DRO and council rent default query

ih8stress

fatbelly said:

Most people, I think, now pay for water on a metered basis. If so, there's no problem.

I'd like to think their advisor would help them with the fine issues. That used to be the case, and was why the Insolvency Service set them up the way they did.

But these days, most people seem to do them through one of the hubs -  Money Wellness or CA - and aftercare seems nonexistent.

I don't think they have got a water meter but would have to check.

Hopefully they have got a good Advisor.

Will update you all when I have any news, thank you for all your comments

Brie

Citizens Advice is non profit so won't be pushing for something to get a percentage.  

ih8stress

Quick update: 

Unfortunately the Advisor said NO about the DRO because the person has council house rent and water rate arrears.

I told them that I didn't think this should prevent it.

The Advisor had said it was something to do with the Council regulations.

The organisation is called 'Mums with debts'.

I have checked and they do not charge a fee but I don't know if they have any hidden agenda's?

This is all the information I have at the moment. I've tried looking on the relevant council website to find out about arrears and DRO's but it is a nightmare to navigate.

A proportion of the rent arrears are being paid with the regular rent payments but I don't know how much or how long they will take to clear.

I am thinking of advising them to try a different organisation - possibly Christians Against Poverty? who seemed to help another person on here recently.

fatbelly

Totally incorrect information. 

Your friend should complain here

https://register.fca.org.uk/s/firm?id=0010X00004Mk9c4QAB

As they are just a lead generator for an IVA firm they were not appropriate for her and could never do a DRO anyway.

Any of the other organisations already mentioned would be able to help.

stu12345_2

Christians against poverty have been the best source of help concerning my dro application, ( very professional and very sympathetic)better than money wellness,( grrrr 😠)better than citizens advice bureau.

here is a link for friend to open and read and at bottom she types in postcode to get in touch with local advisor to get the ball rolling.

 the local advisor will ask 2 key questions, does she own a house and has she had a dro in last 6 years, if no, then more details will be taken to see if she qualifies., then it's up to 3 fact finding meetings at a local centre or indeed at your home!)
 then they submit the dro application for you.

 get her to do it today!!
https://capuk.org/get-help/cap-debt-help/applying-for-a-debt-relief-order

this mums with debt as mentioned do not seem to be allowed to process dros but a lead generator and they can make £1000 commission for every IVA lead 

Christians against poverty can do DROs fully and they get all their income via donations, not a penny from any creditor, such as money wellness and step change get to help fund their charity

there are proposals to clean up this IVA pushing that is going on as it could turn out to be the next biggest miss selling scandal such as was with PPI pushing miss selling.

where only dro registered debt charities will be allowed to analyse if you qualify, no longer will be lead generators allowed 

stu12345_2

rent arrears must be included in a dro, as they are a qualifying  debt, but technically the landlord could still  evict you for the  arrears

council landlords are much more helpful , especially if it's a secure tenancy 

it is advised to repay arrears from the max £75 surplus dro limits a month,  whilst obviously making current normal rent payments as well.( like you already mentioned she is doing)

stu12345_2

here is an example ( the top one, in the 2 scenarios) concerning debts to landlord on a dro.
the rent arrears must not be included as a regular expense, but obviously current rent will.

so the tenant must pay the arrears from  their max £75 surplus a month , unless the council will be generous and write the arrears off.

ih8stress

Thank you @fatbelly and @stu12345_2

fatbelly, thank you for confirming my gut feeling to try someone else and your links.

stu, it was your threads about Christians against Poverty that I read about that made me want to suggest them to my family member. I have not had chance to read your examples yet (having to post and run) but will do later.

Thank you for the link. for CAP.

Unfortunately, I have put the postcode in and they don't have Advisors nearby:

"There are no debt centres in your area.

But don’t worry, there are other options available to you".

They suggest ones already suggested on here, such as Stepchange, PayPlan, Community Money Advice, National Debtline, Citizens Advice, The Money Helper.

Which of the Organisations would both of you suggest is their best option now?  I'm veering towards National Debtline maybe but don't know why?

Appreciate all the comments and help so far, thank you

stu12345_2

I'm.not sure national debtline do dros, or they then point you to other charities , ( something in back of mind tells me I contacted them who then told me to use money wellness)give them an initial call imo.and ask.
step change don't do dros anymore 
try citizens advice bureau. avoid money wellness.

sourcrates gave me a list of dro charities, even local debt groups links, that is how I eventually picked CAP, some of the local ones were debt help drop in centres that were not taking on any fresh clients sadly 


I will try and find the list he gave me.

I'm just waiting for a final check with our dro applications as there was an error cos myself and wife had some partial wages slips for partial months which flung our average wages calculation which stressed me a bit.

I guess it happens.but CAP took note of all the little things we wanted absolute conformation off on the application form, it is a legal document after all.
so once that's done then we will sign.the corrected dro application from CAP. hopefully next week 

stu12345_2

dro suppliers list

and same link but you can click on it and then click each charity for more info

https://www.gov.uk/guidance/how-to-get-a-debt-relief-order-dro