Cannot have DRO Because i sold Mobile On Contract

coinxoperated

Unfortunately, very few companies seem to understand what a DRO is. I had issues with O2, council, British gas, insurance etc. Infact many said 'the DRO won't apply to us'. I ended up getting fed up with having to teach them and eventually told them to go and read up on it.

They know what an IVA and Bankruptcy is. DRO's have been around for over 3 years, it's about time they updated their scripts!!!

National_Debtline

Hi Steve,

Like the others have already mentioned there is no reason why you wouldn't be able to go ahead and have a DRO. The only issues that could possibly arise as far as we can see are:
a) If you sold the handset at undervalue (as already mentioned)
b) If you used to sale proceeds to pay some creditors with a preference over others.

Doing both of those should stop you from actually having a DRO - although you *could* be asked/forced to adhere to the restrictions of a DRO for longer than the usual 12 months. That said we've only come across a couple of examples of where such a restriction has been put in place.

Best wishes,

National Debtline.

Stevelaffinuk

Hi thxs for all the replys

I sold the phone for £300 just so that we could live i didnt pay any creditors or anyone any money and it was a cash transaction

Also i have spoken to the National Debtline and they have said it may go through it may not

Think they def want to be sure and dont want me to waste £90

debt_doctor

Stevelaffinuk wrote: »

i have spoken to the National Debtline and they have said it may go through it may not

I cant imagine where it would feature on your application?
It isn't a transaction at undervalue or a preference. The sale of the phone has no relevance.

DD

Stevelaffinuk

debt_doctor wrote: »

I cant imagine where it would feature on your application?
It isn't a transaction at undervalue or a preference. The sale of the phone has no relevance.

DD

Ive no idea but i can go bankrupt at the price of £750

CCCS said it thats my only option as they said the phone company can refuse the DRO

debt_doctor

Stevelaffinuk wrote: »

Ive no idea but i can go bankrupt at the price of £750

CCCS said it thats my only option as they said the phone company can refuse the DRO

Well Steve, I find it all bizzare, I'm an authorised intermediary who processes DROs week in, week out, and so are some of my colleagues on this board.

DD

sc1_2

Won't the iphone you sold be blocked by the network once you stop paying the bill? Someone will have an expensive paperweight.

fatbelly

Stevelaffinuk wrote: »

Ive no idea but i can go bankrupt at the price of £750

CCCS said it thats my only option as they said the phone company can refuse the DRO

I think you've got two options:

1. Pay £90 on the barcode (have they provided it to you?) and insist they submit the application. The AI is not allowed to refuse to submit it but can tick a box that says they don't agree. I can't see any reason why the application would not be accepted but ticking that box would cause it to be scrutinised and I do prefer my applications to be as unremarkable as possible. So

2. The other option is to get some other authority (Payplan, National Debtline, CAB etc) to make the application.

If you applied to the courts for bankruptcy (£700 BTW not £750) there is every chance the court would turn you away and suggest you applied for a DRO!

Stevelaffinuk

Hi guys i think i will give National Debtline a go as i cant afford the money to go bankrupt

So Dept Doctor do u think it should go through i cant afford to lose £90 then pay to go bankrupt

Funny thing is the gf can have a DRO but i cant because of the phone

fatbelly

Has that mobile contract had all its fees added? There's usually a hefty termination fee. If not, it might not be a bad idea to hang on until the amount being claimed has settled to its final figure.

If you're switching to a different organisation, ask CCCS if they can send you a copy of your credit report, as they will have got one from Experian.