DRO help appreciated

Lennie33

Hi i'm new to this but hoping to get some help and support

I'm a single mom with 3 children, and have got myself into a mess but hoping to change that this year i'm currently in nearly 5 thousand pounds worth of debt to 7 different people.

I've been reading alot this week on what debt solution would be the best and after working out my incomings, and outgoings i ony have £30 left per month so think a debt relief order as my only solution but i want to find out as much as i can before entering into it.

I have got a problem with one part of the eligibilty of the DRO in that i am the registered keeper of a car which is over the threshold, but i don't own the car it's only in my name due to insurance purposes, i can provide proof of who's car it is etc but it's a shared car so i am not able to sell it, will this make me ineligible?

Also i live in a council house and understand they would be told if i had a DRO, i'm not in any arrears with them but would they be able to evict me based on the fact that i've got a DRO? i have read somewhere that in some tenancies they can.

Are any of my debtors likely to make an objection for any reason?

What information do they need? i'm in process of getting recent statements off everyone i owe, i've got a copy of my credit report will they also need bank statements?

What do i do now before i apply for DRO or while i'm waiting? do i stop paying my debtors or offer a token payment with equal amounts

One of my debts is an overdraft with the halifax bank but i have got a basic account with lloyds which i intend to move everything over ie direct debits (utilities etc) and benefits but it's with the same banking group should i open one up in a totally different bank?

sorry for so many questions i really do want to do everything the right way

Thank you

Lennie

Pobby

Hi Lennie and a warm welcome from me. Hang on in there as I am sure the very helpful folk here will be along shortly with all the answers you need.

fatbelly

Well, Lennie, those are good questions and a couple of them don't have a definite answer..

Lennie33 wrote: »

Hi i'm new to this but hoping to get some help and support

I'm a single mom with 3 children, and have got myself into a mess but hoping to change that this year i'm currently in nearly 5 thousand pounds worth of debt to 7 different people.

I've been reading alot this week on what debt solution would be the best and after working out my incomings, and outgoings i ony have £30 left per month so think a debt relief order as my only solution but i want to find out as much as i can before entering into it.

I have got a problem with one part of the eligibility of the DRO in that i am the registered keeper of a car which is over the threshold, but i don't own the car it's only in my name due to insurance purposes, i can provide proof of who's car it is etc but it's a shared car so i am not able to sell it, will this make me ineligible?

Not a problem - you have the use of a car you do not own and can prove that if required to do so, which you probably won't

Also i live in a council house and understand they would be told if i had a DRO, i'm not in any arrears with them but would they be able to evict me based on the fact that i've got a DRO? i have read somewhere that in some tenancies they can.

Your landlord is not told in a DRO if you are not in arrears with them. I suppose if the house is council-owned and you had council tax arrears or another debt with the council, they might put two and two together. I've never heard of anyone being evicted from council property through a DRO but I suppose the best answer is to check your tenancy agreement

Are any of my debtors likely to make an objection for any reason?

Not a successful one as long as you are honest

What information do they need? i'm in process of getting recent statements off everyone i owe, i've got a copy of my credit report will they also need bank statements?

This is where you need to sort out who will act as your intermediary. I presume you've read the guides - see below.

What do i do now before i apply for DRO or while i'm waiting? do i stop paying my debtors or offer a token payment with equal amounts

Opinions differ. My thoughts are that once you've decided to go down this route, then get the £90 together and be ready to submit the application as soon as possible so don't even bother with token offers.

One of my debts is an overdraft with the Halifax bank but i have got a basic account with Lloyd's which i intend to move everything over ie direct debits (utilities etc) and benefits but it's with the same banking group should i open one up in a totally different bank?

Here again opinions might differ. The two systems are still separate but the one bit that has merged is the old Halifax current accounts in arrears, which are now handled by Lloyd's collection agencies. I don't think you will have your Lloyds account closed but it may be safer getting away from that group.

sorry for so many questions i really do want to do everything the right way

Thank you

Lennie

Factsheet Debt relief orders

Official guide

Lennie33

Thank you poppy for your warm welcome and fatbelly for your brilliant advice i have read both of the links you posted, really appreciate your help.

I'm feeling alot better about things now

Lennie

Pobby

Glad you are feeling better. I am sure that fatbelly will not mind me saying that he is long standing here and is great at offering advice.

fatbelly

Pobby wrote: »

Glad you are feeling better. I am sure that fatbelly will not mind me saying that he is long standing here and is great at offering advice.

Aww. Shucks. Thanks.