DRO queries for Daughter

fiveyearplan

It's been a while since I've been active on the boards. I am very close to my 6 year BR mark but I'm here seeking info for my daughter.

She has a car on HP and the balance is in the region of £7,000 although the car is worth probably half that. Actually I just looked up on auto trader and it is coming up £4,600 private sale and £4,100 to a dealer.

Her car payments are £200 per month and she has 35 months left. Apart from that debt she has 3 phone contracts all with approx 15 months left to run and in the region of £35 each. Apart from that I think she has an overdraft of £300 ish. She would like to keep one of these would that be possible?

Today is the last day at her job where she has worked for 2 1/2 years. She left because she got a better paid job. However she will only be able to work for the next few months as she just found out she is going to have a baby (yes, I know I look far too young to be a grandmother!!! You are the first one to know.) So seeing as she just started a new job a couple of weeks ago (jobs have been overlapping) she will have no maternity rights or anyway not be in a position to work as she will have a new baby to look after and her income is low anyway - new job is minimum wage which is almost double what her old job was.

So I have tons of questions and I will read the board to try and catch up however apart from 12 month restrictions will a DRO stay with her for life like BR would?

Many thanks in advance for your help. Also grateful if you know me on any other social media if you can please not mention daughter's pregnancy as she has not told anyone yet.

fermi

Hi. FYP.

Congrats on the pending grandmotherhood.

DRO will be on credit files for 6 years, and during that would essentially be treated as bad as a full bankruptcy.

And yes, if asked on an application if you have ever had a DRO, you would have to answer yes.

However, a DRO does not go in the London Gazette.

fiveyearplan

Thanks Fermi. This is a last resort if she can't come to some arrangement with the HP company. Would she be able to keep a phone contract?

fermi

Should be able to as far as I know, assuming it's not excessive on the budget.

I'll let debt doctor know about this thread as he can answer from an intermediaries point of view.

fiveyearplan

Thank you!

debt_doctor

fiveyearplan wrote: »

Thanks Fermi. This is a last resort if she can't come to some arrangement with the HP company. Would she be able to keep a phone contract?

Hi FYP,


Congrats on being a future grand parent!


So, mobile phone contract can be kept so long as the account is up to date at the time of the DRO application and that its cost is reasonable - up to / around £40 should be reasonable.


Are you sure that the HP is really HP - some companies dress up ordinary loans to look like HP even with the vehicle reg no. and other details on the agreement.


Fire away with any more questions.


DD

fiveyearplan

Thanks DD. I'm pretty sure the car is on HP but will try and find the agreement to double check.