Can anyone please help? Applying for a DRO

notoriousx

hi i am hoping to apply for a DRO but im waiting on a credit report to find out exactly what i owe but i estimate around £8000.
Before i do i have a few questions.
Because i have been paying 2 creditors and not the rest would this affect? I will apply these 2 creditors into my Dro as paying them is making me struggle.
If someone has pawned jewellery in my name and they are currently paying to get them out of the pawn would this be traced as my assets?
Last question, would creditors want some products back which still have outstanding balance as my ex partner ordered many luxury items and refusing to pay or return the items.
I was took for a ride my ex was money crazy and i was a fool leaving me with overdraft debt he spent, catologue debts and contract phone debts which is all stupidly in my name as i agreed being stupidly in love
My prioty bills have suffered through this.
I just want me and my children free from debt so we can start enjoying life and move foward.
Any advice will be appreciated, thankyou

notoriousx

ok sorry but if anyones has a similiar question to mine the answer :

Unlike other lenders, the pawnbroker does not report the defaulted loan on the customer's credit report, since the pawnbroker has physical possession of the item and may recoup the loan value through outright sale of the item.

Soo anyone help me with the fact ive been paying 2 creditors and not others? Would that stop me from getting a DRO as im falling behind on payments last few months totally stressed!! The catologue will be included in my DRO. And i will pay them a token payment as same as others once this is in progress.

meer53

For correct advice, contact https://www.stepchange.org

notoriousx

thankyou for your advise they have stated because i have favouratised creditors the dro could be invested or refused. I have chose to give it a shot with cccs once my credit report has arrived. They also stated that they look at how long it would take for me to pay of the debt myself and if its within a time frame they would refuse. Does anyone know more on this? If i paid £50 to my creditors a month it would take approx 9-10 years, is this something they would decline?

debt_doctor

What was the reason for the preference payments to the two creditors, and how much money are we talking about.

DD

fatbelly

I'm going to try to answer your questions without criticising StepChange. Here goes:

1. All debts must be included on your application. You cannot choose which to put in and which to omit. So those 'priority bills' might go in too.

2. Your credit report will not show you all your debts. Some creditors do not report: Councils, most utility providers, DWP, water authorities, local businesses. Some creditors report to one CRA but not another. Some debts may have dropped off... you get the picture.

3. Assets is a difficult area. It would include a collection of antique jewellery for instance but no-one is going to bother about a few bits and bobs.

4. Technically paying 2 creditors but not others in the 2 years before a DRO is a 'preference'. It doesn't sound like you have been paying much, and you haven't been doing it to deliberately put them in a better position. So, now that you know you are heading for a DRO, stop paying them. You can say that, in the run-up to your DRO, you treated everyone the same. Even so you should declare it on the application.

5. Your creditors cannot ask for the items back. But if they know that you have non-exempt items with a high resale value, they could challenge your declaration of less than £300 assets.

Having said all that, you should know that the vast majority of applications are accepted without problem, and if StepChange are funny about doing one, try one of the other agencies.

notoriousx

Thankyou so much for your replies, i paid 2 creditors as someone else was making the payments for these accounts as they ordered things from these catologue, although they are no longer paying leaving me struggling with payments i cant afford now so i wont be able to afford them no more anyway. The payments between both creditors were approx £200 a month but i was not paying this someone else was although it came out my bank account as the catologues were in my name to my account.
As for credit reports i can always ring and check balances i am in debt with gas and electricity but have been advised because i am still with this company i possibly couldnt include them, i have thankfully made arrangements with my supply to install prepay meters with a reasonable amount to pay each week (£10) towards the debt so i will include this is in my outgoings.
I really hope i qualify i NEVER want credit again i am too kind to help others in need and stupidly run debts in my name in the sake of others.
I understand there could be a problem with ordered assets from a creditor which i cannot retrieve as i cannot get in touch with my ex atall
Would the DRO just get refused rather than processed resulting in a penalty?
As i am aware my only other option would be a DMP if fails.
Thankyou for your support

debt_doctor

notoriousx wrote: »

Thankyou so much for your replies, i paid 2 creditors as someone else was making the payments for these accounts as they ordered things from these catologue, although they are no longer paying leaving me struggling with payments i cant afford now so i wont be able to afford them no more anyway. The payments between both creditors were approx £200 a month but i was not paying this someone else was although it came out my bank account as the catologues were in my name to my account.
As for credit reports i can always ring and check balances i am in debt with gas and electricity but have been advised because i am still with this company i possibly couldnt include them, i have thankfully made arrangements with my supply to install prepay meters with a reasonable amount to pay each week (£10) towards the debt so i will include this is in my outgoings.
I really hope i qualify i NEVER want credit again i am too kind to help others in need and stupidly run debts in my name in the sake of others.
I understand there could be a problem with ordered assets from a creditor which i cannot retrieve as i cannot get in touch with my ex atall
Would the DRO just get refused rather than processed resulting in a penalty?
As i am aware my only other option would be a DMP if fails.
Thankyou for your support

So then, those who ordered goods from your catalogue (you were the agent) paid you for goods that you passed on to the catalogue company? - To me that's not a preference at all - only the DRO applicant can create the preference, not someone else, and either way it was not done to improve the creditors position should you become insolvent - it wouldn't feature in a DRO that I would put forward.

DD

fatbelly

I agree with DD - I wouldn't mention a preference if a third party was making the payments - they can do what they want with their money and you have no control over that - so not a preference.

I would however put in the arrears of elec/gas that are being loaded on to your meters. Those should then be written off so that you are only paying for your ongoing usage.

notoriousx

Thanks for your advice i will put my gas/elec arrears into the plan and as for the catologue, i wasnt an agent it was a personal account but third parties ordered goods and paid the debt. I thought it would seem as preference seeing as the orders and payments were on my account in my name?
Sorry for the confusion i appreciate your help alot

wba31

fatbelly wrote: »

I agree with DD - I wouldn't mention a preference if a third party was making the payments - they can do what they want with their money and you have no control over that - so not a preference.

I would however put in the arrears of elec/gas that are being loaded on to your meters. Those should then be written off so that you are only paying for your ongoing usage.

If you make it clear to Step Change that the payments were not yours they will understand. They have a DRO team that are fully qualified advisors but they spend most time doing DRO's, so they know more about them... So make sure it's the DRO team that know, and its not just a standard advisor who hasn't asked you the right questions (when? How much? Why? Oh it wasn't you who paid...) you get my drift..?