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    • fatbelly
    • By fatbelly 9th Mar 18, 10:20 PM
    • 12,161 Posts
    • 9,193 Thanks
    fatbelly
    Hi. With a DRO, you cannot have a car if it is worth over £1000.
    Originally posted by Twubble
    Or to put it another way, if you own a car worth over £1000 you cannot have a DRO

    hi there.

    im currently looking into applying for a DRO. My first question is, according to my contract for my hp car, if im subject to bankruptcy or iva (no mention of DRO) i can lose the car but still be expected to pay. I need my car for work.

    Ive never missed a payment to them and i can afford the monthly payments for the car without issue.

    Do i have to include the hp car in the dro given the contract doesnt explicitly state a DRO. I appreciate that a DRO is a type of bankruptcy but their wording is not that specific.

    TIA
    Originally posted by Damo66a
    A car on HP is not owned by you - it is owned by the finance company. Provided your agreement continues to run through the whole 12-month moratorium period that particular qualifying criterion (car value<£1k) isn't breached.

    You then need to consider whether it needs to be included as a debt. It will show on your credit report. If it's in arrears it must be included. If your payments are up to date it need not, but the DRO Unit will need to be informed because they will see it on your credit report.

    Then the question arises whether you can include the monthly payment as a legitimate expenditure item. If the car value is less than 1k (unlikely but not impossible), it can be. If the car value is more than 1k (likely), it cannot.

    That may mean that you breach the £50 per month surplus income rule. If you are still under £50 per month surplus income then it may be possible to apply for a DRO and get a third party to fund your HP.

    Hope you weren't expecting a simple answer. This takes up several pages on the Intermediary Guidance.
    • SuperSeagull
    • By SuperSeagull 12th Mar 18, 3:01 PM
    • 47 Posts
    • 5 Thanks
    SuperSeagull
    My wife and I own a car valued at about £4k it is a 14 plate Kia which we paid cash for and is registered in her name. However since buying it our debts have accumulated and are now a problem. Having this car does it make us not eligible to obtain a DRO for either of us. We both have pension and pension credit as our income.
    • sourcrates
    • By sourcrates 12th Mar 18, 5:04 PM
    • 13,706 Posts
    • 13,040 Thanks
    sourcrates
    My wife and I own a car valued at about £4k it is a 14 plate Kia which we paid cash for and is registered in her name. However since buying it our debts have accumulated and are now a problem. Having this car does it make us not eligible to obtain a DRO for either of us. We both have pension and pension credit as our income.
    Originally posted by SuperSeagull
    If you meet all the other criteria for a DRO, then you could take one, your wife with a 4k car unfortunately, could not.

    DRO`s are specific to the individual, you cannot do a joint one, the threshold for assets is £1000, and a car worth no more than £1000.
    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 are mine and not the official line of MoneySavingExpert.com.

    For free debt advice, contact either : Stepchange, National Debtline, or, CAB.
    For Free Legal advice see : http://legalbeagles.info/
    • kirkwood78
    • By kirkwood78 22nd Mar 18, 8:27 PM
    • 2 Posts
    • 0 Thanks
    kirkwood78
    when a DRO finishes
    Hi There

    My Husband recently got awarded a DRO in January ( we live in Northern Ireland). I want to find out what happens when it finishes? As from all the information the adviser gave us this is not very clear. It just seems to finish. However i want to know; Do they ask to meet you and go over you income/expenditure again at the end? and do they ask to see evidence of your bank statements, etc to ensure you have not had over £50 a month left, each month through the year?

    Finally my husband has been offered an increase in hr's which would mean his overall salary would increase by £1000 in the year. if he was to accept it would the mean the DRO would be cancelled.?

    Thanks in advance
    • sourcrates
    • By sourcrates 22nd Mar 18, 10:07 PM
    • 13,706 Posts
    • 13,040 Thanks
    sourcrates
    Hi There

    My Husband recently got awarded a DRO in January ( we live in Northern Ireland). I want to find out what happens when it finishes? As from all the information the adviser gave us this is not very clear. It just seems to finish. However i want to know; Do they ask to meet you and go over you income/expenditure again at the end? and do they ask to see evidence of your bank statements, etc to ensure you have not had over £50 a month left, each month through the year?

    Finally my husband has been offered an increase in hr's which would mean his overall salary would increase by £1000 in the year. if he was to accept it would the mean the DRO would be cancelled.?

    Thanks in advance
    Originally posted by kirkwood78
    Once granted, that is it, no one will have any further contact with you, as soon as the one year anniversary is up, it is over, no bells, no whistles, it just ends.

    After 3 months he will drop off the insolvency register, 5 years later it will be gone from his credit file.

    If he failed to meet the £50 surplus income rule, he is obliged to inform the insolvency service, and the DRO would be revoked yes.

    Best advice is to increase your expenditure in proportion to your income, so you still meet the criteria.
    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 are mine and not the official line of MoneySavingExpert.com.

