Whats the difference between a dro and bankruptcy

Bruiser2018

Hi I'm wondering if anybody could help after speaking with national debtline they recommend andebt relief order however with stepchange recommend a debt management plan but PayPal recommend bankruptcy only 
PayPal are saying this is based on me making payments against my car on hp and that isn't allowed om a dro bit it is on bankruptcy im so confused 

And need to take action fast any help greatly appreciated 

liggerz87

Debt relief order dro the limit is having 20k debt or less car value no more than than 1k and no assets more than 1k and must have surplus income of 50 pound a month and can't be a home owner all debts would need to included on the paperwork there's word of increases for a dro in may the car part stays the same debt at the end of the 12 months are then wiped and also there a 90 fee

Bankruptcy all debts weather you remembered or not are included that's why they call it so nuclear bankruptcy fee is 680 best to open a basic bank account as if it's current account the bank will close the account after 12 months the debts no longer owed but if you have surplus income you can end up paying an IPA for up to 3 years 

MalMonroe

Hi, this is what StepChange says about car ownership and bankruptcy - 

https://www.stepchange.org/debt-info/bankruptcy-and-my-car.aspx

For me, StepChange was the agency I would always recommend because they helped me so much when I was in great financial difficulty. 

It really does depend how large your debt is. If StepChange have suggested a DMP then I would seriously consider that instead of going for a DRO or bankruptcy, since they appear to believe that you will be able to manage it. I had a DRO some years ago but at that time I was in a desperate situation. 

Why not just double-check with StepChange, tell them what other things have been suggested to you and discuss with them why they prefer to recommend a DMP instead of DRO or bankruptcy. Don't be afraid to ask questions - those people are there to help you, not to judge in any way.

Read through all the information on the StepChange site, too. I would definitely advise not to jump into a solution too quickly. After all, as in my case, it took years to build up my debt, you can just hang on until you have found the best solution for you. 

Good luck! But once you have decided which path to take, I'm sure you'll be fine. Just don't be afraid to ask as many questions as you need to because this is your (financial) life. 

fatbelly

Bruiser2018 said:

Hi I'm wondering if anybody could help after speaking with national debtline they recommend andebt relief order however with stepchange recommend a debt management plan but PayPal recommend bankruptcy only 
PayPal are saying this is based on me making payments against my car on hp and that isn't allowed om a dro bit it is on bankruptcy im so confused 

And need to take action fast any help greatly appreciated 

So the issue is that ND recommended a DRO, Stepchaange a dmp and Payplan bankruptcy

Confusing, huh?

If you want to post a statement of affairs we would probably side with one of those three.

It's not correct to say that you cannot pay for an HP car in a DRO. However for it to be an allowable expense it would have to be

• essential for your needs
• valued at less than £1000
• not in arrears

and if the agreement completes during the moratorium your situation would be looked at again to see if you were still within the asset and surplus income limits

Bruiser2018

Hi thanks so much for all the replies im just formulating a soa now to post in here.
After speaking to stepchange again they also have recommended either a debt relief order or bankruptcy what worries me is what if I forget about a debt say it wasn't on my credit report but I recieved a letter after the debt relief order has started, as it stands im desperate my local authority are pursuing me with bailiffs for council tax for 2.7k and wont accept a payment plan,
Im mortified im posting this here but I need to sort this out and swallow my pride I have 10k unsecured debt on the credit card 2 payday loans 2 catalogues and 1 phone contract the rest is a energy supplier water bill and council tax 2 ccjw 1 for the water and the other I have no idea as the paperwork went to an old property I don't own anything even my car has 9k owed on it however that is up to date I have zero savings or family to ask for help from,

Im worried about the car as I have 5 kids and I work for the nhs in the community and at various hospitals ao no car equals no job but i can't afford to even buy a 300 quid car if I lose my car through a dro or bankruptcy im in a right. Mess and just cant see a way out of this or to solve this.

sourcrates

I would suggest you take a moment to think things through.

Never make such important financial decisions in haste, the debts, bailiffs, etc will wait, you simply keep your door locked and refuse them entry.

You need to make an informed decision on the best way forwards, never make these choices in a state of panic, it can all be sorted out, and the recovery action can be paused whilst you choose what to do, but never do this kind of thing in a blind panic.

Breathing space is a new scheme that gives you temporary protection from debt collection, I suggest you take advantage of this when it launches, then make your choices moving forwards -

Breathing Space: Citizens Advice debt experts explain what you need to know - Citizens Advice

fatbelly

Sourcrates is right - Breathing Space comes in as a formal legal system on Tuesday. We have had it confirmed that it goes live at 8 am.

Whether it will all work is a different question.

But it does give 6o days protection against enforcement while you decide on a strategy.

Here's another factsheet

https://www.nationaldebtline.org/fact-sheet-library/breathing-space-ew/