Debt Relief Orders (DRO) - Information & help thread

gellerbing · 16 February 2018 at 11:30AM

Ive received my application for DRO through email and just been reading through the questions and documents they need.
Is there a reason they are asking for my employer details? i don't exactly want my work to know my business, will it affect my job at all?

They also want a credit report and suggested noddle, however when i tried signing up they asked for debit card details which i don't want to give. Can i send them a report from clear score instead? Or does it have to be noddle?

Im currently having money taken out of my wages because i was overpaid for 3 months, does this need to be included in my debts? My last payment will be next week to them so by the time i submit my application i won't owe any more to my employer.

When would be best to stop paying my creditors? It says to contact them now explaining that im applying for a dro, but do i still pay them during this time? At the moment im still paying them the minimum and leaving myself with nothing at all to keep them off my back, if i stop paying or pay token payments before my dro application goes in, then i will be much worse off if the application is rejected but at the same time im worried it will be rejected anyway if im still paying them.

Also do i have to close my bank account? I have no overdraft but i do have 3 credit cards linked to the account, can they take money to pay for the cards whilst in a DRO?

cathbland87 · 16 February 2018 at 11:43AM

Hi there, not sure if I'm in the right place and this is my first ever forum post so please be gentle !!!128522;. I was granted a debt relief order 2 days ago and included in the debts are 2 over payments to child tax credits (around £600) and an income tax debt from 2011 (around £300). Can anyone advise in what happens next please? Benefits are currently deducting a percentage off my weekly benefit for the child tax credits overpayment and the income tax is being collected at £8.90 per month via direct debit, I have cancelled this direct debit under the advice of the debt relief order and phoned them yesterday but they said they hadn't received anything yet, so I'll keep trying then, but is this normal? Does it take a while for them to update? Also what happens with the tax credits overpayment? How long do they take to receive the DRO paperwork and update their end? Do I need to phone them and email a copy of the order? Can anyone advise or has anyone been in this position and can advise me on what you did or what they said please?

fatbelly · 16 February 2018 at 9:07PM

Gellerbing wrote: »

Ive received my application for DRO through email and just been reading through the questions and documents they need.
Is there a reason they are asking for my employer details? i don't exactly want my work to know my business, will it affect my job at all?

They also want a credit report and suggested noddle, however when i tried signing up they asked for debit card details which i don't want to give. Can i send them a report from clear score instead? Or does it have to be noddle?

Im currently having money taken out of my wages because i was overpaid for 3 months, does this need to be included in my debts? My last payment will be next week to them so by the time i submit my application i won't owe any more to my employer.

When would be best to stop paying my creditors? It says to contact them now explaining that im applying for a dro, but do i still pay them during this time? At the moment im still paying them the minimum and leaving myself with nothing at all to keep them off my back, if i stop paying or pay token payments before my dro application goes in, then i will be much worse off if the application is rejected but at the same time im worried it will be rejected anyway if im still paying them.

Also do i have to close my bank account? I have no overdraft but i do have 3 credit cards linked to the account, can they take money to pay for the cards whilst in a DRO?

Employer details are asked in case there is a court attachment to earnings order - in which case the employer is told to stop the payments. They are not routinely contacted. Whether insolvency affects your job depend on what job you are in. Ask if you don't know.

The only credit report the DRO Team insist on is Experian. Some intermediaries get a second or third report. If yours is insisting on a Callcredit report then you can get a statutory one here:

https://www.callcredit.co.uk/consumer-solutions/your-credit-report/statutory-credit-report

You can pay this with a credit card, or fill out the printable application form and send this by post with either a £2 cheque or postal order made payable to ‘Callcredit Limited’. The completed form should then be sent to Consumer Services Team, Callcredit Limited, PO Box 491, LEEDS LS3 1WZ.

You have to include any debts you have on the day after the DRO is submitted so your overpayment will not be a debt.

