Just applied for DRO

Goingalone

Hi there. I'm very new and needing some advice!
I've just faced realities and called step change for a DRO.
My debts are over £12000 from stupid choices and poor decisions.
The advice I got was to ring all my creditors and tell them my situation and offer a token £1 payment in thr mean time while the DRO is being set up.
Should I ring them, or write?
I'm feeling good about getting the ball rolling just hoping that I can get accepted and have a fresh start ahead of me.

sourcrates

Goingalone wrote: »

Hi there. I'm very new and needing some advice!
I've just faced realities and called step change for a DRO.
My debts are over £12000 from stupid choices and poor decisions.
The advice I got was to ring all my creditors and tell them my situation and offer a token £1 payment in thr mean time while the DRO is being set up.
Should I ring them, or write?
I'm feeling good about getting the ball rolling just hoping that I can get accepted and have a fresh start ahead of me.

Hi,

A DRO is usually set up within a few weeks, if I were you, I'd just write to each one telling them of your DRO and that the insolvency service will be in touch in due course, no point making any payments in my opinion.

fatbelly

I agree token offers are a waste of time (and money) in this situation - start to get the £90 together as soon as you can.

I am also cautious about telling creditors about a DRO - most won't believe you until they see the proof that you have one anyway. One of my clients made the mistake of telling a bailiff they were getting a DRO. His reply was 'I'd better come around now then'

If you need to contact creditors, do it in writing.

sourcrates

There is actually quiet a lot of paperwork to get gathered up for a DRO application, for starters, you need to get a copy of your credit file, from each credit reference agency, to make sure all your debts get included.


You will need your last two payslips, (or copies) and a list of your creditors, including up to date amounts outstanding to each, you will also need every account number or reference number, for each creditor.

The actual DRO application form is quite short, and just requires a few details filling in.

The most important thing with a DRO application is the budget you have given stepchange, it must tally so you have £50 or less left every month, (best to be less) non essential spending, such as smoking, wont be allowed in a DRO, and the official receiver may decline your application if you put too high a figure (or any figure) in that bracket.

So you see there is a lot of things you need to be doing in preparation for this, so making token payments to creditors should not be foremost in your thoughts just now !!

Goingalone

Thank you all so much.
I'm pretty new to this site! And some of the threads have been really helpful reading.
I'm coming up to a payment date for 2 credit cards which I won't be able to make.
Should I let them know or wait for the DRO.
The income and expenditure I did with step change was very detailed and I don't have anywhere close to £50 spare at the end of the month.
Regarding getting credit reports, should I wait for the first lot of paperwork from stepchange, or gather it asap?

Thanks for your replies.

sourcrates

No need to tell creditors a thing, what purpose would it serve ?

The world will not end because you didint pay your credit card, you may get phone calls or letters, but that's it, you can safely ignore for now.

Get your credit reports ASAP, most report to Noddle, but you must check all three, you do not want to miss a debt you'd forgotten about.

If your DRO is granted, all well and good, if not, you'll need to look at other options, but I think something like 98.9% of stepchange DRO applications are approved, so you should be ok.

DorisTrousers

Have to disagree with the notion that non essential expenditure is not allowed, what you spend your money on is entirely a matter for you.

Neither Intermediaries nor The Insolvency Service have any interest in judging peoples spending habits. It is fair to suggest that any areas where expenditure may be a little high may be discussed, as well as any other way of saving money where possible, but in reality it matters not a jot if you spend £50 a week on fags and £10 a week on food, as long as you do not breach trigger figures on the CFS. Even then, if you did breach these figures, then if there is good reason to do so you would have little problem in getting a DRO through. If StepChange have a different policy on non essential spending then that is a matter for them, the vast majority of Intermediaries (and I am one myself) will take a more pragmatic view. The real danger of ignoring non essential spending is that if you do not take account of it then you get an incorrect disposable income figure, which can then lead to inappropriate debt solutions being recommended in the first place.

sourcrates

DorisTrousers wrote: »

Have to disagree with the notion that non essential expenditure is not allowed, what you spend your money on is entirely a matter for you.

Neither Intermediaries nor The Insolvency Service have any interest in judging peoples spending habits. It is fair to suggest that any areas where expenditure may be a little high may be discussed, as well as any other way of saving money where possible, but in reality it matters not a jot if you spend £50 a week on fags and £10 a week on food, as long as you do not breach trigger figures on the CFS. Even then, if you did breach these figures, then if there is good reason to do so you would have little problem in getting a DRO through. If StepChange have a different policy on non essential spending then that is a matter for them, the vast majority of Intermediaries (and I am one myself) will take a more pragmatic view. The real danger of ignoring non essential spending is that if you do not take account of it then you get an incorrect disposable income figure, which can then lead to inappropriate debt solutions being recommended in the first place.

Good point, I was referring to stepchange, I think it depends on the advisor, as two people can read from the same hymn sheet, and still tell a different story.

Goingalone

Hi there, it's been about a week now since I rang step change and they said that they would send out the DRO papers withing 3-5 days. I've not had anything yet. Because I've now missed 2 payments on credit cards and payday loans I'm starting to get texts, emails and calls.
I've set up a different bank account in the meantime.
I've also emailed step change asking when I could expect them.
Has anyone else had to wait so long?
I just have visions of debt collectors at the door. Irrational I know but I just want to start the process.

sourcrates

Goingalone wrote: »

Hi there, it's been about a week now since I rang step change and they said that they would send out the DRO papers withing 3-5 days. I've not had anything yet. Because I've now missed 2 payments on credit cards and payday loans I'm starting to get texts, emails and calls.
I've set up a different bank account in the meantime.
I've also emailed step change asking when I could expect them.
Has anyone else had to wait so long?
I just have visions of debt collectors at the door. Irrational I know but I just want to start the process.

Ah don't worry about it, debt collection takes many months, even years.
Nothing will happen for missing 2 payments.

Calls and letters yes, solution ? Block numbers, feed the recycle bin.

I'm sure SC will be on the case, if nothing comes next week, give them a quick ring.

Goingalone

Thought id update you all. Just sent off the first lot of DRO papers that included the list of debts and who they're with.
Getting plenty of phone calls from the creditors
I've emailed them asking them to back off while I sort out my fiances.
I thought I'd feel more relieved doing it all but I don't think I will until it's approved