DRO bricking it

Simplyme

This is the first time I have posted on this thread.

As my title suggests I am bricking it . I have just been accepted onto a DRO by the IS and I am in the early stages when the creditors will be informed.

The reason I am concerned is I am aware Creditors can appeal. They are mainly well known High street banks and one credit card company. (2 loans , 2 credit cards and one overdraft - three of debts with same creditor)

I do have a low income and meet all the other criteria as regards assets and debt level (a couple thousand below the 20k limit) as far as I can see but surely it is within the creditors interest to appeal every case?:mad:

Most of the debt has arisen from taking out more debt to refinance and live off and not getting a good enough job following redundancy.

It has taken me months to get to this stage and to go for the DRO as the other option would be taking another 20 years to pay off the debt. I was adviced to take bankruptcy in 2008 ish but never did thinking it was better to pay my way but the debt has got out of hand again with little prospect of paying it off in the short term.

I have gone through months of stress and worry probably years, so I think I need to draw a line under it.

I do not feel too guilty as some of the creditors have made a good deal of money from the original amount borrowed with interest charges etc. I always wanted to try and sort things out properly by paying off but circumstances have not allowed for this.

So here I am in the early stages and feeling quite scared.:eek: if I am to be honest. What are the chances creditors will appeal. I am kind of anxious and happy at the same time as there is still the possibility creditors will appeal and 'the rug will be taken away from underneath me'.

Any views about how likely an appeal is by the major high street banks would be much appreciated and support from anyone who has been through / going through the process. I have had some level of debt since 2007 and decided I wanted to have a fresh start and not have the debt hanging over me for a long time when I have been struggling to make ends meet on a low income.

Thanks in advance for any replies!

I will also try to use this thread to post how I am getting on.

Simplyme

fermi

I don't know the precise stats, but it seems very rare for creditors to make an objection. Especially on things like bank/consumer credit etc.

It is not an appeal. They can object, but they must have very specific valid grounds which if your DRO was done properly then is very unlikely again.

See: https://www.citizensadvice.org.uk/debt-and-money/debt-solutions/debt-relief-orders/while-a-debt-relief-order-is-in-place/can-your-debt-relief-order-be-stopped/

Honestly, I would imagine it will not be a problem in the slightest.

People get thoughts like this due to residual anxiety, so it's natural, but very very very likely unfounded.

Simplyme

I do hope so as if this does go through properly it will be a great weight lifted off my shoulders.

[Deleted User]

You're right.

Time passes very quickly, it flys by.

I don't let anyone make me feel guilty - accepting low wages and reduced hours much more than one time, minimal benefits (never received more than jsa and not for that long) and the compo mad world helps greatly. Most of the times I am glad I don't have to feel extreme anger over debts, I've learnt lessons and that outweighs any negative.

The most jolly respectful people I've ever met along the way have actually been the least thought to so try not to worry. My advise is to really keep absolutely everything paperwork wise and if you can tell your family - do.

Simplyme

Hi I have received one letter already into my DRO from the second of my major creditors that they have recognised the order and will in effect only pursue should the DRO be revoked. So already one step forward.

Will keep people posted how things are going. The major debt is with a credit card, loan and overdraft with one major high street bank.

One question is I have is does your local bank branch banking staff get to know about the DRO as it is quite embarrassing as I am in contact with the public? Probably just my paranoia and obviously I am doing this to sort myself out.

I will feel much better when I hear no creditors have appealed etc

Simplyme

National_Debtline

Hi simplyme

Simplyme wrote: »

Will keep people posted how things are going. The major debt is with a credit card, loan and overdraft with one major high street bank.

One question is I have is does your local bank branch banking staff get to know about the DRO as it is quite embarrassing as I am in contact with the public? Probably just my paranoia and obviously I am doing this to sort myself out.

I will feel much better when I hear no creditors have appealed etc

Simplyme

Staff at a local branch level aren't typically going to be scrutinising your credit report, or the DRO register for that matter. More to the point, you won't now be having any dealings with the bank(s) whose debts went into the DRO.


Objections by creditors are in my experience incredibly rare, and even then will not stop the DRO going ahead unless it can be shown that you are not in fact eligible (e.g. undisclosed debts taking you over £20K, undeclared assets etc.).


Dennis
@natdebtline

Simplyme

Thanks for your reply that has put my mind at rest about local staff knowing.

I am in the early stages of my DRO but I would think by now the creditors will have all received letters from the OR

One bank with whom I had a Loan . overdraft and credit card and another credit card company I notice I can still log into the accounts and they have not been closed which I am quite suprised about. Should they have closed the accounts by now and should I be informing them of my DRO? If so what is the timeline. Obviously I am not going to use the accounts any more but I would have thought hey would be quicker to close them, like one creditor who has done this,;)

Simplyme

fatbelly

There's really no need for you to be testing whether you can still log into your accounts. The major creditors are all emailed at the same time your Intermediary was. If they are slow to react, that's their problem.

My experience is the same as Dennis - there are only a few DROs that ever get revoked through creditor objections , and these are usually because the client has more debt with a creditor than they declared, and the additional debt takes them over the threshold.

Simplyme

Thanks all,

This has been daunting with hours spent on before on the phone to the debt charity and creditors in the run up.

Also I have been struggling with debt on a low income and living in large overdraft for a long time so if this works out could be the best thing I have ever done. There is a bit of fear about the stigma of being a 'bankrupt' which I think is only natural - a DRO is a serious and quite a limiting decision in the short- term but could change my life for good in the long term.

Unfortunately someone in the family saw the order letter envelope with INSOLVENCY SERVICE emblazened on it next to where the letter was paid -I was a bit shocked that they do not send in a plain envelope with a stamp as surely this could cause repercussions in people's families /neighbours or from a violent partner if they found out and the other person wanted to keep it confidential?

Also the envelope was the window type and it looked like the letter had not been folded well / or pushed up so the DRO order number could be read by the postman or anyone else. Surely it should be more confidential?

Simplyme

National_Debtline

Hi again

Simplyme wrote: »

Unfortunately someone in the family saw the order letter envelope with INSOLVENCY SERVICE emblazened on it next to where the letter was paid -I was a bit shocked that they do not send in a plain envelope with a stamp as surely this could cause repercussions in people's families /neighbours or from a violent partner if they found out and the other person wanted to keep it confidential?

Also the envelope was the window type and it looked like the letter had not been folded well / or pushed up so the DRO order number could be read by the postman or anyone else. Surely it should be more confidential?

Simplyme

That is something you may want to feed back to the Insolvency Service on. I have to assume that they conform to the basic confidentiality and data processing requirements, though in practice it can be hard to legislate against specifics such as poorly stuffed envelopes.


Strictly speaking, your DRO is a matter of public record as anyone can check the register for your name - though I appreciate that is not quite the same as it being actively brought to everyone's attention.


Dennis
@natdebtline

mum2one

Well done, I'm a couple steps behind you, just finalising my budget / getting totals and be on the DRO route again I'm a bag of nerves, put off applying twice before, so will be supporting you from afar, xx