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    • infinate_spark
    • By infinate_spark 28th Apr 19, 5:12 PM
    • 5Posts
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    infinate_spark
    DRO and credit file?
    • #1
    • 28th Apr 19, 5:12 PM
    DRO and credit file? 28th Apr 19 at 5:12 PM
    Hi, I'm coming to the end of a DRO and I'm panicking. I'm attempting to pay off my small debt as I may now be able to do so, but I'm unsure of how long this will stay on my credit file. I've heard it will stay on file regardless of if it's all paid off before the moratum period ends, does anyone know if this is true? At the time I took out the DRO I had broken my hip and my knee and had no way of working for a while, then the threatening letters cane do I panicked, I had no idea the damn thing was stuck to me for 6 years.. is this really true? I plan on ringing the IS tomorrow,but I've been contacting my 2 creditors for final bills
Page 1
    • keepcalmandstayoutofdebt
    • By keepcalmandstayoutofdebt 28th Apr 19, 6:33 PM
    • 3,652 Posts
    • 1,925 Thanks
    keepcalmandstayoutofdebt
    • #2
    • 28th Apr 19, 6:33 PM
    • #2
    • 28th Apr 19, 6:33 PM
    It is recorded on any credit report for the full 6 years. (It definately drops of at the 6th year anniversary date - you don't need to take any action it happens automatically)

    As soon as you are confirmed, there is no way to get out of the debt relief order. (you cannot buy yourself out by trying to pay as the process has already started if you've paid the £90 fee and submitted application etc) you can have the order revoked by the IS but I really don't know about or trust the likelihood.

    Things are improving, a once withdrawn job offer because of the debt relief order; I was pleased to see them asking when it came to second time (yes I was that silly) around about debt relief order on same questioning line as IVA and not on the bankruptcy line which was different to my first experience 6 years ago. (Although anyone is best thinking of it as mini bankruptcy regardless and not believing it is totally over once 15 months are completed). (The effects and stigma of the order, the only godsend is you are never really chased for the debt/money owed if managing the credit report)

    Sorry. I guess that is why the compensation world is endorsed before the touching of such formal debt solution.
    RIP my Rags. 16/06/19 at 4am
    Know I had to moneysave but you didn't have to go
    x
    • sourcrates
    • By sourcrates 28th Apr 19, 7:52 PM
    • 17,694 Posts
    • 16,639 Thanks
    sourcrates
    • #3
    • 28th Apr 19, 7:52 PM
    • #3
    • 28th Apr 19, 7:52 PM
    Have I got this right, why on earth are you paying debts included in your DRO ???

    You do not pay debts included in a debt relief order, your are forbidden from doing so.

    Any debt solution/default will stay on your credit file for 6 years, that is basic common knowledge.

    You post makes no real sense to me I’m afraid!!
    I'm a Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
    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 forumteam@moneysavingexpert.com. Any views expressed are mine and not the official line of MoneySavingExpert.com.

    For free debt advice, contact either : Stepchange, National Debtline, or, CAB.
    • fatbelly
    • By fatbelly 28th Apr 19, 8:11 PM
    • 13,980 Posts
    • 11,008 Thanks
    fatbelly
    • #4
    • 28th Apr 19, 8:11 PM
    • #4
    • 28th Apr 19, 8:11 PM
    Hi, I'm coming to the end of a DRO and I'm panicking.

    I'm attempting to pay off my small debt as I may now be able to do so, but I'm unsure of how long this will stay on my credit file.

    I've heard it will stay on file regardless of if it's all paid off before the moratum period ends, does anyone know if this is true?

    At the time I took out the DRO I had broken my hip and my knee and had no way of working for a while, then the threatening letters cane do I panicked, I had no idea the damn thing was stuck to me for 6 years.. is this really true?

    I plan on ringing the IS tomorrow,but I've been contacting my 2 creditors for final bills
    Originally posted by infinate_spark
    OK. At the time you applied for a Debt Relief Order you made a number of declarations. One was that you were insolvent and unable to pay your bills. Another was that your surplus income was under £50 per month. Another was that your assets were less than £1000.

