DRO advice

loopyloo2022 Forumite Posts: 7
First Post
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
    Sonic101 Forumite Posts: 150
    Ninth Anniversary 100 Posts Name Dropper Combo Breaker
    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
    sourcrates Forumite, Ambassador Posts: 27,657
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    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.
    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 [email protected]. 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
  • loopyloo2022
    loopyloo2022 Forumite Posts: 7
    First Post
    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
    RAS Forumite Posts: 31,928
    Part of the Furniture 10,000 Posts Name Dropper
    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.
    The person who has not made a mistake, has made nothing
  • loopyloo2022
    loopyloo2022 Forumite Posts: 7
    First Post
    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
    fatbelly Forumite Posts: 19,186
    Part of the Furniture 10,000 Posts Name Dropper Cashback Cashier
    Well done, loopyloo. I'm sure you'll be fine
  • MalMonroe
    MalMonroe Forumite Posts: 5,783
    Ninth Anniversary 1,000 Posts Name Dropper Photogenic
    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 -


    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.
    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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