Considering DRO - currently on DMP

punto01

Hi guys,

I have been on a DMP for a few years now and have paid off around £12k which is amazing but - around £17k still outstanding. I now have quite low monthly payments on my DMP (just over £100) so obviously progress is slow and my current end date is like 11 years away! That's if interest is frozen and I noticed Barclaycard have just started adding interest back on at £100 a month. Great.

I WISH so much I'd done an IVA or bankruptcy back when I started out as now I would be clear / on the way to being clear. would have to check the exact date but pretty sure I've been on it around 4-5 years. So frustrating - I wish I had been pointed in a different direction.

I still live at home at 31 and am desperate to move out with my boyfriend.

So I have started looking at DRO /bankruptcy...I don't have the £700+ to go bankrupt so DRO seems like a good option. Just a bit confused about a few things.

As I am doing this because I want to move out - do I need to wait until I move out or can I apply now with the budget that I will be living on once I move out?
As I have a payment due on the 11th with SC do I still make this or cancel and hope that the DRO goes through? What if it then doesn't go through?

Do they look at your bank account - so will they analyse your spending? Question your budget? Especially now just after xmas will they look at my account and question why I spent £20 in a bar etc..

Does it affect renting? If we rented would it cause a problem?

How long after the DRO could you then sensibly apply for a mortgage!? My boyfriend wants to buy but I think will struggle to get a decent mortgage alone - how long will this affect me for?

I have my credit report so can see the current balances. If I can figure it out - at the moment it just looks like streams of words and numbers can't quite get my head around it, need to sit down and read it when quiet.

Any advice welcome! This is really stressing me out - I feel very anxious about changing anything but also desperate for a fresh start...if possible. Plan was to just slog away keep making payments get it all cleared but it's like a massive weight dragging me down/stopping me moving out...

Thanks

punto01

Also - with Step Change for my DMP so should I go them about the DRO application?

wba31

punto01 wrote: »

Hi guys,

I have been on a DMP for a few years now and have paid off around £12k which is amazing but - around £17k still outstanding. I now have quite low monthly payments on my DMP (just over £100) so obviously progress is slow and my current end date is like 11 years away! That's if interest is frozen and I noticed Barclaycard have just started adding interest back on at £100 a month. Great.

I WISH so much I'd done an IVA or bankruptcy back when I started out as now I would be clear / on the way to being clear. would have to check the exact date but pretty sure I've been on it around 4-5 years. So frustrating - I wish I had been pointed in a different direction.

I still live at home at 31 and am desperate to move out with my boyfriend.

So I have started looking at DRO /bankruptcy...I don't have the £700+ to go bankrupt so DRO seems like a good option. Just a bit confused about a few things.

As I am doing this because I want to move out - do I need to wait until I move out or can I apply now with the budget that I will be living on once I move out? - Your budget needs to reflect the situation at the time, so if you will be worse off after moving out, get into the position first so you know your expenditure, then the DRO can go ahead. If you are only paying £100 a month currently do you not have anywhere in your statement where you could spend an additional £50 a month?
As I have a payment due on the 11th with SC do I still make this or cancel and hope that the DRO goes through? What if it then doesn't go through? If a DRO is not going to a suitable option any advisor should warn you ahead of submission, if something comes up that they are unaware of they should readvise you and look at all available options

Do they look at your bank account - so will they analyse your spending? Question your budget? Especially now just after xmas will they look at my account and question why I spent £20 in a bar etc.. Bank accounts are not analysed by the Insolvency Service, and I doubt by an intermediary. You have to be honest about things, so if you inherited £10k and spent it on a trip round the world in 2015 you should declare this, but living within your budget, having a meal out or a drink or 2 down the pub is not a problem

Does it affect renting? If we rented would it cause a problem? A landlord reserves the right to perform a credit check, and the DRO will show on the check, however to most landlords they only care about getting rent. if you move before doing a DRO it will not show on a credit report

How long after the DRO could you then sensibly apply for a mortgage!? My boyfriend wants to buy but I think will struggle to get a decent mortgage alone - how long will this affect me for? The DRO will be on your credit report for 6 years. It wont be impossible to get a mortgage but you would need to go through a broker. Whilst in the DRO you could not apply for a mortgage as the house would class as an asset (even if thre is no equity)

I have my credit report so can see the current balances. If I can figure it out - at the moment it just looks like streams of words and numbers can't quite get my head around it, need to sit down and read it when quiet. Your intermediary should go through that for you to make sense of things.

Any advice welcome! This is really stressing me out - I feel very anxious about changing anything but also desperate for a fresh start...if possible. Plan was to just slog away keep making payments get it all cleared but it's like a massive weight dragging me down/stopping me moving out...

Thanks

Please see my answers above (hopefully in red). If you are dealing with SC it might be worth having a chat with them so they can advise how they deal with these things directly. If they dont offer a DRO speak to NDL or your local CAB as different advisors may see things from different angles

debtfreedream2k16

I was on a dmp with with step change and went to a dro application with them no problems.

Just waiting for it to be hopefully be granted now

We went over my budget a few times to make sure it was accurate for the dro

punto01

Thanks wba31 - helpful answers there
Will try to call them - can be so hard to get through at times

punto01

I've made the decision to try to apply for a DRO - hoping it works
Will speak to Step Change about this.

I've spent hours researching this now and feeling quite stressed over whether to go for it - feel guilty about it if that makes sense. But I saw a post where someone used the phrase "a slave to a debt management plan" and that's exactly how I feel - plodding away with another 11 years to go just makes me feel miserable. How will I ever move out and start a new life with this hanging over me!

Everything crossed I can go ahead with this and it goes through.

National_Debtline

Hi punto


Just wanted to say good luck. You have to pursue the route that is best for you and the notion of "guilt" should not come into your decision-making process.


Dennis
@natdebtline

punto01

Thanks Dennis wise words

sammymac123

How did you get on? Hope it went well