    For free debt advice, contact either : Stepchange, National Debtline, or, CAB.
    For Free Legal advice see : http://legalbeagles.info/
    • kirkwood78
    • By kirkwood78 23rd Mar 18, 1:19 PM
    • 2 Posts
    • 0 Thanks
    kirkwood78
    thanks
    Hi Sourcrates,
    Thank you very much for your reply, its very helpful
    • Marjorie Sheppard
    • By Marjorie Sheppard 9th Apr 18, 1:40 PM
    • 1 Posts
    • 0 Thanks
    Marjorie Sheppard
    DRO Application before April 2018
    Hi,
    I applied for DRO in February this year and paid the £90 on 29th of March in the post office. I have just read the post about the new rules regarding DRO starting April this year, when I went to CAB in Feb., the adviser didnt mention that there will be changes going to happen for DRO this April. Is my application going to be affected? I am actually still awaiting for the approval of my DRO as there is problem with their system apparently and they still unable to tract the payment I have paid last 29/03/18. I was told to wait in 2 weeks.

    Any advise you can give me?

    Marj
    • sourcrates
    • By sourcrates 9th Apr 18, 5:44 PM
    • 13,706 Posts
    • 13,040 Thanks
    sourcrates
    Hi,
    I applied for DRO in February this year and paid the £90 on 29th of March in the post office. I have just read the post about the new rules regarding DRO starting April this year, when I went to CAB in Feb., the adviser didnt mention that there will be changes going to happen for DRO this April. Is my application going to be affected? I am actually still awaiting for the approval of my DRO as there is problem with their system apparently and they still unable to tract the payment I have paid last 29/03/18. I was told to wait in 2 weeks.

    Any advise you can give me?

    Marj
    Originally posted by Marjorie Sheppard
    Hi Marjorie,

    We are into April now, and as far as I am aware there have been no changes to Debt Relief Orders, or the qualifying criteria.

    what is it you have heard ?
    Last edited by sourcrates; 09-04-2018 at 5:50 PM.
    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 are mine and not the official line of MoneySavingExpert.com.

    For free debt advice, contact either : Stepchange, National Debtline, or, CAB.
    For Free Legal advice see : http://legalbeagles.info/
    • fatbelly
    • By fatbelly 9th Apr 18, 6:14 PM
    • 12,161 Posts
    • 9,193 Thanks
    fatbelly
    Hi,
    I applied for DRO in February this year and paid the £90 on 29th of March in the post office. I have just read the post about the new rules regarding DRO starting April this year, when I went to CAB in Feb., the adviser didnt mention that there will be changes going to happen for DRO this April. Is my application going to be affected? I am actually still awaiting for the approval of my DRO as there is problem with their system apparently and they still unable to tract the payment I have paid last 29/03/18. I was told to wait in 2 weeks.

    Any advise you can give me?

    Marj
    Originally posted by Marjorie Sheppard
    I'm an intermediary and I'm not aware of any rule change.

    What I am aware of is that there is a glitch on the DRO payment system and the Team have not been able to see any payment made after 28 March.

    This may mean (unless they can sort it out) that applications will start getting rejected incorrectly next week.

    They have said that they are working on it and they will reinstate any applications unfairly rejected.

    You've just been very unfortunate.
    • fatbelly
    • By fatbelly 10th Apr 18, 6:26 PM
    • 12,161 Posts
    • 9,193 Thanks
    fatbelly
    I am actually still awaiting for the approval of my DRO as there is problem with their system apparently and they still unable to tract the payment I have paid last 29/03/18. I was told to wait in 2 weeks.

    Any advise you can give me?

    Marj
    Originally posted by Marjorie Sheppard
    I think they solved the problem this afternoon. Has your dro been approved now?
    • Summerb94
    • By Summerb94 11th Apr 18, 4:26 PM
    • 8 Posts
    • 0 Thanks
    Summerb94
    Hello, I!!!8217;m new here and just have a quick question.
    I!!!8217;ve sent all my paper work (credit file, bank statements, proof of account balances etc) to stepchange and have been told today they will start preparing my draft application and I will receive it and the £90 barcode in the post within 4 weeks.
    My debts currently stand at about £19,910 so very close to the limit. I had payments due to VERY and NEXT this week. My partner has paid them for me today just the minimum amounts this was because I was worried that If I didn!!!8217;t pay them I!!!8217;d incure extra charges and interest on my accounts and that would send me over the £20,000 limit.
    I have another debt payment due in 2 weeks it!!!8217;s for a loan. Should I assume I will (my partner will) have to pay this for me? If I cancel the direct debit will it look like I have prioritised next and very because I have paid them? I!!!8217;m unsure what to do? I!!!8217;m assuming I won!!!8217;t have received the draft application from stepchange within 2 weeks, I don!!!8217;t want to risk going over the £20,000 limit.
    Sorry it!!!8217;s so long and thank you if you!!!8217;ve read this far!
    • fatbelly
    • By fatbelly 11th Apr 18, 6:06 PM
    • 12,161 Posts
    • 9,193 Thanks
    fatbelly
    Hello, I!!!8217;m new here and just have a quick question.
    I!!!8217;ve sent all my paper work (credit file, bank statements, proof of account balances etc) to stepchange and have been told today they will start preparing my draft application and I will receive it and the £90 barcode in the post within 4 weeks.
    My debts currently stand at about £19,910 so very close to the limit. I had payments due to VERY and NEXT this week. My partner has paid them for me today just the minimum amounts this was because I was worried that If I didn!!!8217;t pay them I!!!8217;d incure extra charges and interest on my accounts and that would send me over the £20,000 limit.
    I have another debt payment due in 2 weeks it!!!8217;s for a loan. Should I assume I will (my partner will) have to pay this for me? If I cancel the direct debit will it look like I have prioritised next and very because I have paid them? I!!!8217;m unsure what to do? I!!!8217;m assuming I won!!!8217;t have received the draft application from stepchange within 2 weeks, I don!!!8217;t want to risk going over the £20,000 limit.
    Sorry it!!!8217;s so long and thank you if you!!!8217;ve read this far!
    Originally posted by Summerb94
    You're in a difficult position and stepchange should be acting more promptly - they could get the barcode to you tomorrow. Are they aware you are so close to the limit and still accruing interest?

