Spending before DRO application

Zeen

Hi all, i'm new here and am seeking some advice please. First, being a newbie, i have posted a similar request, but evidently in the wrong section - apologies for any confusion.

Ok.... Having only recently learned of Dro's through a friend of mine, it would seem i fit the criteria for having the order granted. That said, i appreciate there will be in depth checks made into my past and current finacial history. My question: I recently opened up my third online catologe account (please resist the temptation to judge, i will openly aknowledge i have a spending problem, but the majority of my debt comes from just trying, as a single parent, to keep my head above water) which within the last two months i've racked up nearly £1000 in debt. This was before i learned of DRO'S. Is it likely the officer in charge of my case will asume this fraudulent and dismiss my case?

Sorry for rambling on a bit!

Any help appreciated. Thanks...

debt_doctor

Hi,

I have answered on your other thread - although Tigerfeet was quite right to direct you here.

DD

debt_doctor

......and here it is!

Hi,

There is no specific question within the DRO application that enquires about recent purchases.
However, a creditor can object to their debt being included within a DRO, and one of those objections could be " obtaining goods or services with no reasonable prospect of repayment".
So no objection = no problem but if it was highlighted then the DRO Unit would look at it and ask you the questions that you have already given answers to.
Perhaps a few months delay may make it safer for you?

DD

Zeen

Thankyou for your response, it's appreciated.

Can i also ask how is continued spending viewed? My credit cards are pretty much maxed out (i have two) i manage to make minimum payment each month (have never missed a payment) but always spend the available balance before the next statment is due. Would the DRO people class this as me making no real effort to clear my debts? Could a DRO be refused on those grounds?

Sorry if these questions have been answered here on the board before - i am slowly browsing through these threads but it's all a bit overwhelming to be honest.

debt_doctor

No, I doubt very much that will cause any issue at all. - Bye the way, I process DROs.

DD

Zeen

Thanks again for your help.

mildlyd

Hi,

I'm in a similar position. Through various juggling exercises, I've managed to not miss any repayments on my debts (a loan and 3 cc's), but am just getting in deeper by the month. Basically, in a couple of months time I'm pretty much doomed (unless I accept yet more credit), so I've booked an appointment with CAB for the end of this month to more than likely get the DRO ball rolling.

Whilst my credit rating is still healthy I've opened up a new bank account for when the time comes and wonder if I should also get a 'clean' credit card to try and start from scratch on improving my credit rating after the DRO? Or will this just look like a hugely cynical move on my part when the DRO is assessed?

I really have no idea about this, so any feedback would be gratefully received. Thanks.

[Deleted User]

^bad idea!

There is no point being naive about a DRO because it's impact can be destroying

Don't know what the debt charities are like but my intermediary went through my credit report with a fine toothcomb (not one of my creditors showing on that report would have escaped) and I also had to answer questions about existing credit, as expected

9 months later I wish the only thing I had to worry about was getting my report clean or trying to pull the wool over peoples eyes, hey I was lucky enough to understand and be called a bankrupt early on I guess : (

Yeah I was once a person meeting minimum payments whilst servicing payday loan repayments so pretty confident my credit acceptance days were over before even going down the DRO route

mildlyd

Thanks very much for the reply Deleted User, but I'm still pretty confused (my fault, I'm sure).

As a newbie, I'm a little reluctant to bore you to death with details of my own situation, but are you saying that getting a new credit card now, as a means of damage limitation for the future, is a no-no? I just thought that if it were not an actual debt it may not be be significant.

Apologies if that's a textbook error, but like I say, I'm very easily confused

National_Debtline

Hello there.

Don't know what the debt charities are like but my intermediary went through my credit report with a fine toothcomb (not one of my creditors showing on that report would have escaped) and I also had to answer questions about existing credit, as expected

That we do. A DRO intermediary has an obligatition to do so. All that said, I totally agree with everything Debt Doctor has said.

Best wishes,

David @ NDL.