Is a DRO as bad as CCJ's?

Killerseven

I have a question please, is a DRO on a credit file as bad as CCJ's or bankruptcy?

If I have a credit check on me from an estate agent, will they see the DRO?

He asked me exact words "have you got any CCJ's or bankruptcy?" I said no, but is a DRO pretty much the same thing in their eyes?

fermi

Most would see it as worse than a CCJ and as bad as bankruptcy.

DRO is public record, so yes would show on a tenancy check that displays those.

If they have any sense though they will understand that clearing your debts means you could be less likely to default on rent, compared to someone who is up to their eyeballs. But it's down to each landlord how they look at it.

jamesd

A debt relief order is a form of insolvency, similar to both an individual voluntary agreement and bankruptcy. In all three cases some lenders may have been forced to lose some of their money and the borrower is no longer required to pay that amount.

A CCJ is an order to pay but says nothing about whether the payment was eventually made or not.

Insolvency in all of its forms and certain losses for lenders are likely to be viewed as more serious than a CCJ which only means possible loss.

For a landlord a DRO is a particularly bad threat because it means that a tenant probably has so little in the way of assets that they could refuse to pay the rent and leave the landlord with no ability to collect the rent in association with eviction proceedings.

You gave an accurate answer. Your prospective landlord is now likely to refuse to let their property to you if they do a search and discover the DRO because they will, probably correctly, believe that you knowingly deceived them. You've placed yourself into the untrustworthy tenant who'll probably do a runner owing rent category.

If you want to salvage the situation, try contacting the landlord and telling them about the DRO. It's probably your only chance of getting the property and it's a slim one now, but having second thoughts beats trying it on until caught, after you may have paid more in agency fees and other costs.

Insolvency happens. Landlords know it and they know that many of their tenants will have had debt troubles, it's often part of why they are tenants in the first place. Showing you haven't reformed is one of the things you can do to make it worse and you just did that. Being up front about it and explaining how you've changed things is far more likely to succeed.

Madbags

I was discharged from a DRO 3 years ago.


When we applied for a mortgage with Nationwide just before Xmas, the mortgage advisor from Nationwide told me on the phone that as it is technically not bankruptcy and not an IVA to answer no to the "Have you been bankrupt or had an IVA in the last 5 years?" question.


It will show on your records for sure but I guess there's no need to declare it up front if you're not specifically being asked for it.

National_Debtline

Madbags wrote: »

I was discharged from a DRO 3 years ago.


When we applied for a mortgage with Nationwide just before Xmas, the mortgage advisor from Nationwide told me on the phone that as it is technically not bankruptcy and not an IVA to answer no to the "Have you been bankrupt or had an IVA in the last 5 years?" question.


It will show on your records for sure but I guess there's no need to declare it up front if you're not specifically being asked for it.

It always strikes me as strange that some six years after DROs came into existence, mortgage application forms haven't evolved to ask about them. As you say, though, any DRO in the past six years will show up on the full credit check in any case.



Dennis
@natdebtline

Madbags

National_Debtline wrote: »

It always strikes me as strange that some six years after DROs came into existence, mortgage application forms haven't evolved to ask about them. As you say, though, any DRO in the past six years will show up on the full credit check in any case.



Dennis
@natdebtline

I also find it strange to be fair which was why I was so worried about even applying for a mortgage, regardless of how improved my situation is now. I still had to provide a "reason for adverse credit" in which I detailed everything including the DRO and the end of moratorium letter from the insolvency service.


But we were accepted for a mortgage without too much hassle from the underwriters, the case was even picked out for an audit.

PaulW922

Why was the agent doing the search? If it was because you are a potential tenant them I am afraid this will not be good news. However, Estate Agents also have to comply with anti money laundering 'due diligence' requirements which means they must be satisfied that they know who their customers really are. If you are buying or selling they have have use the CRA to do that.