A few Questions about DRO?

Gordie1975

Thank you all to this site for the help i have received in the past, you really are all stars!!!

Anyway, i am in a bit of a state financially, credit cards, loann, overdrafts, and i think a DRO may be my best solution to get me back on my feet financially.

I have a few questions that i am unsure off, and if anyone could help me with them, i would be grateful.

I have around 13.5k of unsecured debt on Credit cards, loans and overdrafts, i am employed and own no properties of savings.

I reckon i have about £50 left after rent, gas, car insurance and stuff like that, not including the debt i am struggling with.

My car is an old 98 ford that is on its last legs, but is on the insurance as being worth £1065, but i doubt id get £100 for it in reality.

1) how is the car valued?, will they use the insurers computer generated estimate, or can i produce an independant estimate to prove its real worth?

2) When calculating how much disposable income i have left over, do i count in the debt i am getting a relief order in relation to?, i suspect not, but thought id check.

3) Is there any sort of guide to what is acceptable to put down as a household expense and how much is acceptable for each.
i know that probably seems obvious to most, but really, i put down shopping etc, but then i seen someone put down hair cuts somewhere else and realised i hadnt included stuff, probably loads like clothes and shoes and car maintanence.

4) Also, i work in a shop, would a DRO affect me in any way with work, i mean would they contact work about wages or anything?


5) I am a new tennant in my current home, but i have had no problem paying the landlord, would he be informed of a DRO or would i need to inform him or anything?


6) i have a loan over 5 years, i am just over 1 year into it, if i paid every payment for 5 years the loan cost would be over 9k, right now on my online banking, and on equifax the loan balance is just under 5k, would that debt be 5k or 9k?
I would say 5k because it the interest builds over time?
thank you for any help you could give.

wba31

1) how is the car valued?, will they use the insurers computer generated estimate, or can i produce an independant estimate to prove its real worth? Your intermediary (Debt advisor that completed the DRO) will check on Parkers, which is what the Insolvency service check. If the car is older than 10 years old it will not appear on Parkers so the client's valuation is taken. Anyone who knows cars wouldnt argue with your valuation on a 15 yr old Ford.

2) When calculating how much disposable income i have left over, do i count in the debt i am getting a relief order in relation to?, i suspect not, but thought id check. Your disposable income is based on income and expenditure without debt.

3) Is there any sort of guide to what is acceptable to put down as a household expense and how much is acceptable for each.
i know that probably seems obvious to most, but really, i put down shopping etc, but then i seen someone put down hair cuts somewhere else and realised i hadnt included stuff, probably loads like clothes and shoes and car maintanence. There are guidelines, but advisors shouldnt really share them with you, just make sure you are not under the minimum or over the maximum without justification. Whoever you get debt advice from should ensure your budget is within the guidelines, but sustainable and realistic for you

4) Also, i work in a shop, would a DRO affect me in any way with work, i mean would they contact work about wages or anything? Unless anything is in your contract, there should be no issue with employment. The Insolvency Service will not contact your employer, you will need to provide proof of income to your intermediary prior to you DRO being prepared, but this is wage slips or bank statements.


5) I am a new tennant in my current home, but i have had no problem paying the landlord, would he be informed of a DRO or would i need to inform him or anything? The landlord will not be informed of the DRO, and if you have no arrears with him he will not be told of the DRO


6) i have a loan over 5 years, i am just over 1 year into it, if i paid every payment for 5 years the loan cost would be over 9k, right now on my online banking, and on equifax the loan balance is just under 5k, would that debt be 5k or 9k?
I would say 5k because it the interest builds over time?
thank you for any help you could give. In my experience most loans have the interest "front loaded," so you borrow £5000, they calculate your interest, this all gets added on to what you owe. The best thing to do is to call the loan provider, and ask them what in total you owe, not for early settlement, but full balance.

I hope this answers your questions fully?
Where are you looking to go to get help with the DRO? CAB will help you face to face, Step Change Debt Charity and National Debtline will help you over the phone

Gordie1975

wba31 wrote: »

1) how is the car valued?, will they use the insurers computer generated estimate, or can i produce an independant estimate to prove its real worth? Your intermediary (Debt advisor that completed the DRO) will check on Parkers, which is what the Insolvency service check. If the car is older than 10 years old it will not appear on Parkers so the client's valuation is taken. Anyone who knows cars wouldnt argue with your valuati
on on a 15 yr old Ford.

