Advice about Debt Relief Order please

Delara

Hi this is my first post here. Someone said ask on moneysavingexpert.

So here goes.

I have been advised by a debt charity to apply for a Debt Relief Order. My debts are just above £15000 so I know some of them will not be included. But if £15000 of debt is relieved it would be so fantastic.

I have a few doubts if I qualify. My daughter has some funds given to her by her Grandparents. Its a few thousand now and they keep putting more every birthday and xmas. Its a child saver account in the childs name that is linked to one of my accounts that I want to include in the debt relief order. So will my daughter lose all these funds, or does it mean I can not even qualify for a DRO? She also has a child trust fund with £500 from the government before they stopped it. I was thinking about transferring all her balance to that one. But is it right you have to wait a year then before going for a DRO? They look back a year to see if you hidden any money or anything?

I also have doubts about my car. I told the debt charity it is probably only worth £1000, but the book price is a little more. It is a 2006 Focus but it has done over 100K miles on the clock. So maybe its debatable if its worth more that a grand.

datlex

How is your granddaughter's account linked to yours if it is a child saver's account?

Delara

datlex wrote: »

How is your granddaughter's account linked to yours if it is a child saver's account?

No she is my daughter. My parents and my ex husbands parents have been putting money in to her account over the years.

It is a childs saver account that is linked to my current account. I have an overdraft in my account, but her child's saver account is separate is it not? It her money for when she is older.

Pee

I would expect our daughters account not to be part of the DRO, but you need to check.

What debts would you be left with after the DRO? Would they be manageable? (You don't need to answer that.)

If there are any individuals i.e. a landlord getting debts written off in the DRO expect them to be very annoyed and make every effort to have the DRO overturned. If your car is worth more than £1,000, this would be sufficient to have it overturned. Plus your car is quite high mileage so would possibly appear as more valuable than it actually is. You should check the valuation carefully before deciding to proceed. (If they are all companies, I doubt they will bother.)

You need the charity to give you some more advice on this.

Delara

I can only transfer a certain amount to her child trust fund tax free every year. But even then, is it the same as if its in her child saver account.

Well her CTF can not be withdrawn before she is 18, but this childs savings account could be.

I wish I transferred half of it before April, now only a bit will be tax free, and some will not be.

So If I transfer my her balance to her CTF now, will I have to wait a year before applying for a DRO? By then my car will no doubt be worth less than £1000.

Its just coping with all the creditors calling for another year. Am I right even if they do enforce a CCJ I can still go for a DRO AFTER the CCJ has been enforced?

Delara

Pee wrote: »

I would expect our daughters account not to be part of the DRO, but you need to check.

What debts would you be left with after the DRO? Would they be manageable? (You don't need to answer that.)

If there are any individuals i.e. a landlord getting debts written off in the DRO expect them to be very annoyed and make every effort to have the DRO overturned. If your car is worth more than £1,000, this would be sufficient to have it overturned. Plus your car is quite high mileage so would possibly appear as more valuable than it actually is. You should check the valuation carefully before deciding to proceed. (If they are all companies, I doubt they will bother.)

You need the charity to give you some more advice on this.

You say you need to check, Well yes thats what I want to do. How on Earth do I check? I am hoping someone on here will tell me.

debt_doctor

Delara wrote: »

Hi this is my first post here. Someone said ask on moneysavingexpert.

So here goes.

I have been advised by a debt charity to apply for a Debt Relief Order. My debts are just above £15000 so I know some of them will not be included. But if £15000 of debt is relieved it would be so fantastic.You generally cannot choose what to 'leave out' of a DRO. The exception (with certain qualifiers) are HP agreements and on going contracts that are not in arrears. You can pay off all of your debts pro rata to bring the debt level below the 15k limit.

I have a few doubts if I qualify. My daughter has some funds given to her by her Grandparents. Its a few thousand now and they keep putting more every birthday and xmas. Its a child saver account in the childs name that is linked to one of my accounts that I want to include in the debt relief order. So will my daughter lose all these funds, or does it mean I can not even qualify for a DRO? She also has a child trust fund with £500 from the government before they stopped it. I was thinking about transferring all her balance to that one. But is it right you have to wait a year then before going for a DRO? They look back a year to see if you hidden any money or anything? Our bureau has checked this out with the DRO unit a couple of times, and they claim no interest in such monies - however, your intermediary would need to confirm that in your individual case. Transferring funds is never a good idea.

I also have doubts about my car. I told the debt charity it is probably only worth £1000, but the book price is a little more. It is a 2006 Focus but it has done over 100K miles on the clock. So maybe its debatable if its worth more that a grand. Pay the (I think £4?) price on Parkers for a valuation based upon actual mileage, or get an endorsed valuation from a dealer on letter headed paper. However, if it ends up that the car is worth more than £1000 and you own it, you would not be eligible for a DRO at this time.

Hi,
Hope that helps a bit.

DD

Delara

debt_doctor wrote: »

Transferring funds is never a good idea.

DD

What if its over a year ago? I thought they only look back 1 year?

But yes thank you, very helpful? I think I need to wait another year before going for the DRO. Then my car will be worth less than £1000 no doubt about it in another years time. I am really trying to get my total debts under the £15K.

Does it make any difference if I have a few CCJ soon? I can still apply for a DRO and include them?

I just have to put up with lots of calls from debt collectors.

debt_doctor

Delara wrote: »

Its just coping with all the creditors calling for another year. Am I right even if they do enforce a CCJ I can still go for a DRO AFTER the CCJ has been enforced?

Yes, a DRO has the same effect on a debt under a CCJ than any other debt; that the creditor cannot take any action to enforce and that the debt will be written off at the end of the 1 year moratorium period.

Stop talking to your creditors on the phone, you are playing their favourite game. Put an answer machine on, change the sim card, do whatever you want, but creditors only ring you to bully you in to paying money you can't afford.
If not already done so send 1 SOA showing you can't afford to pay, as your income only covers your reasonable (not basic) costs. Talk to your intermediary before sending any SOA.

DD

Delara

debt_doctor wrote: »

Yes, a DRO has the same effect on a debt under a CCJ than any other debt; that the creditor cannot take any action to enforce and that the debt will be written off at the end of the 1 year moratorium period.

Stop talking to your creditors on the phone, you are playing their favourite game. Put an answer machine on, change the sim card, do whatever you want, but creditors only ring you to bully you in to paying money you can't afford.
If not already done so send 1 SOA showing you can't afford to pay, as your income only covers your reasonable (not basic) costs. Talk to your intermediary before sending any SOA.

DD

You are very helpful, I cant thank you enough. I am so pleased I came on this site Big hugs all round.

Pee

Noone can advise you on your individual case without seeing all of the documentation about your daughter's account. It isn't a good idea to put that on here. The charity that suggested the DRO? CAB? An insolvency practitioner?

It may be a matter of contacting the insolvency service to check.