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Debt Relief Orders (DRO) - Information & help thread

edited 13 March 2019 at 3:26PM in IVA & DRO
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  • edited 26 April 2019 at 2:37PM
    jess85jess85 Forumite
    2 posts
    edited 26 April 2019 at 2:37PM
    Hi,

    I have a quick question: Is it possible for one of my creditors to issue me a Default Notice ("under Section 87 of the Consumer Credit Act 1974") after my DRO has begun (and after they have acknowledged it)? I have received a letter telling me this is what they are going to do (as well as send the default information to credit reference agencies). I haven't received any similar communication from the other creditors on the DRO.

    Thanks for any help.
  • sourcratessourcrates Forumite, Board Guide
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    jess85 wrote: »
    Hi,

    I have a quick question: Is it possible for one of my creditors to issue me a Default Notice ("under Section 87 of the Consumer Credit Act 1974") after my DRO has begun (and after they have acknowledged it)? I have received a letter telling me this is what they are going to do (as well as send the default information to credit reference agencies). I haven't received any similar communication from the other creditors on the DRO.

    Thanks for any help.


    Yes they can and should default the account.


    Ideally you want all accounts defaulted no later than the date of the start of your DRO.


    The best time to chase all this up is once the 12 month monotorium period has been successfully completed, you should then go through your list of creditors and make sure all accounts are defaulted inline with the start date, or earlier, of your DRO, each account says settled or closed, and the balance is zero.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File and Ratings, Bankruptcy And Living With It, boards. "I volunteer to help get your forum questions answered and keep the forum running smoothly".
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    [email protected].
    Any views expressed are mine and not the official line of MoneySavingExpert.com.
    For free debt advice, contact either : Stepchange, National Debtline, CitizensAdviceBureaux.
  • fatbellyfatbelly Forumite
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    I think yes, as long as the default date aligns with the date of the dro. Guidance says:
    In normal circumstances lenders will be notified when the debt that is owed to them is to be included in an insolvency e.g. bankruptcy, IVA or similar and should be marked as included in that by filing a default as soon as is practical.

    The default date must be consistent with that of the CCJ/bankruptcy or IVA; therefore a default should be filed as being no later than the date of the insolvency order. In circumstances where the lender is not immediately aware, the default can be filed at that point in time. If evidence of the insolvency date is provided, the default date recorded at the CRA will be aligned.

    If a default has already been filed and a CCJ or other insolvency or similar is subsequently registered, no further action is needed.
  • jess85jess85 Forumite
    2 posts
    Thanks, sourcates and fatbelly, that's made things a lot clearer to me.

    One other small thing: In the same letter, they stated that they would keep sending me statements and "statutory notices" (not entirely sure what this means) during the course of the DRO. I was aware this could happen, but was wondering how often I might expect to receive such correspondence. I was on paperless monthly statements, I am now obliged to receive future ones by post?

    Thanks again.
  • sourcratessourcrates Forumite, Board Guide
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    jess85 wrote: »
    Thanks, sourcates and fatbelly, that's made things a lot clearer to me.

    One other small thing: In the same letter, they stated that they would keep sending me statements and "statutory notices" (not entirely sure what this means) during the course of the DRO. I was aware this could happen, but was wondering how often I might expect to receive such correspondence. I was on paperless monthly statements, I am now obliged to receive future ones by post?

    Thanks again.


    Statutory notices are sent once every 6 to 12 months, something else i would not worry about.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File and Ratings, Bankruptcy And Living With It, boards. "I volunteer to help get your forum questions answered and keep the forum running smoothly".
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to:
    [email protected].
    Any views expressed are mine and not the official line of MoneySavingExpert.com.
    For free debt advice, contact either : Stepchange, National Debtline, CitizensAdviceBureaux.
  • fatbellyfatbelly Forumite
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    It's because the debt still exists during the moratorium 12 months. Once you get to the end you are 'discharged' from the debt and all letters should stop.
  • Hi. I was granted a dro in March this year. Just wanted to know would I need the let the dro team the following.
    I been offered a new job but not sure if I’m going to accept it yet. Need to decide whether it’s for me. I would be less than I’m on now, probably about £100/£140 less a month but it is closer to where I live so I would be using about that much less in petrol costs. So there would be no improvement in my circumstances. So just wondered if I do accept the job do I have to let the dro unit know.
    Thanks
  • fatbellyfatbelly Forumite
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    Brandy85 wrote: »
    Hi. I was granted a dro in March this year. Just wanted to know would I need the let the dro team the following.
    I been offered a new job but not sure if I’m going to accept it yet. Need to decide whether it’s for me. I would be less than I’m on now, probably about £100/£140 less a month but it is closer to where I live so I would be using about that much less in petrol costs. So there would be no improvement in my circumstances. So just wondered if I do accept the job do I have to let the dro unit know.
    Thanks

    Technically, yes. You declared your employer on the application last month so this counts as a change in circumstances. There shouldn't be any problem with your DRO though if your surplus income remains under £50 per month
  • Thank you. If I do decide to accept the job I will notify them of the change of address and income. Thanks
  • Brandy85Brandy85 Forumite
    3 posts
    I have decided not to take this job. But I know If am to take another job in the moratorium period to notify them of any changes etc.
    I want to thank everyone on this forum, reading people’s queries and replies it gave me the push to actually to apply for my debt relief order.. although stressful at the time etc and was getting constant letters and phone calls from creditors.. I do feel a bit of weight has lifted. And I know if I ever need any advice to come here.
    Thanks ��
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