Confused IVA, DRO, Token payments?

RightLeftForward

Hi, it's my first post here, I've been looking around and hoping someone can share their knowledge with me and perhaps give some much needed advice.

Basically I was young, naive and frankly an idiot in my recent formative years.

As a result of this I now have myself a little muddle that I would like to clear up. In terms of urgency there is nothing drastic on the horizon, but I am looking for a solution promptly. (Somehow I have only ever been contacted by letter from one creditor in the past 2 years) However I have spoken to them all recently in order to gain account numbers in an effort to proceed with sorting this out. As I say none of the creditors have contacted me, hassled me etc but perhaps this is down to the frequency of me changing address in the past 3/4 years. However it was recently brought to my attention that I have a CCJ and as such need to get this sorted.

Anyway

8 Creditors which I owe a total of about £5000.00.

These are a mixture of things I just stopped paying in my ignorance (phone contract when it came to an end etc) Student overdraft, debts that are massive irritant (Natwest account I just stopped using when I changed providers must have not canceled a DD or something, but the fee's appear to have totted up to £600 +. (All defaulted at varying times in 2010 according to Equifax.

In addition to this I have a CCJ issued for £3500 approx. With this (issued in 2010) all the documents appear to have gone to an address I was not resident at as I only discovered it's existence a couple of months ago via other means.

Anyway i'm looking at £8500 of debt, which I need to do something about as you'd expect.

My income is currently very low - £1120 Net per month and i live in an expensive enough area - my rent alone is £450 a month in a houseshare for example.

Now i've spoken to:
Payplan - recommended an IVA
Stepchange - Recommended I make token payments of £1 and pay £45 to the CCJ (This method appears that it will take around 900 months to remedy)
Through looking on this board after a Google search I came across the idea of a DRO. Currently this appears to be my best option as, although I take responsibility for the debt and certainly have learned a life lesson, the idea of paying it back for years and years (more than 10) seems dismal in direct comparison to the DRO/IVA or even Bankruptcy was briefly suggested by Payplan as an option.

I appreciate the implications, I think at least, of these options. In terms of direct effect on my life, most things either of those options mentioned ie: ability to gain credit, employment checks etc are already royally screwed by the CCJ/defaults anyway.

If anyone has been in a similar situation and figured out a resolution that would like to share that would be greatly appreciated. Equally if anyone could spare a couple of minutes to share their experience in this field with me and suggest how to proceed that to would be a massive help.

Cheers

FiatFan_2

Hi, welcome along. I'm surprised payplan suggested an iva as I believed you needed a minimum of £14k debt to 3+ creditors to qualify.

From what little I've heard about DRO's, I believe it's similar to an iva but for debts less than £14k and for those's in rented accommodation.

Hopefully someone more informed will come along and give some better advice.

Good luck

RightLeftForward

Thanks for taking the time to reply, Fiat. Yeah from what I've read online it seems right up my street as I have literally zero assets and really don't like the idea of a DMP due to the length of time it would take to pay off.. Approximately 1 Million years, as mentioned.
Also the seeming lack of security/peace of mind that creditors aren't just going to be changing their mind about it and come knocking now they've had their memories of me refreshed with recent contact. The small amount of experience I have had dealing with them I don't think they could really be considered particularly amicable chaps. But again I appreciate i'm in the wrong here.

Annnyyywwwaaaaaayy a bit of further info

Primary concerns:

Stepchange I have only spoke to briefly but as I say the 'debt remedy' tool suggests token payments. I really would prefer not to be paying trivial amounts for potentialy eternity. Not because of the outlay, but the ramifications of having a dirty credit history have only really began to directly affect me, therefore I would like this to be resolved by means of IVA or DRO or something with a clear end.

Payplan - Suggested an IVA but as you say this seems to be for slightly higher debt. Equally they called, we did a 40 minute interview and arranged a call back on Wednesday as I did not have any account numbers (Not had any contact with creditors as I say) so phoned them all up. Payplan did not call at the scheduled time. I phoned them in the evening a girl said she would ensure the gentleman from the initial interview would call Thursday afternoon (No explanation as to why he hadn't initially) and again no call so i've kind of lost faith in entrusting them with my situation.

So, my point, if Payplan can't be arsed and Stepchange are suggesting token payments would it even be possible to arrange a DRO? I think from my extensive knowledge (i'm joking, I have no idea about this kind of thing) that seems to be the best route. Must be the name. Debt relief is exactly what I need.

Also on a side note Hypothetically if i did enter into a DRO and upped my income mid term would the order be revoked, amended?

Many apologies for the ramble, just writing my thought process aloud really so you can correct me if i'm thinking like a fool/making any obvious misjudgments etc.

Thanks again

debt_doctor

Hi,

Firstly, look to see if you qualify;

http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=37_debt_relief_orders

One of the criteria is that you have less than £50 disposable income after all reasonable costs have been met.

Do you want to pop up your SOA/ financial statement on here for us to have a look at?

DD

RightLeftForward

I do currently meet the criteria.

I don't want to post my entire outgoings up here but through doing the budget on the debt remedy and the girl appeared to not have any issues with the costs on there left me with £35 per month.

wba31

I would ring Step Change back and ask them if a DRO could be for you. With a telephone appointment an advisor will make sure you are spending sufficiently and sensibly, however debt remedy just takes your word for it.

FiatFan_2

The debt charities are their to give advice, but ultimately the decision is yours. I do believe the debt remedy tool is good for initial advice and gives SC your situation before speaking to an advisor.
If you qualify for and feel a dro is the best option then I'm sure they or any of the other debt charities could act as 'approved intermediary' for 12 months