Debt Relief Order and loan balance

45rpm

I'm new to this board but looking for some advice.

Citizen Advice advised me to either take out a DRO if I can but I'm unsure if I qualify or it's bancruptcy.

I have a few debts but the big one is with Tesco Bank and I'm unsure if the figure for the DRO is the amount I have to pay back or the figure with interest ?

For example

Total amount outstanding is £20,000+

Total needed to repay loan is less than £20,000

Which figure would be used in the event of Debt Relief Order

I hope someone can advise I am struggling at the moment, about to lose my home and have no job due to suffering from depression.

Thank you in advance

sourcrates

45rpm wrote: »

I'm new to this board but looking for some advice.

Citizen Advice advised me to either take out a DRO if I can but I'm unsure if I qualify or it's bancruptcy.

I have a few debts but the big one is with Tesco Bank and I'm unsure if the figure for the DRO is the amount I have to pay back or the figure with interest ?

For example

Total amount outstanding is £20,000+

Total needed to repay loan is less than £20,000

Which figure would be used in the event of Debt Relief Order

I hope someone can advise I am struggling at the moment, about to lose my home and have no job due to suffering from depression.

Thank you in advance

Hi,

The £20,000 DRO limit refers to your outstanding debt as it is now, not what it would be in the future.

Advice here :

http://www.stepchange.org/Howwecanhelpyou/DRODebtrelieforder.aspx?WT.srch=1&WT.mc_id=287026&WT.seg_1=%2Bdro&gclid=CJ691JH8wskCFUuNGwodpXUBFQ

45rpm

Thank you for the reply Sourcrates.

But I'm not sure I understand your answer. Do you mean my debt is the figure under £20,000 as interest isn't added yet ?

Thank you

fatbelly

It's the figure the lender is quoting as the 'balance' - they should be reporting this figure on a monthly basis to the credit reference agencies.

It's probably the lower figure but I can't be sure from your phrasing.

If you are a homeowner (about to lose my home) then you're disqualified anyway.

fermi

The £20K limit is for a "liquidated sum payable immediately or at some certain future time".

45rpm

No I rent my home. But will be evicted as I can't pay the rent and my debts.

The wording they use is

Total Amount Outstanding - £22000

Less Interest Rebate - £4,500

Total Amount Needed to repay Your Loan - £17500

45rpm

fermi - I'm not sure how " The £20K limit is for a "liquidated sum payable immediately or at some certain future time"." helps ? I'm not sure if it's more or less than £20k that's my question. Sorry

fermi

45rpm wrote: »

fermi - I'm not sure how " The £20K limit is for a "liquidated sum payable immediately or at some certain future time"." helps ? I'm not sure if it's more or less than £20k that's my question. Sorry

Sorry. Had a longer reply, but killed it as fatbelly replied while I was typing. Question you need to get an intermediary to answer is which figure qualifies under that legal definition. I could make an educated guess, but would not be certain.

45rpm

fermi wrote: »

Sorry. Had a longer reply, but killed it as fatbelly replied while I was typing. Question you need to get an intermediary to answer is which figure qualifies under that legal definition. I could make an educated guess, but would not be certain.

Thank you for your replies. I appreciate it. We seem to be back to my original question though. Can anyone advise on how I find out which figure is the right one ?

sourcrates

45rpm wrote: »

Thank you for your replies. I appreciate it. We seem to be back to my original question though. Can anyone advise on how I find out which figure is the right one ?

Give stepchange a call tomorrow, and discuss it with there DRO team, they will be able to give you a more definitive answer.

45rpm

sourcrates wrote: »

Give stepchange a call tomorrow, and discuss it with there DRO team, they will be able to give you a more definitive answer.

I will do that - thank you