Stop paying your creditors now. Get £90 together for your application

Get a new bank account now. Put that one in as a debt if it goes overdrawn.

fatbelly · 16 February 2018 at 9:16PM

cathbland87 wrote: »

Hi there, not sure if I'm in the right place and this is my first ever forum post so please be gentle !!!128522;. I was granted a debt relief order 2 days ago and included in the debts are 2 over payments to child tax credits (around £600) and an income tax debt from 2011 (around £300). Can anyone advise in what happens next please? Benefits are currently deducting a percentage off my weekly benefit for the child tax credits overpayment and the income tax is being collected at £8.90 per month via direct debit, I have cancelled this direct debit under the advice of the debt relief order and phoned them yesterday but they said they hadn't received anything yet, so I'll keep trying then, but is this normal? Does it take a while for them to update? Also what happens with the tax credits overpayment? How long do they take to receive the DRO paperwork and update their end? Do I need to phone them and email a copy of the order? Can anyone advise or has anyone been in this position and can advise me on what you did or what they said please?

Always gentle on this thread!

Your debts are frozen now. Creditors cannot demand payment and you are not allowed to pay them.

I think you are asking: how long does it take for creditors to be informed?

The big ones are informed by email so by the time you are on the register, they have already been informed. However, big institutions like HMRC have a multitude of departments and in practice it may take some time for the message to get to the right one. You could help things along by sending a copy of your 'DRODEBTNOT' - the debtor's notice - to them.

gellerbing · 17 February 2018 at 10:23AM

Thank you very much, thats helped a lot.
Just one more thing, when opening a new bank account i know to go for a basic account but does it matter if i use the current account switch service many banks use now?
Can they take money from our joint savings account?

fatbelly · 17 February 2018 at 4:39PM

Gellerbing wrote: »

Thank you very much, thats helped a lot.
Just one more thing, when opening a new bank account i know to go for a basic account but does it matter if i use the current account switch service many banks use now?
Can they take money from our joint savings account?

The switch service is safe.

Once the DRO is in place they have no right of set-off as that would be a remedy against the debt. But the same principle applies as in all debt advice - you should not be banking where you have debts. So I'd move the savings too.

snowwhyte · 24 February 2018 at 9:00PM

I have decided i finally need to address my debt problem. I am a carer for my elderly grandparents. I registered as self-employed so that I could earn some money online but I make an average of about £150 a month. My grandparents provide me with free room and board and £100 a month towards my expenses. I have £16,000 of unsecured debt and can no longer keep up with the payments.
I think I qualify for a DRO and am planning to phone business debt line next week to discuss my options. I have a few questions about proving my income. My payment for online earning come through Paypal. Can I use a Paypal statement as proof of earnings? Also my grandparents give me money in cash so i can't prove this as income. Do i need proof of that?

fatbelly · 24 February 2018 at 10:53PM

snowwhyte wrote: »

I have decided i finally need to address my debt problem. I am a carer for my elderly grandparents. I registered as self-employed so that I could earn some money online but I make an average of about £150 a month. My grandparents provide me with free room and board and £100 a month towards my expenses. I have £16,000 of unsecured debt and can no longer keep up with the payments.
I think I qualify for a DRO and am planning to phone business debt line next week to discuss my options. I have a few questions about proving my income. My payment for online earning come through Paypal. Can I use a Paypal statement as proof of earnings? Also my grandparents give me money in cash so i can't prove this as income. Do i need proof of that?

You'll need to discuss this with BDL - normally for someone self-employed, you would use the last set of accounts. A paypal statement would not show your net income after tax and expenses.

Unless your grandparents are employing you, their £100 is not income, it's just a random gift and the rule is that a third party can do what it likes with its money. Most of my clients these days have a negative financial statement and are propped up by friends and family.

snowwhyte · 25 February 2018 at 2:35PM

fatbelly wrote: »

You'll need to discuss this with BDL - normally for someone self-employed, you would use the last set of accounts. A paypal statement would not show your net income after tax and expenses.

Unless your grandparents are employing you, their £100 is not income, it's just a random gift and the rule is that a third party can do what it likes with its money. Most of my clients these days have a negative financial statement and are propped up by friends and family.

So does that mean I don't include the £100 and have outgoings that are greater than my incomings?

fatbelly · 25 February 2018 at 2:47PM

snowwhyte wrote: »

So does that mean I don't include the £100 and have outgoings that are greater than my incomings?

Probably, yes. But be guided by BDL.

You are propped up by friends and family like so many others now.

If the insolvency service ever analysed the DRO applications I am sure they would be able to show an increase in negative financial statements since these things started in 2009.

Debt Relief Orders (DRO) - Information & help thread

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