DRO recent credit question

bdl23xx

Hello

After posting my SOA I procrastinated and delayed and took out 2 more low amount 0% cards in February, delaying the inevitable and continuing my ineffective way of dealing with my debt by robbing Peter to pay Paul. However end of April there is no money left to pay anyone, I didn't have the £463 needed for 6 minimum payments, so I have missed payments for the first time (phone calls, texts and emails began within 2 days). So it's time to face it (again).

I completed the Step Change tool today and it recommended a DRO, however it says that it would not be given if you had taken out credit recently. I called them to ask how recent is recent as I have just taken the 2 new cards in Feb, but the lady I spoke to didn't know. She did say if it was turned down I couldn't apply again for 6 years, so would be better to do breathing space and a token payment plan for a while first. Is there anyone who has applied for a DRO know how long after getting credit you can apply for a DRO? Should I do it now or if I need to wait, then how long would be advised?

Thank you

Brie

I don't know for sure but when there was a blip on trying to do a DRO application for other things it was generally suggested that the applicant should wait several months, even a year.

Don't let that put you off. Getting everything organised for a DRO takes time. Yes if you have people pounding on your door (they don't and won't) then get an official "breathing space". Personally I suggest not doing that just yet. Stop paying all your non priority debts, get your SOA looking pretty slick, start setting up your emergency fund. Go back to them in 3 months and talk to them again. It takes a bit of nerve to sort it out but in 3 months you'll be about half a year from your card applications and things will look more settled. If in a couple of months creditors do start to be an issue then perhaps breathing space would be a good idea.

Others will be along and might suggest differently. Weigh up the opinions, ask more questions and hopefully some reassurance will be possible.

bdl23xx

https://forums.moneysavingexpert.com/discussion/comment/81988011#Comment_81988011

Thank you Brie, that makes sense. Step Change said my SOA figures look OK and I have set up an emergency fund, I'm being meticulous with my bank statements, sticking to the SOA budget for the last 2 months so I'll continue to do that a little longer. I was nervous not to pay the cards for the first time but I actually feel relieved. I'm just ignoring the calls/emails.

sourcrates

You can withdraw the £680 bankruptcy fee from a credit card and go bankrupt the same day, so credit taken out in February won`t be a problem when applying for a DRO.

There are three main reasons why a DRO would be rejected.

(1) Some or all of your debt was acquired by fraudulent means.

(2) You have deliberately continuously prioritised one non essential creditor over another.

(3) You have had a DRO in the last 6 years.

There are other reasons for rejection as well, but taking out credit 3 months ago is not one of them.

Honestly, it won`t be a problem.

bdl23xx

https://forums.moneysavingexpert.com/discussion/comment/81989379#Comment_81989379

Thank you so much for the reassurance, I might sleep tonight now