DRO advice please

SomebodyToldMe

Dear all,
I have debts of around £16-17k, and struggling to pay back- I'm haven't work for over 2 years now due to health problems and wife works 20hrs per week on basic wage.
Currently have agreed to pay creditors £1 per week....but they are continuing to add missed payments, charges etc which keeps making it difficult to get free of them
If I borrowed money from family/friends- the 1-2k- to get me under the DRO limit of £15k...does this money have to be equally split and repaid to each creditor before I apply for a DRO?
Can I still try and apply for a DRO if I have made an informal agreement with them?
Really want to be debt free in a year....heard of horror stories of DMPs, and just over £15k to low for full BR?
Any thoughts/help welcome- thanks

mattannar

You have debts of over £15k, you are insolvent. Why borrow the money which you probably be never able to repay. Contact one the debt agencies and get their advice.
I know what I would do, but the choice is yours.

IF

Hi SomebodyToldMe and welcome to the Bankruptcy (BR) Board. Please do as mattannar has said. First step is to make a list of all your creditors, debts and assets. Secondly and most important is contact one of the following debt charities. Please try these they don't charge and are impartial. They will go through all your options with you and if they suggest bankruptcy then come back to this board and we will help you all we can. Also if you're not ‘clicking’ with one of the Debt charities do try another. We advise you to try at least two others for your own piece of mind.
Your BR could be refused if you have not sought advice.
Advice on here does not count, this has to be from one of the Debt Charities, an IP, an Accountant or a Solicitor. The Judge just wants to be sure that you can never come back and try and overturn the order on the basis that you were not aware of all the consequences.

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• National Debtline - Website: National Debtline Telephone: 0808 808 4000
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• StepChange (formerly CCCS) - Website: StepChange Telephone: 0800 138 1111

Others:

• Debt Advice Foundation
  
• Christians Against Poverty
• Business Debtline
  
• PayPlan
• TaxAid - Help with tax debts.
• Debt Support Trust
  

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Best wishes
IF

debt_doctor

Hi,

Why wouldn't you go BR for £17k?

Before DROs I used to see people go BR for 6k, 7k,8k...........

Is there anything about BR that affects you more adversely than a DRO?

DD

SomebodyToldMe

Dear all
Thanks for your kind replies everyone
I have sought advice on my debt from the debt adviser at my local housing trust- can this count as seeking help to a Judge?
I prefer DRO over a BR as it's cheaper to apply for, its possible to clear the debt in a year (DMP could be 5 yrs or so of pain) as well no court appearance- as I understand it...
We have no savings, own 8 yr old car, in a council house and on benefits if I win my appeal as Dr says I'm unfit to work, but ATOS/JC+ say I'm fine to work?!
Going down to CAB Monday- given up ringing as phone queue is in double digits
What would people go for in my situation??

debt_doctor

I hope your CAB appointment goes well for you.

You're certainly correct about the cost - £90 as opposed to £525 (in your case) - but you were thinking of borrowing £2k to get you under the DRO limit, going bankrupt would be far cheaper than that, and borrowing isn't the answer.

DROs and bankruptcy last the same amount of time (1 year) and have the same restrictions. Your income would not currently be under threat by either of these insolvency methods and you have no serious assets.

I would say that the car may well be your deciding factor as so long as it is worth less than £1k you can have a DRO and keep the car whereas it could well be at risk in BR whatever it is worth unless you can prove a NEED for it.

Good luck.

DD