Checks during DRO application & process

RAS

Stepchange used to offer DROs in house.

They stopped very recently on cost grounds. You should now get in touch with CAB, or Christians Against Poverty if they operate in your area. The Stepchange decision means there is more pressure on these providers, so expect a bit of a wait.

A large number of people doing DROs live with spouses, partners, parents or children. That is not a problem. It wouldn't even be a problem with bankruptcy.

If you meet the basic criteria for a DRO, you will provide the required information to the intermediary at CAB or CAP. Since you are paralysed by fear about your situation, explicitly tell your intermediary about it, in writing if you want.

If your intermediary has any doubts, they will ask further questions. If they aren't happy more questions and if they decide there is a problem they simply won't forward your application.

If your intermediary still accepts your situation, then your application will be forwarded to the Insolvency Service. To put it bluntly, you pay £90 for a DRO. How many hours scrutiny does that buy?

No-one at the IS is going to scrutinise you application in detail, they just want to check you haven't had another DRO within 6 years and the form is filled in correctly. It's the intermediary's job to get that right.

You will have several uncomfortable weeks waiting for sign off; it's been taking upto 4 weeks. But all that will be in your head. 

And if you are one of the fraction of a percentage who's application is rejected, that's it. No investigation. Just you can't reapply for 6 years.

sourcrates

You shouldn`t have any fear about the process, its very straightforward, the scenarios you are agonising over just do not exist.

Once you have applied via your chosen debt advisor, you have a telephone interview with an intermediary, they take your details, details of your debts, your budget, income/expenditure, just to confirm you meet the £75 disposable income limit, and that you meet all other qualifying criteria as well.

They then process your application to make sure all is good, you then get a copy of it either by email or in the post, and you sign off on it, and pay your £90.

This is then sent to the IS for approval, tick box/ tick box/ tick box  approved, that`s it, you will get a letter confirming your DRO is active.

No fear, no stress, no need to panic, all very civilised, 12 months later you are discharged from your debts and life goes on.

2socks3023

RAS said:

But all that will be in your head. 

Tell me about it lol

I am pretty certain I'm overthinking, and overanalysing, and everything is infused with fear & anxiety...but knowing that and being able to stop it are two very different things

MalMonroe

Hi, I just wanted to echo all the really great advice already given here. 

I have had a DRO and I was helped to get it by one of the intermediaries - namely StepChange - no longer authorised but Citizens Advice are an intermediary, as has been mentioned.

Having had a DRO myself, I recognise all of your fears and I can tell you that mine were all unfounded. The intermediary will not let you submit something that will land you in trouble. And you can't submit an application yourself, it has to go through an intermediary.

I had to pay the £90 fee in three separate instalments - because I couldn't afford to pay the lump sum of £90 outright and was far too ashamed and embarrassed to ask anyone to lend it to me - before it could even be submitted for consideration and I didn't find it a speedy process but then again, it wasn't a speedy process for me to get into debt in the first place. It wasn't a quick fix either but for me, it has been a permanent fix. It wasn't just obtaining the DRO - it was the learning how to budget afterwards as well. I am now debt-free and had a similar amount of debt as you.

It can be a worrying time but if you can just relax, take a few deep breaths and tell yourself everything will be just fine, then you can start to think clearly. You are on the road to recovery, look at it that way.

Lean heavily on the experts who can help you. Ask them all the questions you need to ask, go back to StepChange and ask them if need be. Ask them about an intermediary. As we know, they can't submit your application but they can help you with any worries, fears and questions. Their advice is free and I found it very helpful and comforting. I phoned them more than once - it wasn't a problem.

Don't be afraid. Having a DRO was obviously never something I had planned but it really helped me so much, in so many different ways.

If you are in a DRO arrangement and your circumstances change - that is, your financial situation improves - you have to contact the Official Receiver and they will advise you further. But you should be told that, anyway. It isn't fraud as long as you are honest.

I wish you all the very best but please try to trust what the experts - and people here - are telling you. 

2socks3023

sourcrates said:

You shouldn`t have any fear about the process, its very straightforward, the scenarios you are agonising over just do not exist.

It's less about the DRO process...  More about the background fear of falling foul of my profession's Fitness to Practice process

The fear of that lives in a similar place to the Childcatcher from the ancient Chitty Chitty Bang Bang film, or Freddy Kruger, or those twins in the corridor in the Shining film

Even an investigation that ends in no case to answer is lengthy and traumatising

The fact that I know virtually nothing about the DRO process (+ the complications in my life + a childish feeling that I've done something wrong by getting into debt) just triggers fears around that.

That, plus the fact that I'm sort of in limbo for a few days. Step Change have advised a DRO, but have further advised that I firstly need to seek advice from my union in rexpect of whether a DRO would impact on my future employment.  I've asked the question, and am awaiting their response. Step Change took the view that a DRO is relevant for some professions, but not others...but they weren't certain about mine.

I have huge gratitude for the people that have replied to my post btw. I now have a lot more knowledge now than I did yesterday. ANd have been reassured significantly.

RAS

A random thought as I was involved in the area.

Your primary fear relates to your profession? Presumably you are registered with the HCPC or similar? And in the relevant union or similar?

Could you contact your union and speak to either a welfare or professional standards advisor? Explain your situation. If they need further advice, they may be able to make a whatif/anonymous enquiry to your professional standards body?

2socks3023

RAS said:

A random thought as I was involved in the area.

Your primary fear relates to your profession? Presumably you are registered with the HCPC or similar? And in the relevant union or similar?

Could you contact your union and speak to either a welfare or professional standards advisor? Explain your situation. If they need further advice, they may be able to make a whatif/anonymous enquiry to your professional standards body?

It's along those lines yes.

I've asked the question to my union, and I'm waiting for their response at the mo.

fatbelly

RAS said:

And if you are one of the fraction of a percentage who's application is rejected, that's it. No investigation. Just you can't reapply for 6 years.

There was a rule change on that. You can now re-apply as soon as you do meet the qualifying criteria

RAS

fatbelly said:

RAS said:

And if you are one of the fraction of a percentage who's application is rejected, that's it. No investigation. Just you can't reapply for 6 years.

There was a rule change on that. You can now re-apply as soon as you do meet the qualifying criteria

Good to hear, as with the cost of living increases there must be people who were marginally ineligible last year and are now well within the parameters.