DRO with more than 15K?

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. But 15 is the limit, but are their exceptions?

Can I just get relief on 15K and slowly pay off the rest? Or not include a few debts in the DRO?

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. But 15 is the limit, but are their exceptions?

Can I just get relief on 15K and slowly pay off the rest? Or not include a few debts in the DRO?

Unfortunately all debts must be included in the DRO, otherwise it is unfair on the included debts that they get cleared while other debts are paid up.
Bankruptcy is not too dissimilar to a DRO, it is more inclusive (miss a debt off your DRO and you pay it, bankruptcy clears all debts including any missed off forms), the only harder part of it is that it costs more, and you have to take your forms to the county court yourself, but the court process is only to check you are eligible for the bankruptcy and you are doing the right thing.

Have you had advice from a free advisor? book an appointment with your local CAB or call National Debtline or Step Change and get some advice. they will expain the ins and outs of things to you, and should provide you with ongoing support throughout the process. Once you are debt free I'm sure you will look back at this time and wonder why you never did it all earlier!

K.Jones_2

I have had advice, now I am trying to pay off all above 15K.

fatbelly

K.Jones wrote: »

I have had advice, now I am trying to pay off all above 15K.

Make sure you pay them off on a pro-rata basis. If you are sure that you know all the debts and they are only a bit over 15k this can be a good option. You only need to get it to £14999 if all the interest is frozen.

The position with a sub-£1000 car is clearer with a DRO, and there are less issues with a non-overdrawn bank account.

What was it that was putting you off bankruptcy?

You asked in your first post if there were excluded debts that did not contribute to the total (and that remain payable after the DRO). There are:

CSA arrears
Student loan
court fines
damages
social fund

wba31

how much is your debt over £15000? if it's more than £700 I think you'll be wasting an awful lot of money for a very similar option. Bankruptcy long term is more secure than a DRO, once it's done, it's done! If your circumstances improve during the moratorium period, the DRO can be revoked and you'll be back in the position again...