    If you are still in the 12-month moratorium period and any of those things are now not true, then you have a duty to inform the DRO Unit, who will consider whether your DRO should be revoked. It may not be.

    Until and unless it is revoked, you are not allowed to make payments to your creditors and they are not allowed to demand them. You should ask for a refund of any payments made during the moratorium. There are some possible exceptions to this such as secured goods and rent arrears. Let us know if you think those may apply.

    Your credit file (which is the least of your worries frankly) should show your creditors as defaulted with a date on or before the DRO date. It will also show the DRO itself. Both kinds of marks stay for 6 years as they are an accurate reflection of what happened.

    It does sound like you have failed to understand, or your intermediary failed to explain, what a DRO is and how it works. Who was it done through?
    • infinate_spark
    • By infinate_spark 28th Apr 19, 10:06 PM
    • 5 Posts
    • 0 Thanks
    infinate_spark
    • #5
    • 28th Apr 19, 10:06 PM
    • #5
    • 28th Apr 19, 10:06 PM
    Have I got this right, why on earth are you paying debts included in your DRO ???

    You do not pay debts included in a debt relief order, your are forbidden from doing so.

    Any debt solution/default will stay on your credit file for 6 years, that is basic common knowledge.

    You post makes no real sense to me Iím afraid!!
    Originally posted by sourcrates
    I'm not actively paying the debts in the DRO as I can't, I just wondered if there was any way of cancelling and repaying, though I don't myself have the resources for that, I may be able to borrow so I can repay them. The thought of anything negatively affecting my credit file for 6 years made me feel sick. When I took out the DRO I was recovering from a broken hip and knee and wasn't thinking straight thanks to all the painkillers.. I was wondering if I could clear up the debt before the moratum period. I'll be calling the IS tomorrow
    • Clouds88
    • By Clouds88 29th Apr 19, 6:28 AM
    • 193 Posts
    • 177 Thanks
    Clouds88
    • #6
    • 29th Apr 19, 6:28 AM
    • #6
    • 29th Apr 19, 6:28 AM
    How much was the debt? You’ve got to ask yourself why you want it cancelled? Instead of borrowing to clear the debt and don’t you save some money so you never have to get in debt again. Why is it such a problem that it affects your credit score unless you want to get further credit??
    • infinate_spark
    • By infinate_spark 29th Apr 19, 8:59 AM
    • 5 Posts
    • 0 Thanks
    infinate_spark
    • #7
    • 29th Apr 19, 8:59 AM
    • #7
    • 29th Apr 19, 8:59 AM
    How much was the debt? Youíve got to ask yourself why you want it cancelled? Instead of borrowing to clear the debt and donít you save some money so you never have to get in debt again. Why is it such a problem that it affects your credit score unless you want to get further credit??
    Originally posted by Clouds88
    1.3k. I was told that if you made steps to pay it off rather than have the DRO complete in 12 months that it will show less negatively on your credit file. I've never had to borrow money, get a loan so I gave no idea how these things work, what I do know is that my credit file is looking terrible and I want to do all I can to fix it. I'm looking to move home soon and I don't want this to go against me. It seems the impact on my credit file is the same whichever option I choose
    • fatbelly
    • By fatbelly 29th Apr 19, 5:31 PM
    • 13,980 Posts
    • 11,008 Thanks
    fatbelly
    • #8
    • 29th Apr 19, 5:31 PM
    • #8
    • 29th Apr 19, 5:31 PM
    1.3k. I was told that if you made steps to pay it off rather than have the DRO complete in 12 months that it will show less negatively on your credit file.
    Originally posted by infinate_spark
    This is absolutely not true. Where did you read that?

    I've never had to borrow money, get a loan so I gave no idea how these things work, what I do know is that my credit file is looking terrible and I want to do all I can to fix it. I'm looking to move home soon and I don't want this to go against me. It seems the impact on my credit file is the same whichever option I choose
    Originally posted by infinate_spark
    That is correct.

