DRO question

Megandots

Hi, I'm new here. I have struggled with debt for many years. I successfully completed an IVA in Jan '16 but since then have just slipped back into debt again. I realised I needed help and asked my creditors (credit cards and catalogue) if they would accept reduced payments but none replied and now I can no longer pay the minimum monthly amount. I researched my options and spoke to Step change who discussed my options and we came to the opinion that a DRO would be the best bet so I went with that. Today I received my barcode to pay the £90 fee but before I go ahead I have a couple of questions as I want to get this right and not risk getting declined.

Q1: Would my recent completion of my IVA (although now not even on the Insolvency register) have an effect on my DRO being accepted by the Insolvency service?
Q2: My most recent spend on a credit card was the middle of April so would I be better waiting to pay the £90 fee?

I am getting letters already from my creditors as I am not keeping up the minimum payments but my bigger worry would be that my DRO would be rejected then I wouldn't know where to go next.

I hope someone can advise me as I cant get this wrong.
Thanks in advance.

sourcrates

Hi,

If there's a chance of the DRO been rejected your intermediary would not submit it.
It's there job to make the case as watertight as possible.

As long as you have a reasonable explanation of why you got back into debt, it won't be an issue.

Trust your intermediary !!!

National_Debtline

Hi Megandots

Welcome to MSE. I would reiterate what Sourcates said, your intermediary is there to guide you and should have explained any risks they felt there were with submitting your application to the Insolvency Service.

What I would add, to really make the DRO count make sure you now have a monthly budget you can stick to so you don’t slide back into debt again. You can complete a SOA here http://www.stoozing.com/calculator/soa.php. Remember you won’t be able to have another DRO for 6 years.

Susie
@Natdebtline

Megandots

Many thanks for your replies it has put my mind at rest.

Megandots

My application was submitted to the Insolvency Service last Thursday but nothing has appeared on the IIR list yet. How long does it usually take if succesful please? Nail biting has begun this end. My intermediary said the Insolvency service would be in touch with ten days.

fatbelly

Should have been accepted yesterday.

Check the register today

Dullville

Mine my submitted last Wednesday and was on the register 2 days later..:beer::beer::beer:

Megandots

Thanks again for your help I'm on there. Not celebrating as I'm disappointed in myself for getting in this mess so hopefully none of the creditors will put a spanner in the works and I can work on getting back on track again and getting well.

sourcrates

Megandots wrote: »

hopefully none of the creditors will put a spanner in the works and I can work on getting back on track again and getting well.

Thats it now for 12 months, you wont hear from your creditors, nor the insolvency service again.

After the moratorium period, your debts will be legally wiped, and that will be that.

There is no official (or unofficial) acknowledgement that it has ended either, just keep an eye on the calendar.

ToxtethO'Grady

Remember also to keep a record of your DRO number and what debts have been included as your debts may have been passed to a debt collection agency.

They may sell the debt on after your DRO has completed,usually a bulk sell by them, so you may get contact chasing it and before they'll stop they'll ask for those details.