and back out, but my housing benefit still goes to my debt account, I need to get that transfered before cancelling otherwise my rent wont get paid.

Last question - I have a current account with Nationwide ( no debts/no overdraft) are they likely to close my account, should I just ask them?

If you owe no money to them then the DRO should not affect, they will not be contacted so I wouldnt tell them prior to doing the DRO

Id be grateful for any advise

thank you

Standingtall

Hi, I cannot comment on DROs specifically due to lack of knowledge. However, what I can add is that the debt charities are reported to be very busy at the moment, so it would be advisable to contact them and get the ball rolling, so to speak. It may be that you have to wait a while for an appointment.

debtfree2015_2

thank you both for your help.

I will start things now.

Im praying I find a job before the cuts kick in, then I might not have to do this. Im not filled with too much hope as Ive been looking for 9 months, but you never know!

debt_doctor

Hi,

Fee remission is available according to income for witholding the address. We have done this a few times in our office (and for BR) usually for the reasons you describe.
You could also spend some of your PPI monies on essential items.

DD

debtfree2015_2

Thank you.

Ive got the email with the number through to call the dro team at cccs. Will call them as soon as PPI money has come through and Ive taken money I need from it, Il keep reciepts for anything I get from it just incase its questioned.

Scared now, will be glad when its all over.

thank you all again for your advise.

debtfree2015_2

A question please, I was advised by the dro team @ cccs to cancell all direct debits & make no more payments.
My loan payment is due out in 10 ish days. Just logged onto my old account to find they had simply re instated the direct debit! The companies are linked, so now Im worried they will just use the overdraft to cover the loan payment.
What do I do?