    I don't think you can avoid paying the loan payment in 2 weeks as things stand but it seems a waste of your money.

    Are these preference? No. A third party can do what it wants with its money and your partner is making these payments.
    • Summerb94
    • By Summerb94 11th Apr 18, 6:17 PM
    • 8 Posts
    • 0 Thanks
    Summerb94
    Thanks for getting back to me fatbelly. I am in a difficult situation. The loan payment which is due in 2 weeks is for almost £400... Iíll be angry if I pay it then a day or 2 later I receive the draft and barcode but Iíll also be angry if I donít pay it then get slapped with late payment fees/interest and charges from the bank which may then mean my dro cant go ahead! Iíll ring stepchange in the morning and see if they could possibly prioritise me or anything. Other wise I guess my partner will just have to make the loan payment for me but hopefully itíll be the last payment he does have to make! Thanks again fatbelly
    • fatbelly
    • By fatbelly 11th Apr 18, 6:25 PM
    • 12,161 Posts
    • 9,193 Thanks
    fatbelly
    I wonder if the delay is in getting the credit report (s). Do you know if they already have done that?

    When you phone, you could offer to do that and email the results to them.

    I just get Experian, which is all the DRO team require, but I am aware some institutions think you should get all three.

    That would better explain the 4-week delay. I think the key here is getting through to their DRO department and having a chat with someone who specialises
    • Summerb94
    • By Summerb94 11th Apr 18, 6:33 PM
    • 8 Posts
    • 0 Thanks
    Summerb94
    They have got my credit report I sent that in to them yesterday then I phoned today to check they received it and was told yes weíve got everything we need from you. It takes upto 4 weeks to write up the draft and then get it sent out.
    It wasnít until after the phone call I realised that I had these 3 payments due within the next 2 weeks. Iíll give them a call tomorrow and go over it then and fingers crossed they could speed it up for me!
    Thanks again fatbelly!
    • Sam090884
    • By Sam090884 16th Apr 18, 11:39 PM
    • 17 Posts
    • 1 Thanks
    Sam090884
    Hi everyone

    My DRO ended Friday 13th I know I!!!8217;m still listed for the next three months on the register
    What happens now with my credit file will my debts now say closed/discharged?

    What!!!8217;s the best way now to rebuild my credit?

    Thanks in advance
    • Summerb94
    • By Summerb94 17th Apr 18, 1:46 PM
    • 8 Posts
    • 0 Thanks
    Summerb94
    Hi,
    My application was submitted this afternoon to the insolvency service. I feel sick with worry. How long usually on average does it take to get an answer? I!!!8217;ll be checking the insolvency register online every day! Thank you!
    • Jenie
    • By Jenie 17th Apr 18, 8:41 PM
    • 10 Posts
    • 2 Thanks
    Jenie
    I submitted my application yesterday and got approved today so hopefully you will hear by tomorrow.
    • Mumof4.84
    • By Mumof4.84 18th Apr 18, 5:12 PM
    • 10 Posts
    • 0 Thanks
    Mumof4.84
    I submitted my dro on Tuesday and I phoned today they have said there's a problem with the payment system and there going to take at least 10-14days to be looked at. Which is weird as when I rang them the day it submitted they told me give it 24-48hrs for a decision
    • Twubble
    • By Twubble 18th Apr 18, 7:31 PM
    • 42 Posts
    • 5 Thanks
    Twubble
    I submitted my dro on Tuesday and I phoned today they have said there's a problem with the payment system and there going to take at least 10-14days to be looked at. Which is weird as when I rang them the day it submitted they told me give it 24-48hrs for a decision
    Originally posted by Mumof4.84
    Hi. There has been a problem. Not sure if it's sorted yet or not, but you could try looking on the Individual Insolvency Register to see if you are listed. If not, don't worry as they will still be having issues. It usually takes around two days.
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