Debt Relief Order situation help please

sourcrates

You need to sort out in your head what your priorities actually are here, you say you haven`t yet defaulted or even missed a payment on your debts,  people who go insolvent usually have a history of late or missed payments, and/or defaults, where they have tried to continue with minimum payments, but its just got too much for them.

Then here you are contemplating taking out a joint mortgage on the one hand, or a DRO on the other, your reasoning makes no sense at all to me, you really should sort your debt out first, then think about your future, I have experience of both DRO and IVA, and neither option is to be taken lightly, if your debt repayments are more than you can afford, which they must be for you to even contemplate a Debt Relief Order, then you would be foolish to take on a mortgage as well.

Malarky21

I am only up to date with payments because I've been using my credit cards to get through until the next pay day, otherwise I would miss payments and default. Doing that is obviously increasing my debt which is why i'm now trying to sort it out. I repeat, I do not intend on taking on a mortgage were I to do a Debt Relief Order.

sourcrates

Malarky21 said:

I am only up to date with payments because I've been using my credit cards to get through until the next pay day, otherwise I would miss payments and default. Doing that is obviously increasing my debt which is why i'm now trying to sort it out. I repeat, I do not intend on taking on a mortgage were I to do a Debt Relief Order.

Well then make that your priority, and get the ball rolling with the DRO, as it can take a few weeks to set up.

The process is this :

You contact an intermediary, such as stepchange, they will work through your budget, and see if a DRO is appropriate for you.
If it is, you fill in the forms they send you, and return them.

They will process your application, you need to contact each creditor to find the exact amount you owe each one, you will also need copies of your credit reports from all 3 major providers.

Once processed, you will receive a letter with a bar code to pay the £90 fee, you must also submit your final debt balances.
Your application will not be submitted unless the intermediary is satisfied it will be approved, once submitted, its virtually guaranteed to be approved, as long as you have told the truth.

During the 12 month moratorium period, you are responsible for informing the IS of any changes that may affect your DRO, as i said, you are not under any scrutiny at all, occasionally a random check may be made on you, but they cannot check everyone, so its important to play by the rules, if you do break the rules, then a restrictions order may be sort, or in the worst cases, your DRO may be terminated.

Good luck with whatever you choose to do.

Galloglass

You contact an intermediary, such as stepchange, they will work through your budget, and see if a DRO is appropriate for you. If it is, you fill in the forms they send you, and return them.

I am not aware of Stepchange offering DRO's but I'd second the idea of running the numbers past them. If there is not enough for a DMP or an IVA, you'll be signposted to an intermediary. 

sourcrates

Galloglass said:

You contact an intermediary, such as stepchange, they will work through your budget, and see if a DRO is appropriate for you. If it is, you fill in the forms they send you, and return them.

I am not aware of Stepchange offering DRO's but I'd second the idea of running the numbers past them. If there is not enough for a DMP or an IVA, you'll be signposted to an intermediary. 

Stepchange are the main intermediary provider for Debt Relief Orders, along with CAB.

https://www.stepchange.org/how-we-help/debt-relief-order.aspx?channel=ppc&&WT.srch=1&gclid=EAIaIQobChMI_aGh3KPg5wIVibTtCh29XwRHEAAYAyAAEgKMX_D_BwE&gclsrc=aw.ds

Malarky21

Thank you for taking the time to help. Are Step Change the best people to act as intermediaries? I had heard that National Debt line do this too? 

Galloglass

All DRO Intermediaries work under FCA rules so you will get the same answer whoever you use.

sus00k64

I had a DRO last October which for me worked out really well as I ended up unemployed which secured the DRO, Downside I was a Director of a Limited Company even though I had yet to start the business.  My question is after the year is up.  Can I go back to being a Director or should I just be a Sole Trader.  Please I really could do with some advice

sourcrates

sus00k64 said:

I had a DRO last October which for me worked out really well as I ended up unemployed which secured the DRO, Downside I was a Director of a Limited Company even though I had yet to start the business.  My question is after the year is up.  Can I go back to being a Director or should I just be a Sole Trader.  Please I really could do with some advice

You are free to do whatever you like after discharge.