What happens when you go ahead with a DRO?

koala31

Hi everyone I had a few questions regarding a DRO. My situation is that my partner is moving out due to relationship breakdown. So that means the rent will fall on me (when we were together he would help with bills). I spoke to National Debtline and I qualify for a DRO. Anyways I’ve got two credit cards and 3-5 loans. In regards to a DRO, what happens when you decide to go ahead with it? What is the process? Do they ask for bank statements? I know within the 12 month period if they find you have disposable income of more than £75 the order will be revoked? So what do they look for? Does it matter if you have £100 disposable, will they revoke it? Sometimes my pay differentiates by only £20 (when I claim back for mileage). Is there a chance that the loan companies will say no to the debt relief order? 

ManyWays

Your creditors cant say No to a DRO, it is binding on them.
DROs are pretty non-intrusive, your finances arent inspected each month, you just have to report big changes.. 
National Debtline do some DROs but have they referred you to another advice agency for one?  The adviser that sets up your DRO will be able to answer these questions and any more.

koala31

ManyWays said:

Your creditors cant say No to a DRO, it is binding on them.
DROs are pretty non-intrusive, your finances arent inspected each month, you just have to report big changes.. 
National Debtline do some DROs but have they referred you to another advice agency for one?  The adviser that sets up your DRO will be able to answer these questions and any more.

Hi thanks for replying. National Debtline have left it up to me as I said I will get back to them. I doubt I will have any big chances, the most will be probably £20-£100. I’m just nervous as I know my name will be ruined for years but I need a fresh start as I’m trying to be better. 

ManyWays

What you have said doesnt sound a problem to me, but National Debtline know more about your situation so I suggest you go back to them and ask to take a DRO forward, then talk all your concerns through with the DRO adviser in detail.  

sourcrates

If your income varies, then you calculate an average figure.

The DRO is granted, based on the data available to the IS on the application, on the day it is processed.

You are not checked up on over the 12 months of the DRO, any changes are self reported, as Many way's has said, only major changes should be reported, however an increase in income is usually met by an increase in expenditure, if that`s the case, its normal, and you don`t need report it.

Your DRO advisor will tell you all you need to know, they only submit an application if it will be granted, the only reason why a DRO might be refused is if any of your debts were due to fraud of some kind.

johnjs88

koala31 said:

Hi everyone I had a few questions regarding a DRO. My situation is that my partner is moving out due to relationship breakdown. So that means the rent will fall on me (when we were together he would help with bills). I spoke to National Debtline and I qualify for a DRO. Anyways I’ve got two credit cards and 3-5 loans. In regards to a DRO, what happens when you decide to go ahead with it? What is the process? Do they ask for bank statements? I know within the 12 month period if they find you have disposable income of more than £75 the order will be revoked? So what do they look for? Does it matter if you have £100 disposable, will they revoke it? Sometimes my pay differentiates by only £20 (when I claim back for mileage). Is there a chance that the loan companies will say no to the debt relief order? 

The process for me was

Setting up a stepchange account and completing online debt advice

Choosing Debt Relief Order

Got redirected to Money Wellness and submitted initial application

Went through the document uploading process, all done online in their portal

They did their document reviews which took about a week

I received an email informing me of the telephone appointment.

IS Adviser called me on the date and time

We went through the application, listed debts, pulled credit file to check for any i forgot about

Application was submitted

2 days after the telephone call with the IS adviser I received an email informing me my DRO was accepted and all necessary documentation was sent with the approval letter.

koala31

sourcrates said:

If your income varies, then you calculate an average figure.

The DRO is granted, based on the data available to the IS on the application, on the day it is processed.

You are not checked up on over the 12 months of the DRO, any changes are self reported, as Many way's has said, only major changes should be reported, however an increase in income is usually met by an increase in expenditure, if that`s the case, its normal, and you don`t need report it.

Your DRO advisor will tell you all you need to know, they only submit an application if it will be granted, the only reason why a DRO might be refused is if any of your debts were due to fraud of some kind.

Hey thanks for this. I don’t usually get a bonus but in some years we randomly get backdated pay due to the union deciding public workers should get a rise of probably 2%. Do I need to report this within the 12 months? (The bonus after it was taxed would usually be around £600). And oh what do you mean if the debts were due to fraud of some kind? Can you give me an example?

koala31

johnjs88 said:

koala31 said:

Hi everyone I had a few questions regarding a DRO. My situation is that my partner is moving out due to relationship breakdown. So that means the rent will fall on me (when we were together he would help with bills). I spoke to National Debtline and I qualify for a DRO. Anyways I’ve got two credit cards and 3-5 loans. In regards to a DRO, what happens when you decide to go ahead with it? What is the process? Do they ask for bank statements? I know within the 12 month period if they find you have disposable income of more than £75 the order will be revoked? So what do they look for? Does it matter if you have £100 disposable, will they revoke it? Sometimes my pay differentiates by only £20 (when I claim back for mileage). Is there a chance that the loan companies will say no to the debt relief order? 

The process for me was

Setting up a stepchange account and completing online debt advice

Choosing Debt Relief Order

Got redirected to Money Wellness and submitted initial application

Went through the document uploading process, all done online in their portal

They did their document reviews which took about a week

I received an email informing me of the telephone appointment.

IS Adviser called me on the date and time

We went through the application, listed debts, pulled credit file to check for any i forgot about

Application was submitted

2 days after the telephone call with the IS adviser I received an email informing me my DRO was accepted and all necessary documentation was sent with the approval letter.

Hi. Can you confirm exactly what documentation they wanted from you? Thank you for the reply I appreciate it. 

johnjs88

@koala31

I had to submit

Proof of Identity
Proof of Address
2 months of bank statements for every active in use bank account
List of creditors and any reference numbers
Income and Expenditure


If your documents check out, your debt adviser will book a telephone appointment with the Official receiver.

During that phone call, they will go through your debts, assets and documentation with you as well as pull your credit file.

johnjs88

johnjs88 said:

@koala31

I had to submit

Proof of Identity
Proof of Address
2 months of bank statements for every active in use bank account
List of creditors and any reference numbers
Income and Expenditure


If your documents check out, your intermediary will book a telephone appointment with the Official receiver.

During that phone call, they will go through your debts, assets and documentation with you as well as pull your credit file.

I forgot to add they also wanted proof of my Universal Credit claim and a copy of the contents of my journal.

ManyWays

johnjs88 said:

If your documents check out, your intermediary will book a telephone appointment with the Official receiver.

During that phone call, they will go through your debts, assets and documentation with you as well as pull your credit file.

This sounds a bit confused. I think the phone call will have been with an approved intermediary; this is an employee of Money Wellness who submits your DRO application. At no point does someone who needs a DRO ever speak to "the official receiver", who is an employee of the government's Insolvency Service.