DRO now or later? - rebuilding life
jodiewodie
Forumite 
Good afternoon all,
Urgent advice please 
BACKSTORY: Relationship break down - I break down - I lose job - I have 17k debts – I am moving out to a rented flat ‘somewhere’ and applying for benefits…….
I have roughtly 17k of debts (c cards, pp etc)… my debts cost me roughly £400 a month to make minimum repayments 
I have paid up until now but as of next month I would be failing on them all. (So effectively they are ‘late’ but not yet ‘missed’).
I am going to eventually apply for a DRO but been holding off... I don't know when is the best time to do it!!???? 
I have no clue with this kind of thing, my ex was my 'safety net' and I am quite naive. All I know is in the future my mental health won't allow me to work for a while so there is no way I will be able to make any payments at all on benefits.
I also have to think of the impact the DRO will have on my rebuilding my life, it’s going to be so tough 
What impact does a DRO have on things like broadband / essentials?? Any? Or even Sky? (I won’t be getting that, can’t afford it, just curious).
MANY thanks in advance, J x
Replies
Well, for the average bod in the street, not much really, I have been insolvent twice in my life, both times due to life events, an IVA the first time, a DRO the second, nothing much changed to be honest, terrible credit file yes, so if your renting you may need to sort that first, apart from that, no problems whatsoever with anything else, life, as they say, goes on.
Your credit file is marked for 6 years, after which its a fresh start, I would not describe it as tough, it can be difficult, especially re- the renting situation, but if you don`t want to take further credit, the effects are minimal to say the least.
There are a lot of misconceptions out there, even with Bankruptcy, as long as its a simple case, and you are just an average bod, then life goes on pretty much as per normal, the same applies to most insolvencies.
The worst type of insolvency, in my view, is an IVA, as it lasts up to 6 years, and your budget is constantly checked up on, now that can be a nightmare, a DRO in comparison, is a doddle to do.
More than a third of IVA`s fail....fact.
Could A Debt Relief Order help you ?
Never pay a fee for a Debt Management Plan.
For free non-judgemental debt advice, contact either : Stepchange, National Debtline, or CitizensAdviceBureaux.
Thanks to an ad I saw on TV around the time of my nervous breakdown for CCCS (now StepChange) I had a DRO which started 8 years ago, now all cleared off my credit reports.
I feel that StepChange saved my life. Certainly saved my sanity. Link here - https://www.stepchange.org/
It's a free service and they say, 'we can help you get back on track' and they really can. Also, though, you are under no obligation.
I phoned them when I was at the end of my tether and spoke to a lovely advisor who asked me about my incomings and outgoings (you may want to make a list of those before speaking to someone) and she listened to me and then advised a DRO. She told me what I needed to do and said that StepChange could submit it for me. I was worried that it may not be accepted but when StepChange (or one of the other free debt help agencies) helps you, it is more likely to be accepted. After I'd spoken to my advisor I realised that there was a way out and although it's not always easy, it's not that tough.
The best time to do it is NOW. Get started and then you will be finished sooner. I agree with Sourcrates, a DRO will not impact your life half as much as you think it will. Having a DRO taught me to budget sensibly and to check my bank account balance regularly, things I'd never bothered with before.
Many people on this forum have been in similar circumstances to yours and we have all survived. You can too.
You can still have broadband - just include it in your outgoings.
You can do this - there is help out there.
Yes, I feel so hopeless. I have done for weeks. All I do is cry like an idiot.
I stay up all night searching for housing, with no luck, especially in my situation.
I will definitely call them tomorrow, they are closed today.
My incomings and outgoings and easy... in = 0, out = £400+ presumably a month
This just doesn't feel survivable, although, like you've said people do it!
xxx
I'm going to be a bit brutal because I think you've got so much going on that you struggle to see your way out. And you can't afford mistakes.
I'm going to slightly contradict MalMonroe, although I think you need a DRO as soon as is sensible.
Having read your other thread, sensible right now is to get your priorities straight. A DRO can wait until you have a secure roof over your head. Your debts will still be there as will the DRO.
You need to find out how much rent you can afford by checking here Local Housing Allowance - GOV.UK (www.gov.uk) You may find that some areas close to you have different rates, which will be reflected in the cost of rent.
You cannot afford to rent anything that costs more than the LHA for the area, as UC is very limited anyway, so you cannot afford to top-up the rent
You need to speak to the Homeless/Housing department tomorrow if they are open, or Wednesday. They will probably have a list of private landlords who will consider tenants on UC or out of work.
I know you don't want a hostel or B&B, but unless you are over 35 years old, you will only be allowed the local rent for a room in a shared house or lodgings, even if you've got a studio or flat.
The problem with a studio or flat is that you then have to pay some Council Tax, all the water rates and things like the standing charges for utilities. Given your likely finances those need to be split between more than one person if you are to cope. SO it probably shared accommodation of some sort. It may be pretty horrid but you should be able to move out within 6 months.
Alternatively, do you have any family or friends with whom you can lodge?
If you are going to find your rent in advance and a deposit, you may well have to put some part of it on credit if you can.
In the immediate term you need to check whether you have any debts with the bank group where your £400 is stashed (ask Stepchange if you need help finding out).
If you have then they can off-set the £400 against the debt so you need a new account before you default with them and you need to get that £400 and any anything else you receive into the new account. A lot of people here use Monzo which can be set up on-line in a couple of days, before you start to default you other accounts. So do that tonight.
And get the UC application in now.
Do you have any idea how long your ex will allow you to stay at his place?
Do you have a friend with whom he is OK who can help you de-clutter? So you can sell stuff on ebay, car-boot whatever? Another £200 would not go amiss at the moment.
Wishing you all the best for the future.