Bankrupt twice now DRO

busymumy

A friend of mine has been bankrupt twice, first in 1996 and then again in 2006. She is now looking at doing a DRO as she has got herself into trouble again.

Does anyone know if there are going to be any more restrictions put on her? Or even if she will be allowed to do one.

I really thought she would have learned from the second bankruptcy but she continues to live out of her means.

longtermplanner

Some people never learn

Provided she doesn't have a BRO/BRU in place (which would be very unusual after 7 or 8 years), she can apply for a DRO.

In theory she could get a Debt Relief Restrictions Order see http://www.bis.gov.uk/insolvency/personal-insolvency/dro-drro . I haven't actually come across one of these. I guess that it is so long since 2006 the OR is likely to raise an eyebrow and sigh deeply rather than go for a DRRO, but I have no evidence to back that up.

fatbelly

She will have to declare it on the application but it shouldn't cause any problem.

She's in good company

Is Kerry Katona heading for her third bankruptcy?

National_Debtline

longtermplanner wrote: »

I haven't actually come across one of these. I guess that it is so long since 2006 the OR is likely to raise an eyebrow and sigh deeply rather than go for a DRRO, but I have no evidence to back that up.

I don't think it will cause any difficulties either. Infact, I tried to find reference to similar historic cases and I couldn't find any.

- David.

busymumy

Just wanted to update to say she got the DRO with no sanctions imposed.

Maybe this time she will learn and not continue to live beyond her means, but I doubt it.

National_Debtline

busymumy wrote: »

Just wanted to update to say she got the DRO with no sanctions imposed.

Maybe this time she will learn and not continue to live beyond her means, but I doubt it.

Thanks for the feedback on this OP, it's very useful.

This sounds like quite a sad case really. Some people are just very prone to relapses into historical patterns of behaviour, and I don't imagine your friend has been in a particularly happy place over this period. Do you know what support (if any) she has sought to address the underlying issues e.g. compulsion/addiction?

Regards

Dennis @NDL

wba31

busymumy wrote: »

Just wanted to update to say she got the DRO with no sanctions imposed.

Maybe this time she will learn and not continue to live beyond her means, but I doubt it.

She will not be able to do another DRO for 6 years (unlike bankruptcy), so because of this the first DRO applicants are still not able to apply again (April 2009) so we havent seen any cases of how the DRO Unit respond to a 2nd a DRO...

Hampshire345

busymumy wrote: »

Just wanted to update to say she got the DRO with no sanctions imposed.

Maybe this time she will learn and not continue to live beyond her means, but I doubt it.

how long did the DRO process take her?

busymumy

National_Debtline wrote: »

Thanks for the feedback on this OP, it's very useful.

This sounds like quite a sad case really. Some people are just very prone to relapses into historical patterns of behaviour, and I don't imagine your friend has been in a particularly happy place over this period. Do you know what support (if any) she has sought to address the underlying issues e.g. compulsion/addiction?

Regards

Dennis @NDL

Im not sure she has sought any support as she doesnt think she has a problem. She just puts it down to having a job and then losing hours, then not having a job etc. But in all that time she still pays £90 for a hair cut and gets her nails done every 2 weeks at a cost of £35. Has the full sky package, brighthouse TV, new sofa out the catalog etc (her daughters catalog so still having to pay this). Her mum even lost her house as she got alot of loans for her and couldnt pay it back.

Ive tried to talk to her about it, advised her to visit these forums and the debt free board but shes not interested. And I guess as long as she see that she has a way out, either be it with bankruptcy or DRO then she is going to continue.

busymumy

Hampshire345 wrote: »

how long did the DRO process take her?

Im not sure to be honest, she told me that she had spoken to CAB and they had recommended the DRO and that they were helping her to fill the forms out. Then about 4 to 6 weeks later she sent me a text asking me to lend her the £90 for it as she had no money.

Im struggling to pay my own bills so couldnt help her. But she must have got the money from somewhere as she paid it and it went through.

fatbelly

busymumy wrote: »

Im not sure to be honest, she told me that she had spoken to CAB and they had recommended the DRO and that they were helping her to fill the forms out. Then about 4 to 6 weeks later she sent me a text asking me to lend her the £90 for it as she had no money.

Im struggling to pay my own bills so couldnt help her. But she must have got the money from somewhere as she paid it and it went through.

'Borrowing' the £90 causes a problem, technically, as that becomes a debt that must be listed and not repaid.

However, there are a few charities around that will help with the £90. Perhaps that's what happened.