Complete Guide to Getting a DRO (Start to Finish) :)

Jharkinton

Hopefully a Moderator can make this sticky or at least with the comments it should remain quite high for fellow MSE users in the same boat to read.

Upon using this site my credit knowledge has spiked and I feel for the first time in my life, I understand how credit works to your advantage and know first-hand how it can destroy you.
This guide is for people that are considering or have undergone a Debt Relief Order.

The DRO has helped me no end and I can recommend anyone in the same boat to apply for one. It has eased my mind, health and allowed me to focus on the important factors in life… My Family!

I’m not going to list the terms of a Debt Relief Order as the advise on this site will tell you most aspects surrounding the terms and conditions of this order. Just know that your disposable income (spare income) shouldn’t exceed £50 a month after bills.

For more info please visit
http://www.adviceguide.org.uk/wales/debt_w/debt_help_with_debt_e/debt_relief_orders.htm

Hopefully the layout is easy to understand and under each step I’ve put ‘E.T’ Estimated Time to complete the step. This can change depending on CAB and individual personal circumstances and service availability. This is only a rough guide from what it took me to complete. Some might be quicker, others considerably longer.

Pre Debt Relief Order

Step 1
(E.T - a moment of your time)

Calm down and control your heart beat. Health is the most important factor here. Staying mentally sound and not feeling like you on a bridge looking down. Help is around the corner but in order to get it you need to say to yourself ‘enough is enough.’ I put a little reminder on the fridge to remind me each day.

Step 2
(E.T - 1/2 Weeks)

Ring your local Citizens Advice Office and book an appointment to see a Debt Relief Order Insolvency practitioner.

You can find your looking CAB advisor on http://www.citizensadvice.org.uk/

Although there is always a waiting list to see an advisor it is worth the wait. I would always recommend CAB over the others such as Step Change, National Debt Line and Payplan because you can sit down and discuss anything that concerns you. Over the phone you forget to ask important questions and normally CAB can tell you advise as they go along and will trigger you to ask additional ones. Over the phones you tend to just listen and not ask questions.

Step 3

Time to order your credit reference files from the major CRA’s so you can look and find out whats what. This part is so important as citizens advice will need to see these debts owed to authorise the DRO.

Myself I didn’t want to order or see the totals. Knowing would be conceding that I had a problem. For so many years I stuck my head in the ground but finding out and adding the figures up made me see sense and swear a lot.

*Seeing your credit files will allow you to cross examine the data creditors have on you, thus, allowing you to correctly see how much you owe.

If when you add all the totals up and exceed £15,000 you won’t be eligible for a DRO but Citizens Advice would still be able to help, so wait for your meeting.

The three credit reference agencies that you should order your £2 statutory credit report from are

Equifax
http://www.equifax.co.uk/Products/credit/statutory-report.html

Experian
http://www.experian.co.uk/consumer/statutory-report.html

CallCredit
https://www.callcredit.co.uk/stat-report-online/

Although Equifax and Experian are the biggies, it’s worth seeing what data CallCredit has from registered Debt Collection Companies that don’t want to pay the fees for major companies. Plus it only costs £6 and takes 7 to 12 days to come through the post. (Same with them all) By this time they should be here in time for the CAB meeting were the advisor will go through your finances with a fine tooth comb. (Don’t be scared, they’re unbiased and won’t think bad of you)

Once your credit reference files arrive take them to the CAB meeting and let them look through it. They will add all your debts up and find a total. It’s worth added them up before hand and see if your totals match. Either party could forgot to add something which will only come back to bite you later on.

Step 4
(E.T – 3 – 6 Weeks)

Attend your CAB meeting and fingers crossed the Debt Relief Order Insolvency practitioner says your eligible and that he advises you to start the process to becoming Debt Free

In my experience this was the longest period I had to undergo other than the Debt Relief Order Period itself. It is essential to remember all debts as the application process that the CAB adviser has to under-go is extremely lengthy. The online application system once finalized can’t be edited and if you do find another debt owed the application has to be deleted and everything re-entered.
Once you have sat down, read though and listened to everything to CAB adviser has told you. They will print the DRO application off and get you to sign the terms and conditions as well as them counter signing as it is just as much their fault for incorrect information as yours.

The top copy of the form will have a bar code that will require you to take it to a post office and pay the court processing fee over the counter. Currently the fee is £90 which from what I hear you can pay in six instalments should you need to. I paid for mine in full to get the ball rolling as soon as I could.

Until the Plymouth DRO Unit receives payment nothing will happen nor be processed. Lenders can still hassle you for monies owed during this time as well as bailiffs attending the property. The quicker you pay the quicker your debt free

They make you feeling really bad when you send the application off to have it be granted. On the forms in states should you be successful your application will be processed. DON’T FEEL BAD!!
The CAB advisor would not have under gone all that time, paperwork and application process if you weren’t entitled to it. Trust me on this.

During your Debt Relief Order

Step 6
(E.T – 1 year from the date you were accepted and your DRO was activated.)

Well congratulations are in order!! Well Done Your officially free from phone calls, letters, emails and door collections as longer as you listed all of them in your DRO originally before paying over the counter at the post office.

