Questions regarding my debt options and potential DRO 29 December 2019 at 1:27PM edited 30 November -1 at 1:00AM in IVA & DRO 2 replies 845 views

MrHappySad

Hi everyone,

So I've racked up a small amount of debt (though sizeable to me when considering my circumstances) of over £3K across two credit cards, an overdraft and other things.

Currently I'm unemployed and have been for a while but am receiving some universal credit. The main reason for not working is my long-standing MH problems, a symptom of which is impulsivity (you can begin to see how I've racked up debt)

My mother and I have recently been evicted from our last property and those landlords are taking us to court in January for a money order to collect what they feel is owed. The money order if granted will most likely be against both of us. Neither my mum or I can afford the money order and I worked out that this + my 3K debt will come to over £19K (if the MO defaults to me) which is beyond words for a guy in his early 20's who has had a rough time of things.

I was thinking of speaking to CAB, StepChange or National Debtline about my options. I've had a look myself and I feel a DRO would be the best in my situation as I fit their criteria. Though I'd still have a black mark on my credit file by age 27 by the time it's all done with but I guess it's the lesser of three evils.

I've looked into basic bank accounts and thought either Nationwide, Barclays or TSB would be the best for me. Any thoughts on these? Can money orders be included in DROs? Should I open a new account before starting a potential DRO?

Lastly which debt advice charity is the most sympathetic, in your experience, towards people with MH problems?

Thank you!

sourcrates

Hi,

When you say money order, am i to understand you mean a county court judgement for non payment of rent ?
If thats the case, a debt for unpaid rent can be included in a DRO, but the limit is a strict 20k, would you meet the rest of the DRO criteria ?


The basic bank account providers you have listed are good options, a DRO must be applied for through an intermediary, such as CAB or Stepchange, all will have policy on dealing with mental health issues.

fatbelly

Any bank account not connected to your other debts would be OK.

I presume the tenancy with the rent arrears was a joint tenancy between you and your mum.

Your liability would be dealt with by the DRO. What is mum going to do?

If you have a good CAB locally, with debt advisers who are approved intermediaries, then that would be a good option