DRO advice

loopyloo2022

Apologies for another post ,I did write this as a comment but not sure how this forum works so wasn’t sure if it would get seen .so sorry if this is incorrect me posting again…
so ..

have removed my overdraft.
it is not possible for me to save any money each month as I am
already in minus .

I’m a bit confused by the replies here as it does state you are allowed up to £500 credit whilst in a DRO without telling them about it .but I’ve removed it now.
So if I was to say be able to get a credit card for £300 that would be allowed in part of the conditions?(I do not want credit ever again but I am just trying to understand this all for if I have a emergency over the next year.
my DRO was submitted yesterday so 🤞🤞
the £650 cost of living payment because I am on universal credit do I need to worry about receiving that?and the £400 energy payment?do I need to let them know?
(This is going on my electric bill as I am -£300 already!)

Sonic101

Hi there

First things first - to make things simpler I would suggest that you stick to commenting in one thread, rather than starting a new post each time.

As explained, the rule is that if you are in a DRO you may not apply for credit of more than £500 credit without informing the lender that you are insolvent. This does not mean that are automatically "allowed" credit of up to £500 if you are in a DRO, it simply means that you may APPLY for credit up to the limit of £500 without letting the leader that you're in a DRO. As you have to be fair to all your creditors, and all credit debts need to be included in a DRO, you cannot "keep" your overdraft facility. 

As also explained, you can certainly apply for credit, but the chances of being accepted - at least by any reputable lender - are very low, to say the lease. 

Don't worry about the cost of living payment and energy payment - ignore these.

You should be fine and I am sure you will receive confirmation that your DRO has been accepted soon. 

sourcrates

Sonic clarifies things nicely above; you really need to read the actual guidance in order to understand it.

A DRO, much like an IVA, is a form of insolvency, the arrangement will show on your credit file from the date it is granted, and stay there for 6 years, so it will be visible to anyone who performs a credit check on you, so no one will loan you anything when you have an active DRO, as you will massively fail the credit check, it`s that simple.

All the guidance says is you must inform a creditor of your DRO if you apply for credit over £500, you won`t have to anyway as they will know from the credit check, and you will be declined anyway, you cannot have credit because all applications will be declined due to your DRO.

Ideally your emergency fund should have been arranged prior to entering insolvency, by withholding creditor payments, as it is permitted under the £2000 asset rules, however you will hopefully be able to use the cost-of-living payments instead.

loopyloo2022

Hi.
My DRO got approved today!such a relief
I have sent a message to my bank to ask them to remove my overdraft ..will they find out I am in a DRO and take it away anyway ?will they change my bank account at all do you know (I am on a basic account anyway and have no debts with my bank and it isn’t connected to my DRO in anyway.Just wondering if they will find out about the DRO.
As I am in minus figures anyway with my income and expenditure ,if I get a payrise I. April it will only be around £15 (that’s all it ever is ) and the little bit of universal credit j get may increase by £20 maximum each month ,will I need to inform the offical receiver ?
thanks again guys sorry for questions 

RAS

Once the DRO is agreed, there is no check-up. If your excess is less than £75, accounting for any increases in living cots, there's no need to contact anyone.

loopyloo2022

Thank yoi for the above !I didn’t want to break any rules as it says in the thing they sent me today to let them know of any increases to income !

fatbelly

Well done, loopyloo. I'm sure you'll be fine

MalMonroe

loopyloo2022 said:

Thank yoi for the above !I didn’t want to break any rules as it says in the thing they sent me today to let them know of any increases to income !

Hi, well done on being granted a DRO. 

I had one a few years ago and it really helped me to turn my life around so that I am now debt-free. Not wealthy of course but not in debt. 

Did you have a debt help agency's assistance? 

If not, here is some information/common questions about DROs from one of them, StepChange, that I hope will be helpful -

https://www.stepchange.org/search-results.aspx?search=DRO

StepChange really helped me and I can't recommend them highly enough. There's also Citizens Advice and National Debtline. They're all free to contact and their advice is also free. 

I realise that you're over the (major) hurdle of applying - that really is good news - and being accepted but it doesn't hurt just to have some extra information.

And if you just need further help along the way, it's free to contact the other debt help agencies, of course.