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DRO Questions

I am set on going for a DRO but just have a couple of questions:

1) How deeply do they look into how the debt was accumulated? I don’t have detailed record of it and also there are unnecessary things put onto credit cards (house improvements, clothes, leisure activities etc)

2) How recent does debt have to be to be questioned? I refinanced things about 5 months ago and took out a new loan and CC…..it was a good idea at the time but things have spiralled again due to cost of living 

I’m quite apprehensive about it all! 

Comments

  • Sonic101
    Sonic101 Posts: 151 Forumite
    Tenth Anniversary 100 Posts Combo Breaker Name Dropper
    1) I wouldn’t worry too much about spending money on ‘unnecessary things’. Home improvements and clothes are necessary, but you should speak to a reputable debt advisory service - such as National Debtline, the CAB or StepChange -  about this. 

    2) if you took the debt out five months ago and have been paying it there shouldn’t been a problem - it would only be a problem if you took the debts on then stopped paying immediately, as that could look like taking out credit knowing your couldn’t pay it back, which could be seen as fraud.
    But again, you need to speak to a debt advisor about this - assuming you qualify for a DRO they may advise holding off applying for a DRO for a few months to be on the safe side.  
  • sourcrates
    sourcrates Posts: 29,856 Ambassador
    Debt-free and Proud! I've been Money Tipped! Part of the Furniture Post of the Month

    DRO`s are set up by a specialist DRO intermediary, how the debt was accrued is not that important, (as long as it was by legal means), the intermediary will work through your debts, your income and expenditure, and your personal circumstances, assuming you meet the criteria, they will prepare the paperwork for you, all you have to do is sign and return it, then pay your £90 quid.

    The intermediary does everything else for you, including submission to the insolvency service.

    An application is not/will not, be submitted if there are any doubts as to whether it will be accepted.

    No need to be apprehensive, try not to overthink things, do you meet all the criteria for a DRO ?
    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-letter
  • Thanks! I probably am overthinking things, I just like to try and get things straight I’m my head before I go ahead with something! I do meet the criteria for a DRO but need to get a few balances sorted first (HMRC)

    It’s good to know that its not just a ‘now or never’ situation if something isn’t quite clear, it sounds like they will advise you to wait until the situation changes suitably 
  • sourcrates
    sourcrates Posts: 29,856 Ambassador
    Debt-free and Proud! I've been Money Tipped! Part of the Furniture Post of the Month
    DRO`s can be tricky things, as the acceptance criteria mainly rests on whether you have £75 or less disposable income or not.

    Now no ones budget is exactly the same, month in, month out, especially if you have a fluctuating income, so average figures tend to be used to calculate these things, in essence your budget only has to come together for DRO purposes, at the time of application, as that is the time that matters.

    And as long as those figures don`t differ that much over the 12 months, you won`t need to inform the IS of any changes.

    It is all self reported by the way, you are not checked up on once your DRO is confirmed.

    So take your time, get your figures together, your budget worked out etc, don`t worry about your creditors, collection activity takes forever, the only thing that is checked up on is your income, your expenditure is not.
    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-letter
  • MalMonroe
    MalMonroe Posts: 5,783 Forumite
    Ninth Anniversary 1,000 Posts Combo Breaker Photogenic
    Hi, the info in the following link might be helpful -

    https://www.gov.uk/government/publications/getting-a-debt-relief-order/getting-a-debt-relief-order

    For an intermediary you could contact one of the agencies at the end of sourcrates' signature, above. I used StepChange, who couldn't have been more professional and they were not at all judgemental.

    I applied for my DRO eight years ago and found it quite a scary thing but looking back, it was the best thing I could have done, given my circumstances at that time. 

    Good luck - although I'm sure you will be fine. 
    Please note - taken from the Forum Rules and amended for my own personal use (with thanks) : It is up to you to investigate, check, double-check and check yet again before you make any decisions or take any action based on any information you glean from any of my posts. Although I do carry out careful research before posting and never intend to mislead or supply out-of-date or incorrect information, please do not rely 100% on what you are reading. Verify everything in order to protect yourself as you are responsible for any action you consequently take.
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