    So why not leave the DRO to complete and then have a fresh start debt-free.
    • Annie35
    • By Annie35 29th Apr 19, 6:39 PM
    • 363 Posts
    • 294 Thanks
    Annie35
    • #9
    • 29th Apr 19, 6:39 PM
    • #9
    • 29th Apr 19, 6:39 PM
    The damage has already been done, you can't turn the clock back & erase the DRO.

    Once the DRO is complete you can do a file clear up, how to is in the link at the top of the page then manage your finances perfectly you can rebuild quicker then waiting for the magic 6 years (for instance many people get a credit card within a year of discharge, mortgage after a few etc)

    Just out of interest if you've never had to borrow money how did you owe £1.3k
    ... & how come they got you into a DRO for it?? Bit sledgehammer/nut
    • infinate_spark
    • By infinate_spark 29th Apr 19, 10:48 PM
    • 5 Posts
    • 0 Thanks
    infinate_spark
    This is absolutely not true. Where did you read that?

    A customer services advisor for npower..

    That is correct.

    So why not leave the DRO to complete and then have a fresh start debt-free.
    Originally posted by fatbelly
    That's my only choice, I've been reading up on how to deal with tidying up my credit file.. Thanks for the info
    • infinate_spark
    • By infinate_spark 29th Apr 19, 10:56 PM
    • 5 Posts
    • 0 Thanks
    infinate_spark
    The damage has already been done, you can't turn the clock back & erase the DRO.

    Once the DRO is complete you can do a file clear up, how to is in the link at the top of the page then manage your finances perfectly you can rebuild quicker then waiting for the magic 6 years (for instance many people get a credit card within a year of discharge, mortgage after a few etc)

    Just out of interest if you've never had to borrow money how did you owe £1.3k
    ... & how come they got you into a DRO for it?? Bit sledgehammer/nut
    Originally posted by Annie35
    I only felt the panic to try to settle the debt as the npower advisor said it would look better on my credit file if I settle the bill rather than leave it to the DRO. I now know that's bull.. I'd always stayed on top of my finances and never had s credit card as I never needed one, I'm sensible and live within my means, but after I broke my hip and my knee, lost my job (riding instructor and groom) the recovery didn't go as well as expected due to osteoporosis and hypermobility, I kept re fracturing and dislocating myself, so I had to prioritize my rent over npower for a year, their financial recovery agents are so aggressive, I was over stressed, on all the painkillers,not thinking straight and seemingly took the wrong advice with the wrong expectations. Still, as you said, I can rebuild my credit file as long as I stay on top of it
    • fatbelly
    • By fatbelly 30th Apr 19, 5:27 AM
    • 13,980 Posts
    • 11,008 Thanks
    fatbelly
    the npower advisor said it would look better on my credit file if I settle the bill rather than leave it to the DRO.
    Originally posted by infinate_spark
    That adviser needs training - you should complain.
    • sourcrates
    • By sourcrates 30th Apr 19, 9:19 AM
    • 17,694 Posts
    • 16,639 Thanks
    sourcrates
    I'm not actively paying the debts in the DRO as I can't, I just wondered if there was any way of cancelling and repaying,
    Originally posted by infinate_spark

    The damage is now done, you cannot reverse it, it seems you were either given very bad advice, or you mis-understood what was been said to you.


    It would be better now to allow the DRO to complete, that way it takes care of the debt, which is one less worry.


    Time will heal your credit file, the further back in time negative information is, the less effect it will have on you.


    You cannot reverse what has happened now, its immpossible, i would not rock the boat otherwise you will open up a whole new world of hurt for yourself.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
    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 forumteam@moneysavingexpert.com. Any views expressed are mine and not the official line of MoneySavingExpert.com.

    For free debt advice, contact either : Stepchange, National Debtline, or, CAB.
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