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    • fermi
    • By fermi 6th Jan 09, 11:34 AM
    • 39,669 Posts
    • 47,650 Thanks
    Thanks Fermi,

    Was trying to see if anyone mentioned it, sorry for stepping on anyones toes,
    Originally posted by cr1
    There is no "stepping on toes" here. All contributions and help are more than welcome.
    I'm a Board Guide on the Debt-Free Wannabe, Bankruptcy, Credit Cards and Loans boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Any views are mine and not the official line of Board guides are not moderators. If you spot an inappropriate or illegal post then please report it to

    Free/impartial debt advice: National Debtline | StepChange Debt Charity | Find your local CAB

    IVA & fee charging DMP companies: Profits from misery, motivated ONLY by greed
    • dalip
    • By dalip 6th Jan 09, 11:39 AM
    • 6,977 Posts
    • 8,620 Thanks
    I missed this,so thanks for the "bump". Just told my OH about it. He has debt of 10k and doing a DMP with CCCs of 70 a month,which will take 13 years to clear. We have no asSets,house and the car is worth less than 1k.

    Would certainly be worth him looking into. I feel a e-mail to DD coming on
    Free impartial debt advice available from: National Debtline - Tel: 0808 808 4000 | The Consumer Credit Counselling Service (CCCS) - Tel: 0800 138 1111 | Find your local Citizens Advice Bureau
    Laugh at yourself and others laugh with you.Laugh at others and you laugh alone. BSC No 107
    • creditpunch
    • By creditpunch 6th Jan 09, 12:13 PM
    • 283 Posts
    • 164 Thanks
    I think this is amazing!!! it sorts out students, low income earners, people who succumbed to loan sharks and door step lenders etc etc I wish it was available to me years ago when I was in sinking sand and I started the cycle of over commiting to cover student debt and then living

    Interest rates would go catastrophic though to cover the heightened risk of default etc. How would this be funded?

    It's a scary thought I hope they've done the maths right?
    Last edited by creditpunch; 06-01-2009 at 12:17 PM.

  • darrell
    student loans
    Keep up the excellent work chaps. Just thought I'd add that I am pretty certain that student loans are not included in the DRO scheme.
  • North East Derbyshire CAB
    Hi all.

    Following on from others, just a little update.

    We have very recently had official conformation that Citizens Advice has been awarded 'Competent Authority' status to approve and appoint DRO intermediares who will be authorised to complete eligible applications. We have also been given confirmation of training dates starting February 2009 with it looking very likely now that DROs will indeed be available from April 2009.

    We already have a number of clients were a DRO may be suitable and have adapted our mainstream advice to include DROs.

    What impact this welcome option will have remains to be seen but we believe it will be significant in a number of ways and may well be a godsend to those eligible (hope so).

    It is very likely that DROs may become another widely discussed subject on this forum and all that goes with that.

    Keep up the good work

    Last edited by North East Derbyshire CAB; 20-01-2009 at 1:47 PM.
    Visit our website at or find your local CAB.

    Other non-profit debt advice services:
    National Debtline: 0808 808 4000
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  • Mr E
    Should have posted the following in this thread rather than a new thread, just some info ...

    Mr E.
  • DON79
    BSC #215/No.1 Jan 09 Club
    • dvs
    • By dvs 23rd Jan 09, 10:10 PM
    • 845 Posts
    • 666 Thanks
    Whilst Debt Relief Orders are clearly going to be an easier and cheaper process for those with 'smaller' debts, I think it'll be only a matter of time before they'll be considered the equivalent of a bankruptcy. At least it's another option for some people.
  • Nigella
    Would have helped me.

    Luckily I got the court fees paid by fee remission and the Deposit from a previous employer's Benevolent Fund, otherwise I would have had a difficulty in raising the 500 or so.
  • North East Derbyshire CAB
    Hi everyone,

    A couple more useful/interesting links on Debt Relief Orders which include the Insolvency Service's anticipated application numbers!!

    Visit our website at or find your local CAB.

