Dro advice please!!

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L5robson
L5robson Posts: 7 Forumite
in IVA & DRO
I am applying for a dro very soon but I was wondering what happens with my bank account. I have an overdraft so that will also be in the dro so I'm guessing I will have to apply for a basic bank account elsewhere. But when should I apply for one and also will all my benefits etc just be switched over or will I need to let them know for me to get paid into that account on time? Also I am now stopping my direct debits with all my debtors do I need to let them know that I'm not paying them or do I just ignore it and wait until I've done dro? (Should be about a week for me to apply). Not sure if anyone knows about this either but I have vehicle finance for my ex partner from when we were together I took it out for him as he couldn't be accepted. Hes been paying me the monthly payments since the start but now I am doing a dro will I get that wiped off? As itll be a weight off my shoulders incase he couldn't ever pay. Or if I do will they take the van? It is in his name.

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  • fatbelly
    fatbelly Posts: 20,492 Forumite
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    L5robson wrote: »
    I am applying for a dro very soon but I was wondering what happens with my bank account. I have an overdraft so that will also be in the dro so I'm guessing I will have to apply for a basic bank account elsewhere. But when should I apply for one and also will all my benefits etc just be switched over or will I need to let them know for me to get paid into that account on time? Also I am now stopping my direct debits with all my debtors do I need to let them know that I'm not paying them or do I just ignore it and wait until I've done dro? (Should be about a week for me to apply). Not sure if anyone knows about this either but I have vehicle finance for my ex partner from when we were together I took it out for him as he couldn't be accepted. Hes been paying me the monthly payments since the start but now I am doing a dro will I get that wiped off? As itll be a weight off my shoulders incase he couldn't ever pay. Or if I do will they take the van? It is in his name.

    Welcome to the main boards!

    If your overdrawn account is going in to the DRO, then wave goodbye to it now and get yourself a new account not connected to any of your debts. Doesn't have to be a basic account - what ever you can get. Don't do the DRO until you have switched - you don't want your benefits going into a frozen account.

    The vehicle finance (HP?) in your name needs to go in to the DRO. If he wants to keep the car he would have to talk to the company. They may agree to let him take over the payments.

    If it's a loan and not HP it's slightly different.
  • L5robson
    L5robson Posts: 7 Forumite
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    Oh I better do that now then!! But being in overdraft will they let me switch and leave the overdraft with the old bank? And it is a finance loan so not hp! So not sure how that works?
  • sourcrates
    sourcrates Posts: 28,878 Ambassador
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    L5robson wrote: »
    Oh I better do that now then!! But being in overdraft will they let me switch and leave the overdraft with the old bank? And it is a finance loan so not hp! So not sure how that works?

    You don’t use the switching service, you open an entirely new account independently.
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  • fatbelly
    fatbelly Posts: 20,492 Forumite
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    L5robson wrote: »
    And it is a finance loan so not hp! So not sure how that works?

    So it's a non-priority debt and the creditor has no rights over the car.

    Now there could be an issue here ... it seems that you were the purchaser and your ex is the registered keeper. There's a definite argument that you are still the owner and so it should be listed and valued at under £1000.

    Is that going to cause problems? Has your intermediary made any comment on it?
  • L5robson
    L5robson Posts: 7 Forumite
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    Okay then that's good to know. So I open up a new account completely and then let the benefits know to put it into that one instead?
    And yes unfortunately the loan is in my name but he is the keeper. And unfortunately it is worth over a 1000 so I really hope this doesn't mess with my dro. I don't care if they take the van away though and clear the debt as its nothing to do with me anyway really. Do you think I could get refused because of this? I'm going through someone who has done this before but they're not going to someone to get it done until Monday so I have to wait. I have also stopped paying all creditors now so do i need to let them know I'm not paying them or just ignore them?
  • fatbelly
    fatbelly Posts: 20,492 Forumite
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    L5robson wrote: »
    I'm going through someone who has done this before but they're not going to someone to get it done until Monday so I have to wait.
    That sounds a bit odd. Which organisation is doing your DRO and are you not talking direct to them?
  • L5robson
    L5robson Posts: 7 Forumite
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    No it's my old support worker who is going to do it for me and they will go through a professional dro person!
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