We'd like to remind Forumites to please avoid political debate on the Forum... Read More »
We're aware that some users are experiencing technical issues which the team are working to resolve. See the Community Noticeboard for more info. Thank you for your patience.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Questions regarding my debt options and potential DRO
Options

MrHappySad
Posts: 3 Newbie
in IVA & DRO
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!
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!
0
Comments
-
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.I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter0 -
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 option0
This discussion has been closed.
Confirm your email address to Create Threads and Reply

Categories
- All Categories
- 351K Banking & Borrowing
- 253.1K Reduce Debt & Boost Income
- 453.6K Spending & Discounts
- 244K Work, Benefits & Business
- 598.9K Mortgages, Homes & Bills
- 176.9K Life & Family
- 257.3K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.6K Read-Only Boards