When to apply for DRO?

K.Jones_2

I may need to go for a DRO. I wish my debts were less than £15000, if I can get them down under that amount I could do it.

Bankruptcy seems to big a deal I wish I could do a DRO with more than 15K debt.

jj1410

Can anyone help?!


To cut a very long story short, my mother has temporarily moved in with us as she had no where else to go, she is now in the process of a DRO and I am wondering how this will affect me & my husbands rating as the DRO will use our address, my concern is, is that all debts she had/has have nothing what so ever to do with me or my husband and were taken out long before she had to move in with us, we have just tried to help her out by letting her stay here until she gets back on her feet again, so WHY should all paperwork for DRO state our address? Will myself and my husband be the ones that suffer in the end if we allow her to use our address? What do I do? Will it cause us any problems in the long run? Desperate & quick advice/help needed, Please. :-(

fatbelly

jj1410 wrote: »

Can anyone help?!


To cut a very long story short, my mother has temporarily moved in with us as she had no where else to go, she is now in the process of a DRO and I am wondering how this will affect me & my husbands rating as the DRO will use our address, my concern is, is that all debts she had/has have nothing what so ever to do with me or my husband and were taken out long before she had to move in with us, we have just tried to help her out by letting her stay here until she gets back on her feet again, so WHY should all paperwork for DRO state our address? Will myself and my husband be the ones that suffer in the end if we allow her to use our address? What do I do? Will it cause us any problems in the long run? Desperate & quick advice/help needed, Please. :-(

No effect on you at all, unless you have a joint financial product (like a loan or a joint account) with her.

longtermplanner

Will myself and my husband be the ones that suffer in the end if we allow her to use our address?

Just to add to fatbelly's comment, you may be worried that your address will be "black-listed", it won't. Credit scoring looks at an individual's history of credit and those of other people you are financially "associated" with by having joint financial products.

seanavfc92

K.Jones wrote: »

I may need to go for a DRO. I wish my debts were less than £15000, if I can get them down under that amount I could do it.

Bankruptcy seems to big a deal I wish I could do a DRO with more than 15K debt.

What is your level of debt? Do you have an available or surplus left over once your basic living costs have been paid for? If so, you could maybe look at an IVA (depending entirely on how long it would take to clear your debts in full)

wba31

K.Jones wrote: »

I may need to go for a DRO. I wish my debts were less than £15000, if I can get them down under that amount I could do it.

Bankruptcy seems to big a deal I wish I could do a DRO with more than 15K debt.

Other than the cost and process to get in place there is actually very little difference between bankruptcy and DRO.
In some ways I wish DRO's to be more like bankruptcy, such as;
Bankruptcy writes off debt immediately, DRO is at end of 12 months
Bankruptcy cannot be revoked
All debts included in bankruptcy irrelevant of what you declare, miss a debt off your DRO and it can't be added on

If you owe more than £15700 I would say bankruptcy may be a cheaper just as, if not more effective solution...

seanavfc92

wba31 wrote: »

Other than the cost and process to get in place there is actually very little difference between bankruptcy and DRO.
In some ways I wish DRO's to be more like bankruptcy, such as;
Bankruptcy writes off debt immediately, DRO is at end of 12 months
Bankruptcy cannot be revoked
All debts included in bankruptcy irrelevant of what you declare, miss a debt off your DRO and it can't be added on

If you owe more than £15700 I would say bankruptcy may be a cheaper just as, if not more effective solution...

It's just a shame that bankruptcy costs as much as it does. 6 payments of £15 for a DRO is far easier than £525 to the OR (if you can have the court fees waived)

wba31

seanavfc92 wrote: »

It's just a shame that bankruptcy costs as much as it does. 6 payments of £15 for a DRO is far easier than £525 to the OR (if you can have the court fees waived)

Indeed, unless assistance can be obtained from a trust fund...

Look at us, our names suggest we like opposing teams either side of One Stop, agreeing... Unheard of on these forums...

Deangelo

seanavfc92 wrote: »

It's just a shame that bankruptcy costs as much as it does. 6 payments of £15 for a DRO is far easier than £525 to the OR (if you can have the court fees waived)

Bankruptcy is a big deal, my DRO went smooth as anything.

I will be coming up on my one year soon,

does this mean I can apply for a loan? I dont want to break any rules.

DorisTrousers

For any newbies reading this thread, just to confirm that the DRO limit has gone up to £20,000 and there is no longer a 6 month time limit to pay for it.