DRO Questions
Comments
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Still likely to be a loan so it goes into a DRO and the PC stays as yours, within your asset limit.
Partners payslips? That would be up to stepchange whether they need to see these.
Thanks for replaying.
Do you think it's a good idea to wait for DRO application Pack and then give a call to Stepchange?
Also, while waiting for all this to get finally sorted (I know it's not done overnight) I keep going through some worse case scenarios in my head and imagining why would they reject the Application or not submit it at all (I know i'm just overthinking things but it's not easy to take my head out of sand after almost 10 years of paying debts and surviving)
I've got one more question, about 6 month ago I took out Loan of 5000£ having "debt consolidation" in mind.
from that 5000£ I settled one loan which was around 2000£ and paid rest on credit card which I also paid off fully and closed. Does this count as preferential payment? even tho both of the "old" loan and credit card is fully settled and gone?0 -
For those just having a look on this thread and thinking of going through DRO,
I will keep on posting here updates regularly of my whole experience of this process
Least I can do to contribute back to this great forum.0 -
Thanks for replaying.
Do you think it's a good idea to wait for DRO application Pack and then give a call to Stepchange?
Also, while waiting for all this to get finally sorted (I know it's not done overnight) I keep going through some worse case scenarios in my head and imagining why would they reject the Application or not submit it at all (I know i'm just overthinking things but it's not easy to take my head out of sand after almost 10 years of paying debts and surviving)
I've got one more question, about 6 month ago I took out Loan of 5000£ having "debt consolidation" in mind.
from that 5000£ I settled one loan which was around 2000£ and paid rest on credit card which I also paid off fully and closed. Does this count as preferential payment? even tho both of the "old" loan and credit card is fully settled and gone?
Update on this: Called CAB and Steve from CAB said: Yes this will be considered as a preferential payment and I will have to mention this to adviser then he said that adviser might still submit application but Insolvency service might put "Debt relief restrictions order" on me.
It is really a shame because when i took that loan out I was doing slightly better financially as my wife was still on maternity leave so I was working full time (now part time) And I was trying to cover loan and credit card with High interest with smaller interest loan, plus I had absolutely no idea there was help available for debts.0 -
Update on this: Called CAB and Steve from CAB said: Yes this will be considered as a preferential payment and I will have to mention this to adviser then he said that adviser might still submit application but Insolvency service might put "Debt relief restrictions order" on me.
It is really a shame because when i took that loan out I was doing slightly better financially as my wife was still on maternity leave so I was working full time (now part time) And I was trying to cover loan and credit card with High interest with smaller interest loan, plus I had absolutely no idea there was help available for debts.
I think Steve is a bit of a pessimist.
A DRRO is a very rare beastIf, during the course of any enquiries, the Official Receiver finds that the debtor has been dishonest, either before or during the period of the DRO, or that the debtor has behaved irresponsibly, the Official Receiver may apply to Court for a Debt Relief Restriction Order (DRRO) or come to an agreement with the debtor to give a Debt Relief Restriction Undertaking (DRRU).
Have you been dishonest?
Have you behaved irresponsibly?
As for a preference, the guidance saysIt is not possible to state precisely what might fall into this category, as any preference will depend on the facts and determined on a case by case basis. In reaching a decision on whether to approve or decline a DRO application, the Official Receiver will have to consider the amount of the payment, whether it would have altered the financial position had it not happened, consider the timing and the reason behind the payment. Intermediaries should be aware that payments to family or friends who have lent money are most likely to be considered preferential.
so I am surprised that Steve can be so authoritative.
Did you take out the loan deliberately to put the other lender and credit card in a better position because you knew you were insolvent and about to go into a Debt Relief Order?
If you talk again to Steve, please tell him to read Insolvency Service Guidance and put his Citizens Advice factsheets in the shredder.0 -
Have you been dishonest?
Have you behaved irresponsibly?
Absolutely not.
Did you take out the loan deliberately to put the other lender and credit card in a better position because you knew you were insolvent and about to go into a Debt Relief Order?
No, My financial situation was slightly better and I was just trying to make it bit easier for me and my family so i would have something left for us end of the month. and I had absolutely no idea there was such a help available for people in debt - let alone knowing anything about DRO at all.
If you talk again to Steve, please tell him to read Insolvency Service Guidance and put his Citizens Advice factsheets in the shredder.
Ha, Will do! Thanks again for your response, it helps a lot through out this whole process!
Will be calling Stepchange today on my break, Do you think I should mention this and clarify it with Stepchange adviser? hoping he/she will be slightly more optimistic?
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I think, now you are informed of the guidance, that when they ask:
'Have you ever made a preferential payment?'
you answer 'no'0 -
Hi
I was granted a DRO is April 2018. It was discharged12 months later.
I was careful to include every debt in the DRO. Since it finished, things have ticked along really well and were actually starting to look positive. That was until I went to rent a house recently.
I informed the letting agents of the DRO and they in turn informed the landlord. The landlord was happy to proceed given that I had been honest.
I completed the online reference details with Let Alliance who a few days later came back and said I had been dishonest and there was a live CCJ on my report. I was told the landlord had pulled out.
So I went back to the agents. Explained that the CCJ was included in my DRO as was in fact discharged under the terms of that. I also checked my Equifa report which clearly shows it is discharged even though the balance isn't zero. I sent evidence of the DRO, and a screenshot of the entry on my credit report to the agents who agreed that the CCJ was included in the DRO. They in turn spoke to Let Alliance who gave agreed to review my documented evidence and make a decision from there.
Unless Let Alliance agree that I have been discharged from this debt then the landlord will have no choice but to pull out as he cannot obtain the right level of insurance even though I have provided a guarantor.
So my question is this. Can Let Alliance refuse to accept the evidence I have provided? And also, how do I ensure that going forward, my credit report clearly shows that the CCJ has been discharged as part of the DRO. At the moment they look like two separate entities which is what appears to be causing the problem.
Thank you one and all :grouphug:0 -
Hello everyone,
Just a little update: I have sent out all the paper work that was asked in DRO application pack from StepChange. Will wait for their response now. Every step I take I feel relief thinking I might be able to get rid of this debt worries for good and start concentrating on things that actually matter in my life: My Daughter and my family!
While I'm here I have this question that keeps bothering me (It might sound slightly too over cautious - sorry!)
Let's say My DRO is approved and my income is exactly what I putted on my budget. Do I have to stick to exact numbers every month from budget? So for example if my budget says 180£ for groceries a month and I spend 160£ and use that remaining 20£ to buy shoes for my daughter. is this okay?
Or for example I added 10£ every month for optician but I don't go to optician every month, I go once a year for regular checkup and glasses.
I understand and I did read lot's of posts saying that no one checks each persons bank account and their monthly spending but I just want to be sure I'm doing everything as honest as I can.0 -
The answer is no. You spend what you need to spend. There should be an allowance (per year, divided by 12) for things like medicines, clothing, dentistry, Christmas presents. Nobody expects you to be spending on these things every month.
If you can save a lump sum during the DRO period then do so. I wouldn't go over £1000 but that's unlikely anyway.0 -
The answer is no. You spend what you need to spend. There should be an allowance (per year, divided by 12) for things like medicines, clothing, dentistry, Christmas presents. Nobody expects you to be spending on these things every month.
If you can save a lump sum during the DRO period then do so. I wouldn't go over £1000 but that's unlikely anyway.
Fair enough, Thank you!0
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