    Other non-profit debt advice services:
    National Debtline: 0808 808 4000
    Consumer Credit Counselling Service (CCCS): 0800 138 1111
    • debt doctor
    • By debt doctor 27th Jan 09, 8:34 PM
    • 4,538 Posts
    • 6,228 Thanks
    debt doctor
    ...interesting thoughts Bat.

    I am led to believe that 'normal household goods' are ignored as in BR.

    Also i wonder what allowances will be made about income re the 50 pm disposable income ? Is it BR type ? ie holidays, haircuts or as I am led to believe, the less generous BBA figures ? Does a partners income count ?

    I and some of my colleagues are going to be registered intermediaries, training in mid March !! - cutting it a bit fine me thinks ! I should think some of the NED CAB guys will be too.


    Debt Doctor, Debt caseworker, Citizens' Advice Bureau .
    Impartial debt advice services: Citizens Advice Bureau Find your local CAB *** National Debtline - Tel: 0808 808 4000*** BSC No. 100 ***
  • creditisevil
    Make a one off payment to bring debts below 15k?
    DebtDoctor, I am eagerly waiting for more information on the debt relief orders, and I'm very grateful for you sharing information that you have as it comes available.

    I have unsecured debts of 18,000, built up over the last 10 years, and due to life events I now have a low income and can't make the minimum repayments. I have no assets. Embarrassingly, I've been asking a third party to feed the monkey for the last month or two, holding out for information about this scheme. They've hinted they may stump up a payment to me to bring me below the 15k barrier for debt relief order, to avoid me going bankrupt. These are my only two options.

    Anyway, my question is:
    I'd be interested to hear anyone's thoughts on whether a payment from a third party to bring me under the 15k barrier would be viewed as okay? After all, the creditors get a small payment they wouldn't have had otherwise. On the other hand, the creditors could get greedy and think if a third party can contribute 3k then maybe they can somehow squeeze more money from the third party (which would be distressing and in the end wouldn't actually succeed).

    I'm sure there are many others who's debts are a bit over the 15k barrier and working out how they can still access this scheme. Anyone's thoughts would be appreciated. DebtDoctor, could you possibly ask about this at the training course?

    Thanks in advance for the great advice and spirit of helpfulness.
    • dvs
    • By dvs 30th Jan 09, 4:11 PM
    • 845 Posts
    • 666 Thanks
    I'd be interested to hear anyone's thoughts on whether a payment from a third party to bring me under the 15k barrier would be viewed as okay?
    Originally posted by creditisevil
    I think providing the 3,000 is distributed fairly among your creditors and assuming that the third party who is providing the funds is giving it to you, then I don't see a problem. I use the word giving because they can't be a creditor or your debts would still be above 15,000.
  • creditisevil
    Thanks for your opinion on this, quite right, any payment to bring me under the 15k limit would need to be a gift.

    Of course the problem is the full details of the scheme haven't been released yet. I would need to be certain that receiving a gift from a third party would result in a debt relief order and not just bankruptcy due to the debt relief order being not allowed. I hope this doesn't sound like worming my way out of paying - I would only receive a gift if it was so that I don't have to go bankrupt.

    I hope I haven't hijacked this thread - it supposed to be about debt relief orders in general not this particular aspect of it.
    • dvs
    • By dvs 31st Jan 09, 11:51 AM
    • 845 Posts
    • 666 Thanks
    It's fine to discuss topic here (well fine with me anyway!)

    I really don't see a problem. The OR wouldn't have a problem if you owed 100,000 and somehow (perhaps through an inheritance or bonus) received 10,000 which you used to reduce your debts before going bankrupt. As long as it's distributed fairly (i.e. the people you owe the most to get more than the people you owe less to).

