thinking of applying for a dro

leroy1985

hi, so im in a bit of a mess and have ignoered it for many years, now i got a letter wich i randomly decided to open rather than throw in the bin, its from lowel threatening a ccj, legel assesment letter or something the debt is for £448, im currently unemployed and living with parents, i have no money like at all, nothing, this is why i ignore them because whats the point talking to them if i can offer them nothing.

i was considering a dro, debts are way under 15.000, i have a few differnt debts, one with capital one passed to lowell, i have another credit card but i cant even remeber who its with, then i have like 4 payday loans, quickquid, wonga and other, thing is with dros they want me to give ingformation on the creditors i owe money but i have no idea who they all are and i have no statements as i stupidly binned them.

can i get a bit of advice on how to proceed with the dro and how to get the info i need to make the claim, i have pretty much no assets, i have a tv wich was 150 pounds when i brought it, how do you even figure out how much my assets are even worth, oh and even know im not going to lie, i thought to myself do they just take people word for the assets you own ? seems weird to me is all.

i realise it costs 90 pounds wich im going to have to get somehow. i just want to sort myself out now finaly. obviously looking for work too atm. i was working when i took the debts on and paying back in 1 pound installments payment plans but that was years ago.

thanks for any advice

wba31

The first thing you need to do is to begin to find out exactly how much you owe and to whom, dealing with letters, getting your credit report (can be obtained for free from Experian or Noddle) and working that part out. An intermediary can only list what you tell them about, and if you miss anything off it cannot be added on once approved and you would remain liable for the amount, unfortunately that is a rule set by the Insolvency Service.

Once you have that you need to approach a debt advisor who is an approved intermediary, CAB, StepChange or National Debtline would be who i recommend. they will then create your application and submit it once it's ready.

With regards to assets you will be asked to be honest, and you will verbally agree a declaration saying that you have been honest, and if for any reason it is found you havent you could be liable for prosecution. if all you have is your TV and small bits and pieces it is unlikely that you need to worry, you only need to declare items of considerable value if you were to put them on ebay or something

leroy1985

ok thx for the reply so if i get a credit check it will tell me all the creditors i owe money too ? because like i say ive got no letters with information on apart from lowell wich was for captital one, is it ok if i only remeber the original creditor ?

leroy1985

so lowell just sent me another letter a couple of days after the ccj threat saying they have been looking for information on me and have found out that i am workiing, ive not been in work for quite a while now so ive no idea where they got that info from.

HappyMJ

leroy1985 wrote: »

so lowell just sent me another letter a couple of days after the ccj threat saying they have been looking for information on me and have found out that i am workiing, ive not been in work for quite a while now so ive no idea where they got that info from.

Have you recently applied for a payday loan declaring you are in a job to get the payday loan but you really did not have a job? That information you enter on any application is stored on the National Hunter database. You can ask them for a copy of whatever information they hold.

mwarby

assets - generally all household goods don't count as assets, so you don't have to include tv, hifi, games console , computer, whitegoods, kitchen gadgets, nic nacs, toys, clothes etc.

furniture, art and jewelery are also usually excluded, except if they are particularly valuable. Furniture wise unless it's antique they won't be interested

leroy1985

i guess i may have, i cant really remember, thing is if i did do that it would of been a long time ago, im not working and am not on benefits, should i let them know im not working and arnt on benefits ? i dont really see the point if i cant afford to pay them anything what so ever

leroy1985

mwarby wrote: »

assets - generally all household goods don't count as assets, so you don't have to include tv, hifi, games console , computer, whitegoods, kitchen gadgets, nic nacs, toys, clothes etc.

furniture, art and jewelery are also usually excluded, except if they are particularly valuable. Furniture wise unless it's antique they won't be interested

well i brought the tv with the credit card and also i built a pc in parts and paid using the cad but sold the pc ages ago but still have the tv

so ill give more info on what this letter says, it says

we have obtained information about you and youre current financial status from a credit ref agency, so i guess you were rite but that would of been ages ago and it would of been refused anyway thats for sure.

it goes on

we belive you are working, have other credit products and that using county court is a realistic way to recover money, if any information is incorrect of if you have any reason to think we shouldnt proceed with legal action please contact us

what should i do next guys ? should i contact them ? whats thye point i cant offer them anything, but it kinda of annoys me they think i have a job.

mwarby

A DRO would stop the court action, if I was going for DRO I would just do it, nothing to be gained telling creditors before it's granted.

From a credit history perspective, not getting a CCJ would be an advantage, but the DRO has a much more serious effect(same as bankruptcy, to many or most creditors)

The items you describe won't count as assets, how you purchased them is largely irrelevant. You should though avoid getting in to more debt, no you know your insolvent

leroy1985

so my first step to getting a dro would be to get a credit check ? then contact an adivisor ? take it its not worth doing till ive got the 95 quid ? i heard you can pay in installments but cant get it till it paid, but would it stop them taking court action even if ive only made a small payment towards it ? like as in im in the process type thing ?

mwarby

The first step is to compile an up to date, complete list of creditors and balances. How you do this depends on how organised your paperwork is, if relying upon CRAs best to get all 3 as not every creditor reports to all

I'd think the DRO wouldn't start until £95 was paid in full. But if you make a start now on installments, you can save for it and get paperwork started(if you have to get copies of anything sent out like statement, best to find out early)