DRO or IVA?

falko89

We've been on a DMP for 5/6 years with CCCS and Payplan and to be honest our debt hasn't reduced a great deal so Debt Free Direct contacted us during the week, we went through a telephone meeting where they took all our details and they said we qualified for a DRO and IVA but we are unsure which we should go for.

Both seem quite similar apart from the fact the DRO is for 1 year with a £90 fee and the IVA is for 5 years with no upfront costs, the DRO seems quite appealing at the moment but Debt free direct are trying to sway us in the other direction, probably because its for a longer period which means more money to them,

Any advice on this would be appreciated

debtinfo

Hi Falko,how much debt do you have, do you have any assets,house car etc and what are they worth

falko89

debtinfo wrote: »

Hi Falko,how much debt do you have, do you have any assets,house car etc and what are they worth

We have £15k more or less on the dot, we rent our home, we have a car but its in a relatives name as we could not get credit, its on HP. We have no other assets.

debtinfo

is that 15K each or together, There is a limit of 15K for a DRO but that is for each person, joint debts go on both persons lists

falko89

debtinfo wrote: »

is that 15K each or together, There is a limit of 15K for a DRO but that is for each person, joint debts go on both persons lists

£15k is the pair of us together, no debts are joint debts.

Depth_Charge

falko89 wrote: »

We've been on a DMP for 5/6 years with CCCS and Payplan and to be honest our debt hasn't reduced a great deal so Debt Free Direct contacted us during the week, we went through a telephone meeting where they took all our details and they said we qualified for a DRO and IVA but we are unsure which we should go for.

Both seem quite similar apart from the fact the DRO is for 1 year with a £90 fee and the IVA is for 5 years with no upfront costs, the DRO seems quite appealing at the moment but Debt free direct are trying to sway us in the other direction, probably because its for a longer period which means more money to them,

Any advice on this would be appreciated

Hi

Im just wondering how they have worked out that you qualify for a DRO on the disposable income rule if they say you are also suitable for an IVA (interlocking one by the look of things)

Were you cold called by this company?

As far as I am aware DFD dont administer DROs - hardly any fee chargers do - might be because they cant make any money out of people doing DROs (or should not do)

Have you been advised on bankruptcy and other options?

Any chance of putting up your statement of affairs showing seperate liabilities as this will help people in assisting you further?

falko89

Depth_Charge wrote: »

Hi

Im just wondering how they have worked out that you qualify for a DRO on the disposable income rule if they say you are also suitable for an IVA (interlocking one by the look of things)

Were you cold called by this company?

As far as I am aware DFD dont administer DROs - hardly any fee chargers do - might be because they cant make any money out of people doing DROs (or should not do)

Have you been advised on bankruptcy and other options?

Any chance of putting up your statement of affairs showing seperate liabilities as this will help people in assisting you further?

I made enquires with them last year, Yeah they said we would be passed to someone else if we went the DRO route, yeah went over bankruptcy but couldn't afford the upfront costs and didn't want our names in the local paper.

Don't have a SOA typed out so can't post at the moment.

Depth_Charge

falko89 wrote: »

I made enquires with them last year, Yeah they said we would be passed to someone else if we went the DRO route, yeah went over bankruptcy but couldn't afford the upfront costs and didn't want our names in the local paper.

Don't have a SOA typed out so can't post at the moment.

Hi

Thanks

Passed to someone else! - I wonder who that could be?

Yes, the B/R fees are quite steep now, there may be help from charities but these applications can take time and are not guaranteed, that of course is if bankruptcy is a suitable and appropriate option.

Have any of you served in the armed forces?

It would be very unlikely that your names would be in the local papers as that changed some time ago. There is the Insolvency Service Public Register though but both DROs & IVAs are also listed on there.

Could do with the info as requested in my previous post really to help you further.

Maybe speak with CCCS or Payplan again or try the CAB before deciding on or signing up to anything.