DIY breathing space?

Dirtypunk76

Can I basically do a DIY breathing space for about 30 days by writing to my creditors (not utilities or rent) and telling them I'm in financial trouble, I'm talking to StepChange, and will be paying £1 a month in the meantime?

I basically just want to buy a little time while waiting for the DRO (have applied but waiting to hear from StepChange)

Dirtypunk76

Partly I'm not sure if I qualify for breathing space (not in any arrears), and also I'm just a bit paranoid about who they tell. 

MalMonroe

Hi, when I applied for a DRO with StepChange, it was the Official Receiver who wrote to me to let me know that my application had been accepted, not StepChange. And it didn't take 30 days.

If I were you, I wouldn't now contact any creditors, since the DRO application process has begun. You are already buying time and soon (assuming your application is accepted) you will have 12 months to pull things together.

My advice would be please don't panic but sit tight and wait to hear about your application. Your creditors will find out soon enough what is happening with your financial matters and you'll eventually be able to (if anything like me) breathe properly and sleep at night again.

If you do have any queries at all, though, don't hesitate to get in touch with StepChange again because that's what they are there for and I found their help and advice invaluable. They really don't mind answering your questions and putting your mind at ease. 

Good luck - the hard part is over now, though - the application is in.

PS Your creditors won't 'tell' anybody. But they will record things on your credit reports. Your credit history is on all your credit reports held by agencies such as Experian, Equifax and TransUnion. If and when your DRO is approved, that will be on there, too. So although your credit reports will be rubbish for a while (DRO stays there for six years in total), it's worth it if it helps you to get out of great debt. I'm now debt-free thanks to my DRO.

sourcrates

Quote - "Can I basically do a DIY breathing space for about 30 days by writing to my creditors (not utilities or rent) and telling them I'm in financial trouble"

Yes, it`s called non-payment, and it`s very easy to do, you just don`t pay anything towards your non-essential debts.

You don`t need to pay anything or do anything about your creditors while your DRO application is being processed, what is it you think they will do in the meantime anyway?

Debt collection can take many months or even years to accomplish, the legal process can also take many weeks/months to kick into gear, and usually only happens with debts that have long since defaulted and been sold on, and I`m guessing that does not describe your situation.

So, don`t worry about breathing space, just carry on as normal, nothing is going to happen.

If any of your creditors contact you, simply tell them you are in financial trouble, you are applying for a DRO, and that the insolvency service will write to them once it is processed.

Thats it.

Dirtypunk76

Thanks both for your replies, it really is helpful. 

Yes I guess you're right, I don't really know what I think is going to happen.