Cancelling IVA and moving to DRO

ExperHR

Hi Everyone, 

So, I'm currently 12 months into an IVA. I'm renting with no assets and the debt was just under £30k.

I now meet the criteria for a DRO as my expenses have risen. 

Shall I take the plunge, fail my IVA and go for the DRO?

Has anyone done this?

Many thanks,

Alex.

yksi

Why have your expenses risen? (What kind are we talking about here.)

MalMonroe

ExperHR said:

Hi Everyone, 

So, I'm currently 12 months into an IVA. I'm renting with no assets and the debt was just under £30k.

I now meet the criteria for a DRO as my expenses have risen. 

Shall I take the plunge, fail my IVA and go for the DRO?

Has anyone done this?

Many thanks,

Alex.

Have you spoken to anyone at one of the free debt help agencies? Stepchange is the one I'd use as I have used them before and they helped me to get my DRO and were friendly, helpful and non-judgemental.  Just google it. They can help.

sourcrates

This is Debt Camels take on things -

New DRO rules - should I end my IVA and change to a DRO? · Debt Camel

ExperHR

sourcrates said:

This is Debt Camels take on things -

IVA has been cancelled - Varation meeting being held end of Jan.

Although I'm on £30k PA, I do qualify for a DRO - After Student loans etc, I earn £1800 PM. My rent alone is £1175.00 per annum - says it all really.

Will keep you all updated.

sourcrates

ExperHR said:

sourcrates said:

This is Debt Camels take on things -

IVA has been cancelled - Varation meeting being held end of Jan.

Although I'm on £30k PA, I do qualify for a DRO - After Student loans etc, I earn £1800 PM. My rent alone is £1175.00 per annum - says it all really.

Will keep you all updated.

Your on 30k a year, yet you have less than £75 per month disposable income ? ........incredible.

ExperHR

sourcrates said:

ExperHR said:

sourcrates said:

This is Debt Camels take on things -

IVA has been cancelled - Varation meeting being held end of Jan.

Although I'm on £30k PA, I do qualify for a DRO - After Student loans etc, I earn £1800 PM. My rent alone is £1175.00 per annum - says it all really.

Will keep you all updated.

Your on 30k a year, yet you have less than £75 per month disposable income ? ........incredible.

What makes you think that this isn't possible?

I earn after tax £1860 and my rent alone is £1175 PM.

Do the maths...

sourcrates

ExperHR said:

sourcrates said:

ExperHR said:

sourcrates said:

This is Debt Camels take on things -

IVA has been cancelled - Varation meeting being held end of Jan.

Although I'm on £30k PA, I do qualify for a DRO - After Student loans etc, I earn £1800 PM. My rent alone is £1175.00 per annum - says it all really.

Will keep you all updated.

Your on 30k a year, yet you have less than £75 per month disposable income ? ........incredible.

What makes you think that this isn't possible?

I earn after tax £1860 and my rent alone is £1175 PM.

Do the maths...

It was not a criticism, lets just say that those in your income bracket were not originally envisaged as been a suitable target market for a DRO.

They were originally designed for those in the lower income bracket that could not afford to repay their debts within a reasonable timescale.

Your rent is incredibly high, I'm assuming London or the south at the very least, up here in some parts of Yorkshire you can almost buy a house for that kind of money lol.

ExperHR

sourcrates said:

ExperHR said:

sourcrates said:

ExperHR said:

sourcrates said:

This is Debt Camels take on things -

IVA has been cancelled - Varation meeting being held end of Jan.

Although I'm on £30k PA, I do qualify for a DRO - After Student loans etc, I earn £1800 PM. My rent alone is £1175.00 per annum - says it all really.

Will keep you all updated.

Your on 30k a year, yet you have less than £75 per month disposable income ? ........incredible.

What makes you think that this isn't possible?

I earn after tax £1860 and my rent alone is £1175 PM.

Do the maths...

It was not a criticism, lets just say that those in your income bracket were not originally envisaged as been a suitable target market for a DRO.

They were originally designed for those in the lower income bracket that could not afford to repay their debts within a reasonable timescale.

Your rent is incredibly high, I'm assuming London or the south at the very least, up here in some parts of Yorkshire you can almost buy a house for that kind of money lol.

Yeah, I get that to be honest...

I live 15 minutes outside of London in quite an affluent area, in a small two bed cottage with my dog. 

Just to better prepare myself, what evidence do I need to provide to get the DRO up an running? i.e. bank statements, rental agreement etc?

Unfortunately, StepChange wont engage with me whilst I am bound by my IVA (which has since failed).

Kind regards,

sourcrates

You must meet all the qualifying criteria, the most important being your disposable income is less than £75 per month.

Can`t remember off the top of my head what documents are required, but you must know the outstanding balances on all your credit accounts, this is just to confirm your debt total is under the 30k threshold.

Your DRO advisor will help prepare your application, once that is done, it will be checked again, and submitted.

Fatbelly is a CAB DRO advisor, he may be better placed to answer this more fully.

Platespinner123

I'm not a DRO advisor but have worked with them - you'll need at least your Experian credit report and some agencies want Transunion & Experian as well. You can get these for free online on their websites; Experian takes a few days as they post you a code to then put on their website.

You can also use a service like CheckMyFile (use their free trial period, get the PDF, then cancel the subscription).

Get them when your IVA is cancelled as they'll need to be up to date when you apply for the DRO.

And yes, outstanding balances for any other debts & the current owner of the debt (if any have been sold), if possible confirmed in writing. Plus the last three months' bank statements.