DRO ins & outs.........

maxmycardagain

My total debts are...

£10k plus a car debt

car is on HP, ive paid 23% off after 1 year

So i owe £18k

the settle is £14k

WBAC say its worth £11k

The finance said sell it and clear the £14k but its never gonna make that much

If its taken and sold and the income (lets say £10K) is knocked off my total owing (as the agreement says) I owe either £8000 or £4000

In either case id owe under the DRO limit of £20k

So if i stop the car payments now it should be taken off me in about 2 months, in 6 months and owing under £20K i might try a DRO saving £600 in BR fees...

Does all that sound about right?

Clouds88

Depends on your circumstances, have you sought debt advice?

For example if you sell the car at 11k, you still owe the insurance 3 K and then you have the remaining 10k... but depending on how much more a month you’ll have now you haven’t got the car payment and factor in buying a cheap one for £500-1000. Would a DMP be a better option? Freeze all interest and pay at your own pace.

It depends on your life situation and what you want to gain from it. A DRO is only suitable for less than £50 surplus after bills and rent and food ect. So if you think this is you then one of the debt charities will put it through for you.

Otherwise it’s bankruptcy with a 3 year IPA or a DMP.

Good luck with whatever you choose.

maxmycardagain

Clouds88 wrote: »

Depends on your circumstances, have you sought debt advice?

For example if you sell the car at 11k, you still owe the insurance 3 K

Sorry, what £3k insurance?

maxmycardagain

My mate had an IVA and was paying £120/week in but only £20/week was coming off his debts AND he was as badly credit-referenced as for a BR.........

Craig1981

maxmycardagain wrote: »

My mate had an IVA and was paying £120/week in but only £20/week was coming off his debts AND he was as badly credit-referenced as for a BR.........

that would be for the 1st year while solicitors fees are being paid - standard practice for an IVA. costs are paid first as per the IVA order...

fatbelly

The cheapest way to get out of a hp agreement is usually to do a voluntary termination under the consumer credit act

https://www.nationaldebtline.org/EW/sampleletters/Pages/Terminate-a-hire-purchase-agreement-%28sole-name%29.aspx

The income surplus criterion may be a problem for a dro if you have been able to service an 18k hp agreement but obviously your intermediary will advise you.

maxmycardagain

fatbelly wrote: »

The cheapest way to get out of a hp agreement is usually to do a voluntary termination under the consumer credit act

https://www.nationaldebtline.org/EW/sampleletters/Pages/Terminate-a-hire-purchase-agreement-%28sole-name%29.aspx

The income surplus criterion may be a problem for a dro if you have been able to service an 18k hp agreement but obviously your intermediary will advise you.

A "VT" normally requires ive paid 50% of the initial debt. i wonder what the calculation of "Section 100 of the Consumer Credit Act 1974" would be, it says id owe them, id hope only what the balance is after the disposal of the returned vehicle at auction.

Just checked someones Audi A6 (repo), it sold for £500 MORE then the WBAC valuation. - £11500

WBAC offer £11775 on mine, if it made £10500 at auction id be a happy bunny


Ive paid the monthly amounts but any DRO will be 6 months down the line and i intend retiring....

fatbelly

You can VT at any time.

There is a sample calculation here

https://www.nationaldebtline.org/EW/factsheets/Pages/hire-purchase-debt/hire-purchase-and-conditional-sale.aspx

maxmycardagain

So does a DRO not appear on the London Gazette like a full BR?

fatbelly

maxmycardagain wrote: »

So does a DRO not appear on the London Gazette like a full BR?

I've never been asked that before. I don't think they do.

maxmycardagain

fatbelly wrote: »

I've never been asked that before. I don't think they do.

worth the effort (and fee savings) if they dont