Debt Relief Order Advice

dtrb1987
dtrb1987 Posts: 1 Newbie
edited 30 March 2015 at 5:42PM in IVA & DRO
I recently became a student while on an IVA but my creditors would only accept an increased payment when I gave my change in circumstances even though my financial situation was worse...
At the time I accepted it because I was scared of letting my IVA fail and thought I would be able to get a part time job to help with payments.
I haven't managed to find a job yet and I'm months in arrears so this has led to the termination process of my IVA.

I'm now looking into a debt relief order because my spare income is less than £50, I have no assets and my debt should be less than £15,000 now.

This sounds like a good idea...

But who am I best going to to sort this? I'm not sure how long the failure process will take and how long before I have bailiffs knocking at my door...

I'm currently speaking to national debt line but not read good things about them...CAB a better option?

Any advice at all about my situation would be great

Comments

  • dancingfairy
    dancingfairy Posts: 9,069 Forumite
    You probably need to check whether your debt is actually below £15,000 as many of the early payments in an IVA actually go towards the IVA practitioners fees.
    In terms of who to go with I think any debt charity should be able to help, as long as they are DRO approved intermediaries. I guess the most important aspect from your point of view is waiting lists/time to get an appointment. You could try CAB or Stepchange.
    Have you approached your IVA practitioner for a failure certificate/notification as I believe you will need this.
    df
    Making my money go further with MSE :j
    How much can I save in 2012 challenge
    75/1200 :eek:
  • MUMZ2BEE
    MUMZ2BEE Posts: 381 Forumite
    My IVA failed in July 2014 because my income was far less then was calculated, and I qualified for a DRO.

    My IVA company, Debt Free Direct held a variation meeting back in December 2014 to notify creditors of no more money being available and to terminate the IVA.

    That was nearly 4 months ago, and to date, still no failure certificate has arrived.

    I've tried calling them but they dont answer their phones, and they haven't replied to emails either.

    This certificate is preventing me from going for a DRO as I can't proceed without it, and the IVA company are reluctant to issue it.
  • fatbelly
    fatbelly Posts: 20,380
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    Yes, you need the IVA to show as terminated on the register before you can apply for a DRO

    https://www.insolvencydirect.bis.gov.uk/eiir/

    This can take ages and your debts are not likely to have had much paid off them.

    However, creditors cannot take independent action while the IVA remains in force. And the limit for DROs goes to 20k on 1 October.

    FYI National Debtline are excellent for advice and, when the time comes to find an Intermediary to make your application, CAB has more of them than any other organisation.
  • MUMZ2BEE
    MUMZ2BEE Posts: 381 Forumite
    I've been chasing my IVA company for 9 months for the failure certificate, and they are not being cooperative.

    The creditors meeting to cancel the IVA was back in December, some 5 months ago.

    I can't see what the hold up is, and I have tried to contact them and they are not replying!!
  • Hi,

    I have been on a token scheme for a year now, and after a review it was felt that a DRO was more appropriate as it was below 15000 and my income has decreased, after getting all of the information together, I have noticed that my debt appears to have increased and is now at 15600, would I still be considered for a DRO?

    Single mum in desperate need
  • debt_doctor
    debt_doctor Posts: 4,595
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    Hi,

    I have been on a token scheme for a year now, and after a review it was felt that a DRO was more appropriate as it was below 15000 and my income has decreased, after getting all of the information together, I have noticed that my debt appears to have increased and is now at 15600, would I still be considered for a DRO?

    Single mum in desperate need
    Hi, You are over the £15000 threshold so cannot have a DRO at this time. However, the DRO limit increases to £20 000 in October this year, at which point you will be eligible (providing you fit the other criteria)
    DD
    Debt Doctor, Debt caseworker, Citizens' Advice Bureau .
    Impartial debt advice services: Citizens Advice Bureau Find your local CAB *** National Debtline - Tel: 0808 808 4000*** BSC No. 100 ***
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