Debt Relief Orders (DRO) - Information & help thread

gellerbing · 27 February 2018 at 8:34AM

Ive finally got all my paper work together and filled everything out ready to send back, but on the checklist and the agreement its asking for my client reference number. As far as im aware i haven't got one, I've checked through my application form, all the emails ive had and its not mentioned anywhere. Should i have one? If so how do i find out what it is? Will they still accept the application if i don't put the number on the form?
There is a web number in my debt remedy action plan, would that be it?

snowwhyte · 27 February 2018 at 5:23PM

I worked up my nerve and phoned the business debt line. I was on hold for forty minutes but finally got through to an advisor. We went through my figures and they want to include the money from my grandparents as part of my income. I'm still under the threshold for the DRO so they are sending me an application pack. They said that there is currently an eleven week wait so I should get my application in as soon as possible.

snowwhyte · 28 February 2018 at 8:18PM

I applied for a new bank account with Nationwide today. It said my application was accepted but the email they sent said they may need further information so will see if it goes through. If the application fails I am then eligible for their basic account.
I also got a phone call from Barclaycard today. I told them I was receiving advice from the National Debt line and gave them my reference number and they agreed to hold my interest for another month. They are very friendly and helpful but I hate phone calls in general and awkward ones in particular.

Damo66a · 9 March 2018 at 8:51PM

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

Twubble · 9 March 2018 at 10:10PM

Hi. With a DRO, you cannot have a car if it is worth over £1000.

fatbelly · 9 March 2018 at 11:20PM

Twubble wrote: »

Hi. With a DRO, you cannot have a car if it is worth over £1000.

Or to put it another way, if you own a car worth over £1000 you cannot have a DRO

Damo66a wrote: »

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

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 · 12 March 2018 at 4:01PM

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 · 12 March 2018 at 6:04PM

SuperSeagull wrote: »

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.

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.

kirkwood78 · 22 March 2018 at 9:27PM

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 · 22 March 2018 at 11:07PM

kirkwood78 wrote: »

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

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.

Debt Relief Orders (DRO) - Information & help thread

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