New DRO application

CraigD

Good day all.

I am currently unemployed and wish to apply for a DRO. I have sent my Experian credit report request in the post.

I have debts on a loan and credit card with the Coop and a Barclaycard and Santander credit card.

First of all I understand that I cannot prevent Coop from taking my loan payment out on the first of the month until the standing order has been transferred to my new bank account with LloydsTSB. However because I have an overdraft with Coop can they still take the funds from the overdraft leaving me overdrawn and having to pay interest charges?

Should I cancel the overdraft immediately and even close the bank account? LloydsTSB are in the process of moving all my direct debits and standing orders over.

Also should I contact my creditors immediately and explain my circumstances in the hope I can come to an agreement or is it best to wait until I have been accepted for the DRO and then contact them?

Cheers

Craig

wba31

I would cancel all payments from your new account to debts, only pay your priorities. If you feel you are eligible for a DRO then you cannot afford to make contractuals. If Co-op attempt payment from your overdraft and send that overdrawn then you can simply include that as a debt on your DRO. you may get charged but that simply takes the balance higher, and as long as you include the full balance in the DRO, you will not have to pay it