Apart from getting a copy of the DRO and conditions back from the DRO unit in Plymouth they would have sent each of the creditors a letter telling them you are now subject to a DRO and that no contact can be made unless the terms of your order cease.

Hopefully this will ease your mind and already be feeling the weight of your shoulders has been lifted.

You deserve to feel great and think of it as the hard work and sleepless nights are over.

As long as you keep your head down for one whole year you won’t have any problems with your DRO being taken away. Unless you have committed an element of fraud or information doesn’t match thorough out the year when the DRO unit do their checks. The only thing that will really affect your DRO is not declaring an increase in wages or benefits that tip you over the £50 threshold.

The conditions do state you can have up to £500 worth of credit but seriously… If your thinking of getting credit after under-going all this I believe you haven’t learnt your lesson well enough.

Credit File Update
Once the order has been granted your credit file will show a Bankruptcy Order for £0 and give you the day it was actioned. Your mandatory period will end one year from the date it was originally listed.

My experience would suggest you keep your head down and stay away from applying for credit. The next step is where you can start to rebuild your life It is important to tell the Official Receivers of any changes to your circumstances. Keeping them informed should you move house, get a new job, change contact numbers or even set up a new email address should they wish to contact you. I’d say still inform them even if you scratch your butt then you can’t go wrong FULL STOP!!!

Completion of your Debt Relief Order

Step 7
(A life time of financial planning and restraint is needed)

Well this is the part that feels brilliant!! Your OFFICIALLY and LEGALLY DEBT FREE

WOOOOOOOOHOOOOOOOOO!!!

This step I will go as deep as I can into as no one really knows 100% what to do and everyone struggles with. The amount of hours and phone calls I’ve made to get the answers was unreal. Although this is my story others may wish to approach it differently, but this worked for me and I’m extremely happy with the outcome that has occurred. Every month is an improvement and I have personally sworn that I will always remember rule number 1:

Pay my bills and agreements on time by at least the minimum payment every month. More if I can afford it!

If you can do that! Your credit will only improve. Understand it will take time and hard work to sort it to a position where you can get the deals you want.

Part 1
Your Debt Relief Order will automatically end on the same day one year later from when you had it granted (Say 10/03/2012). Your credit file will change the entry to satisfied on date (10/03/2013) by itself.

*Note to remember the DRO Unit in Plymouth or the court will not send you ANYTHING reference to completing the terms and conditions and will remain silent. Everyone says under bankruptcy you should get a ‘letter of discharge.’

With a DRO you don’t get any discharge letter or any correspondence saying your debts are discharged sent to you automatically. Instead you can request a letter copy by ringing them directly, sending a letter or emailing them asking them to confirm your have completed your mandatory period and that you are discharged from all qualifying debts listed within the DRO.
I’m almost certain Plymouth is the main DRO Unit but just to confirm your DRO status you can use the link to see the insolvency register entry on you.

http://www.insolvencydirect.bis.gov.uk/eiir/
When you type your details in it should show your name and if you click on that details about the order. At the bottom under Insolvency Service Contact Details header you can see the details for your registered office. This is the office you contact to get the letter. The letter comes in handy to send off to creditors to get the information changed on your credit file and show satisfied under the entries that the credit reference agencies hold.

Plymouth Details (You will need your DRO number in order to speak to them over the phone. Starts with DRO???????)

Contact Enquiry Desk
Address 1st Floor
Cobourg House
Mayflower Street
PLYMOUTH
United Kingdom
Post Code PL1 1DJ
(The Insolvency Service is not responsible for the content of external sites.)
Telephone 01752 635 200

Part 2
Correcting the entries on your credit file to start repairing what little credit file you have after going through a mild bankruptcy.
Your best bet is the sign up for a free credit report service such as Experian or Equifax. I’d recommend either of these as when a creditor fixes information on one credit reference agency they inform all at the same time.

Experian is expensive (£14.99 p/month) but extremely good and Equifax is a cheaper (£8 odd) but I find doesn’t contain all of my credit accounts. Otherwise you can re-order your statutory reports again @ £2 each and write a letter or email the creditors requesting them to make amendments as you are no longer bankrupt and need the accounts settled as of YOUR DATE THE DRO ENDED. Very important!! Otherwise you will have to wait 6 years to get it off your report from the date they sorted it. Otherwise it could be months after your DRO ended that its updated.

So how do I find out where to send my letters and what do I even say?

Well this next part I can take zero credit for it as fermi has already made a fantastic guide. This guide really helped me out and I thank you personally for taking the time to upload the thread. Wouldn’t be in the situation I am in now without your help.

Please Visit
https://forums.moneysavingexpert.com/discussion/677875

Follow the instructions recommended and you can’t go wrong. I would use the letter template, fill in the dates and print a copies off to send.

When I sent each letter off to the creditor I submitted the following documents with as supporting information.

-Downloaded letter from link and edited it to suit them creditors
-Put a copy of the discharge letter you received from the DRO Unit when you ring up and order one

-A copy of the debt in question form the DRO creditors owed pages of your initial application. Highlighted with a pen to show easily.
Once you have printed them off find the addresses from fermi’s thread and send second class recorded.

Follow the guides to the key!!!

Hope this has helped clear up some important facts and highlighted some key area. Thanks for reading. Any questions or anything that needs altering let me know