DRO advice needed.

moneysavingexpert52

I have a secret debt of £9000, all I have to show for it is my car which is worth £3000, obviously if I sell it, it means my family that I live with, and my other half will know something is wrong. I have lost my job and cannot pay my credit cards. I have to file for a DRO, I'm just wondering if there is a way around selling my car? And also what would happen if you declared your car was of a lower vallue? Not that I would do this.

Thanks.

bellevie

They take your car registration, and I believe they go by parkers price guide.

Is it worth talking things through to your family/partner? They may be able to help you, or support you through the process.
Dont forget this will stay on your file for 6 years, so if your partner suggests moving out to rental or to buy a home in a few years time, you will probably fail credit checks until it falls off your file.. Its a big secret to keep, especially for such a long time.

edit - just seen your other post. If you are looking for work and prepared to take whatever you can get you might not even need to go down this route. Could you downgrade your car, tell them you want something smaller/larger/cheaper to run whatever makes more sense, then with the money made use that to continue minimum payments to keep you ticking over until you find a new job? Will you be getting any redundancy money to keep you ticking over? Could you temp until you find something permanent?

good luck

wba31

moneysavingexpert52 wrote: »

I have a secret debt of £9000, all I have to show for it is my car which is worth £3000, obviously if I sell it, it means my family that I live with, and my other half will know something is wrong. I have lost my job and cannot pay my credit cards. I have to file for a DRO, I'm just wondering if there is a way around selling my car? And also what would happen if you declared your car was of a lower vallue? Not that I would do this.

Thanks.

the key thing here is the value of the car. Check on Parkers for what the actual value of the car is firstly, it never fails to amaze me how out people can be with valuing their cars...

If your car is worth more than £1000 on Parkers the DRO would not be approved, its black and white like that.
The only thing you could do to get a DRO is to sell the car for it's full value, you can buy a replacement vehicle for less than £1000, an the money that is left from selling your car should be used to reduce your debt with pro-rata offers.

Could you look at a repayment plan? something temporary until you can find another job? you should speak to an advisor from Step Change, CAB or National Debtline...

National_Debtline

Hello there, in addition to what wba31 has mentioned, if you we're to return to work - a DRO could end up being revoked if your disposable income increases to more than £50 per month whilst the DRO is in operation (i.e. for the year that it runs for).

Best wishes,

David @ NDL.

moneysavingexpert52

I am actively looking for work, but won't find a job which pays as well as my previous. And even then I was struggling with the repayments.

So if I find a job which pays more than £50 a month then I won't be able to have the DRO?!

As much as I hate the outcome, thank you for your advice on the car situation.

As far as the family and partner, they're not very understanding, it will just cause hurt and upset.

Just checked my credit rating on Noddle, it's 1/5. So I probably won'tbeable torent anyway?

Would/COULD my credit rating get any lower if I get a DRO?

Cheers.

debt_doctor

It's not a job that pays more than £50 pm, it is that you cannot have a surplus of more than £50pm after all of your reasonable costs have been met. Often if on a lowish wage or are responsible for a partner and / or children then those in full time work can often fit the criteria.

Whilst a DRO does certainly cause detriment to your credit rating, in my view, if someone has multiple defaults already, it does not make the situation much worse, if at all.

DD