2) When calculating how much disposable income i have left over, do i count in the debt i am getting a relief order in relation to?, i suspect not, but thought id check. Your disposable income is based on income and expenditure without debt.

3) Is there any sort of guide to what is acceptable to put down as a household expense and how much is acceptable for each.
i know that probably seems obvious to most, but really, i put down shopping etc, but then i seen someone put down hair cuts somewhere else and realised i hadnt included stuff, probably loads like clothes and shoes and car maintanence. There are guidelines, but advisors shouldnt really share them with you, just make sure you are not under the minimum or over the maximum without justification. Whoever you get debt advice from should ensure your budget is within the guidelines, but sustainable and realistic for you

4) Also, i work in a shop, would a DRO affect me in any way with work, i mean would they contact work about wages or anything? Unless anything is in your contract, there should be no issue with employment. The Insolvency Service will not contact your employer, you will need to provide proof of income to your intermediary prior to you DRO being prepared, but this is wage slips or bank statements.


5) I am a new tennant in my current home, but i have had no problem paying the landlord, would he be informed of a DRO or would i need to inform him or anything? The landlord will not be informed of the DRO, and if you have no arrears with him he will not be told of the DRO


6) i have a loan over 5 years, i am just over 1 year into it, if i paid every payment for 5 years the loan cost would be over 9k, right now on my online banking, and on equifax the loan balance is just under 5k, would that debt be 5k or 9k?
I would say 5k because it the interest builds over time?
thank you for any help you could give. In my experience most loans have the interest "front loaded," so you borrow £5000, they calculate your interest, this all gets added on to what you owe. The best thing to do is to call the loan provider, and ask them what in total you owe, not for early settlement, but full balance.

I hope this answers your questions fully?
Where are you looking to go to get help with the DRO? CAB will help you face to face, Step Change Debt Charity and National Debtline will help you over the phone

thank you for your time replying, im on phone at work so sorry for any typos.

yes, i havent decided which service to use yet, i just wanted to make sure i qualified brfore was
ting a charities time.

which of the two is the brst option in your opinion?

it looks like it hangs on wether the loan is 5k or 9k as 5k makes all my debt 13.5k 9k makes it 17.5k.

do i need to include all debt?
so if i have one credit card for 2.5k, can i simply not include it in the dro thetefore kerping me under the 15k?

anyway, thank you, bettet get onto bank on my break.

Gordie1975

just been to bank, confused now, they told me my ballance is 5k and settlement fig is 5.2k, buy she says the 9k is only if i stick to my payment agreement in my credit agreement.
so im still none the wiser

wba31

As for who is the best out of the advisors, none of them! they are all great at providing a good service, what i would say for you is use the one that is most convenient. Your local CAB may need to have appointments with you during the working week? is this suitable if you are at work?
Step Change are open until 6pm in the evenings and at weekends, I believe NDL are open util 8/9pm?
Im not sure what your local CAB lead time is for a DRO, Step Change are pretty quick (according to people i know who work there), I am unsure on NDL.

I would get advise from a charity irrelevant of DRO or not, there will be other options available to you if the DRO is not an option. All debts must be included, so nothing can be left out. If you cancel payments to the loan (ensure you no longer bank with them) they will soon let you know the full debt level

Gordie1975

Thank you for answering my questions.

In all honesty my situation is a little more complicated than i stated earlier, as i was concentrating on the DRO stuff rather than my circumstances, as i thought that was more relevant, so some things are different.

Heres my situation....

i am living rent free at a friends house, and paying them some board every month, and i mostly eat out.

that scenario is coming to an end in the next month or two, i have been living in rooms and stuff for a good while, once this ends i will be applying to rent an appartment in town, it will be a one year contract and will require a credit check.

When i do that i wont have enough money to pay my debts, but i need a decent credit rating to pass a credit check, so i cant not pay my bills until i am in the new place.

That is why i wanted to investigate it all now, before ,moving in, so i know how much i owe and can plan either a DRO or some other way of managing my debt.

I have a spare bank account with a company i have no debt with, that i im going to move my wages over to, then get my bills put onto direct debit on that account, so i can easily cancel all the bills being paid when the time comes.

But obviously, it is all gonna hang on wether this loan is 5k or 9k, as if it is 9k i will be over the threshold.

I thought with eqifax saying in was 5k, that would be right...i dunno

Not sure how i can find out how much i owe for the Lloyds loan without non payment, surely they should be able to tell me easily?


Anyway, this probably should be in another part of the forum now, as its much more general, sorry.