    As far as I can see, the advantages to DROs is that they should be an easier process (although it is a new process so will have it's teething problems no doubt), it'll be cheaper and may not have the same stigma as bankruptcy. However, they are very similar to bankruptcy in terms of restrictions etc. I think it'll only be a matter of time before financial companies will ask the question Have you ever been made bankrupt, entered into an IVA or DRO? So mortgages or other financial products may be difficult to obtain.If you have around 15,000 worth of debt, then it makes sense to go for a DRO but I wouldn't go borrowing large amounts money off a relative or friend because that same amount could be written off in a bankruptcy. Obviously, if there are specific reasons for you not wanting to go bankrupt (perhaps your job or not wanting people to know about your bankruptcy), then it might be better to go towards a DRO. Also I guess it depends on what assets you have etc.
  • creditisevil
    I agree, I think DROs will be viewed in much the same light as bankruptcy by financial companies. However, I think that the average joe public probably won't get to hear of debt relief orders, and so if they found out, wouldn't view it with the same stigma as bankruptcy.

    One thing i'm concerned about is if I apply for a job in the future, and the employer googles my name, and up comes 'bankruptcy', then they run a mile, mistakingly thinking I must have ripped people off or been dishonest with money or just plain reckless (which we all know is not true for most bankruptcies). However, if they find I've had a debt relief order, they just assume I defaulted on a car loan or something a long time ago.

    Or perhaps with the consumer credit bubble bursting, maybe future attitudes to DROs or bankruptcies may be different, given the amount of young people in trouble with debt and with no assets to offset this?
    • debt doctor
    • By debt doctor 2nd Feb 09, 10:33 AM
    • 4,538 Posts
    • 6,228 Thanks
    debt doctor
    Hi all,

    The latest addition to the 'licenced intermediary' list for DRO's is................. Baines & Ernst - the well known DMP and IVA rip off company !

    I can see their advert now....' Little known piece of legislation, DRO's, wipe out all your debts.......' then when they find the applicant does not fit the criteria ....." but we can offer you one of our dodgy DMP'S OR IVA's

    This is what their web site says about BR...........

    The basic criteria for bankruptcy is:
    • If you have a very low or negative disposable income
    • If you cannot afford to make repayments on your debts
    • No it is NOT !!!! - the basic criteria is that you are insolvent, meaning you cannot pay your debts as they fall due and / or your liabilities outway your assets.
    • If you have disposable income you will always be better off in BR than an IVA ( unless other reasons make BR unwise)
    The last line infers that if you CAN afford to make repayments to your debts then an IVA or other would be better !

    ...and heres some more from their website on 'IVA's FAQ's'......

    Do I have to be in full time employment?
    No. To enter into an IVA, you only need to have a surplus of income above what you need to live on.

    Does it make a difference if I am a homeowner or tenant?
    No. It makes no difference whether you are a tenant or homeowner or even if you are still living with your parents.

    Would an IVA be in the best interests of those above ???? Hardly ever !


    Debt Doctor, Debt caseworker, Citizens' Advice Bureau .
    Impartial debt advice services: Citizens Advice Bureau Find your local CAB *** National Debtline - Tel: 0808 808 4000*** BSC No. 100 ***
    • tigerfeet2006
    • By tigerfeet2006 2nd Feb 09, 11:49 AM
    • 13,826 Posts
    • 29,891 Thanks
    Bl00dy he11 DD, how the bleeding heck did they manage that? Surely the powers that be can see that it is not a good idea :confused:

    That advise on their website is so aaaarrrgh!!!!
    The only stupid question is an unasked one
    Loving life as a Kernow Hippy
  • glam jan 56
    hi there what happens with a d.r.o. if myself has 19.000 debt an hubby 12.000 will i be made bankrupt an hubby gets an d.r.o.
    • debt doctor
    • By debt doctor 15th Feb 09, 11:30 AM
    • 4,538 Posts
    • 6,228 Thanks
    debt doctor

    Latest information is that the 90 fee can be paid for in 6 monthly instalments via paypoint, so the only immediate upfront money required will be 15 !

    Debt Doctor, Debt caseworker, Citizens' Advice Bureau .
    Impartial debt advice services: Citizens Advice Bureau Find your local CAB *** National Debtline - Tel: 0808 808 4000*** BSC No. 100 ***
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