DRO - Is it the right option for me?

Cuckoo_Clara

Ok a bit of a brief background on me. I have just under £6000 worth of debt, credit cards, payday loan, other loan and two old mobile phone contracts. I have been working with Stepchange and they recommend a DRO since I have almost nothing left to other my creditors when doing an income and expenditure.


I was hoping this time around I could be sensible with credit cards having had debt problems in the past, but no surprise I have somehow screwed up again over the last year and found myself unable to pay off these debts, hence me turning to Stepchange for some advice.


I feel so ashamed of my inability to not stop spending, an addiction most certainly connected to my mental health issues.


I have previously been bankrupt twice which I am not proud of, once in 2001 and again in 2010. I cleaned up my credit file, took out a small mobile phone contract and credit building cards, but I overspent and have found myself in debt again. Stupidly I turned to Wonga and things got out of hand. I was chasing my tail making payments, but then would spend on the cards again... for the last few months all I seem to have been doing is paying off debts and spending again.


I have some questions about a DRO, my income is solely benefits as I have been out of work for several years due to long term mental health problems. I am hoping to go back to work part time next year, how will this effect a DRO if I start getting a wage, although I expect not to work more than 20 hours to start with.


What kind of information is the OR going to want to see, bank statements, credit card statements are they going to nose into how I have got into debt again and what I have spent the money on, especially given the fact I have been bankrupt previously. Are they likely to check with the DWP about the benefits I get. I recently surrendered my DLA as I felt I was no longer entitled to it, so now just get ESA and this is part of the reason I am now struggling to pay debts.


Would I be better off declaring bankruptcy again - My dad can help cover the fees of this if needs be.


Part of me is so ashamed of being out of control and in debt again, I would actually like to try to pay off these debts but I know a DMP would take many many years as I can barely offer my creditors anything.


I feel so lost and worried. And more so stupid that I have allowed myself to get into this situation again!

merlin68

im sure it said in mine that you couldn't do one if you'd been bankrupt or done a dro in the last 6 years.

Cuckoo_Clara

merlin68 wrote: »

im sure it said in mine that you couldn't do one if you'd been bankrupt or done a dro in the last 6 years.

I did read online that it said you cannot do one if you have had a previous DRO in the last six years.

fatbelly

Stepchange have recommended a DRO, and you appear to meet the criteria. As long as you have been discharged from your 2010 bankruptcy that is not a barrier to your application, though you will have to declare it.

The DRO Unit are unlikely to check anything other than your credit report, though your Intermediary may want proof of income etc. I presume you're going to do it via Stepchange.

Your Dad can help with the £90 fee.

If you start work, then your benefits will decrease and you may spend more on travel and other things. As long as your surplus does not exceed £50 per month while you are in the 12-month moratorium, then you can stay on the DRO.

Cuckoo_Clara

fatbelly wrote: »

Stepchange have recommended a DRO, and you appear to meet the criteria. As long as you have been discharged from your 2010 bankruptcy that is not a barrier to your application, though you will have to declare it.

The DRO Unit are unlikely to check anything other than your credit report, though your Intermediary may want proof of income etc. I presume you're going to do it via Stepchange.

Your Dad can help with the £90 fee.

If you start work, then your benefits will decrease and you may spend more on travel and other things. As long as your surplus does not exceed £50 per month while you are in the 12-month moratorium, then you can stay on the DRO.

Yes I was automatically discharged after a year, I spent quite a while updating my credit file. I have applied to Experian for a copy of this for Stepchange and have got a letter of confirmation from the DWP on my ESA rates.


I feel like I am taking the cheats way out... again!