Considering a DRO...

HI Guy's

So here's my story.. I am currently in debt by over £20,000 I have credit cards, a bounce back loan in my self-employed name and an overdraft. The debts are mainly for emergencies which have had happened over the last few years; car breaking down, business failing, holiday to see my Father in Canada who had a stroke, etc..

I have a few questions...

I have a car which is worth around £2000, if it's slightly more do you think they will let me keep it it?  As it depends where you search for this price? I've made a large purchase recently on my credit card to get implants done on my teeth because it was quite urgent as I had no teeth left to eat and I'm type 1 diabetic so recipe for disaster, NPI :-) That was purchased right before declaring the DRO, so do you think that would still be approved or should I leave it out? Would they except that this was a medical emergency or you think they would allow me to include it in my DRO application? is it better to pay for these things up front on a credit card or two pay an instalments?

When I make my budget would I be able to include things like my gym membership,  dating app as I'm single, counselling service for my mental health,  I go to a nice gym  which is £90 per month would they allow that or think oh no that's too much you should join a cheaper gym?  Is the budget up to myself what I include? What about tobacco? Does it depend on which insolvency person you get?

If my DRO is rejected for that reason would I be able to apply again and leave it out? Is your landlord informed of your DRO even if you do not put rent arrears through?

What do they consider a large purchase before a DRO which would cause a problem? As I owe a friend money and would like to pay him- how much cash could I withdraw, what's a reasonable figure?

Many thanks for your help!!


  • stu12345_2
    stu12345_2 Posts: 797
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    edited 18 October 2023 at 6:04AM
    you should post a statement of affairs so folk can see what exactly your bills outgoings and debts are.
    some things I think will need to go.the dating app.the expensive what about your rent your landlord could evict you for non payment
    as for teeth surely it will now be added to your credit card debt.

    pay your debt at your rate.not what the creditor demands.cos they have no power.they aren't the police.
  • fatbelly
    fatbelly Posts: 20,197
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    It doesn't sound that you have much understanding on how a DRO works.

    Have a read of this

    and maybe contact CAB so that you can have a chat with a debt adviser and work out what is the best strategy for you to deal with your debts
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