DRO Advice - whats it like to live with?

JimmyB44

Hi there..

On a recent trip to the Job Centre, I was collared by a CAB Advisor who was performing a survey on how JSA claimants were coping with there debts whilst out of work.. After the interview, she advised me that I would be eligible for a DRO.

I have since had them calling me today trying to get me to speak to an advisor about my debts, and to see the best way forward. I have since done some research into DRO's and I am just wondering what they are like to live with?

I have two debts that really concern me..
-Catalogue debt; £2400 (had a CCJ; payment arrangement £40/month)
-BarclayCard; £1400 - with a DCA, £20/month)

Now I am currently unemployed, but very hopeful on beginning a full-time job at the start of December. Either way, bouncing back to full-time work is still not going to leave with me any money to allocate towards debts once I have paid the obligatory Rent, CT, Utility Bills, TV License and Mobile phone..

To me, it just sounds too good to be true.. I think the lady in the JC glossed over it and therefore I want advice on what they are like to live with?

Having it on my Credit File for 6 years does not affect me personally. I dont have any active credit, nor do I have the desire to obtain any. My partner works part-time and has an excellent credit rating - so we rely on hers should the occasion require it. Its going to take us the next decade to save for a mortgage - optimistically, so no credit doesn't worry me.

Just seems to good to be true?

fatbelly

Most people on DROs don't have problems - they no longer have legal liability for paying their debts and the creditors are not allowed to demand payment. They are allowed to keep the person informed of the balance as technically the debt is only discharged at the end of the 12 months.

You say you are only concerned about 2 debts. Are there others you aren't concerned about? All must go in.

There's info here

https://www.nationaldebtline.org/EW/factsheets/Pages/37%20EW%20Debt%20relief%20orders%20(DROs)/Default.aspx

and here

https://www.gov.uk/government/publications/debt-relief-orders

JimmyB44

Thank you for your reply, I will take a detailed look at the links you have provided.

I have got other debts.. I know there are companies that have contacted me about balances in the past, and I have negligibly ignored it.. I have lived at my present address for nearly a year now, and have not had any further communication with these companies. I have presumed as they have not contacted me that they are not to interested in pursuing the debt..

Is it worth me paying to see what entries are on my Credit File in order to make me more knowledgeable about who thinks I owe what?

At maximum, its another £500 on top. But like I said, I haven't been contacted in over a year for any of these - only BC/CCJ.

With regard to a DRO, after 6 years - what happens to your Credit File, is it in effect back at the start?

fatbelly

Yes, the DRO entry on your credit file says for 6 years then drops off. The individual debt entries should be defaulted at the date of the DRO, if not before. So your file clears after 6 years.

As part of the DRO process your intermediary has to get an Experian report. You might as well get one yourself and find out what is there. A £2 statutory report would do.

longtermplanner

Now I am currently unemployed, but very hopeful on beginning a full-time job at the start of December.

In that case it may be better to wait and see how your situation pans out. Your debts are not very high for someone in work. If after a couple of months in work you still feel you are unable to repay them within a reasonable timescale, then look at a DRO

[Deleted User]

Barclaycard do not forgive and only put partially settled as late as possible on file-lenders are just stopped from persuing in a court

It's only cost me 3 jobs, I've been called bankrupt twice and this was by the most 'respected' apparently of lenders, though it helps if you stop thinking you will get a mortgage, seriously for people who need it, it's a blessing that you are not charged the full BR fee for and it motivates you to never rely on the state

I consider myself lucky to borrow from what is known as 'legal loan sharks' at same rate as overdraft if needed

alastairq

On the other hand, full Bankruptcy [a DRO is Bankruptcy, but a fast-track version]....has never ever cost me anything [quite the contrary] in terms of job, self respect, and would not prevent me obtaining a mortgage [if I wanted one]....and whilst I agree, for the first few years after Discharge, if I wanted to obtain credit, I might be a bit limited with regards where I could get it, I am now receiving offers of low-rate credit cards.

I have actually had a couple of [sub-prime] credit cards for a few years now...my files are pretty clear, and I have even taken pleasure in defending an attempt by a DCA to claim via the Courts, at no expense to me [wouldn't have mattered anyway, because full costs and expenses could be counter-claimed off the DCA through the Court anyway]

The most important aspect of a DRO [or a BR], which, IMHO, doesn't really occur with other forms of debt remedy, is that one has the opportunity for a completely fresh start.

Without the detritus of debt and other millstones, hanging around one's neck.

And all forms of debt remedy leave a long-lasting trail on one's credit files....

wba31

alastairq wrote: »

On the other hand, full Bankruptcy [a DRO is Bankruptcy, but a fast-track version]

dont say that to the Insolvency Service!