DRO or Bankruptcy.
Inch_High_Private_Eye
Posts: 32 Forumite
Hiya
Could I get some clarification on a few questions regarding a DRO.
I'm helping a friend who has had a big change in living circumstances out of their control.
I gained some advice yesterday regarding a DRO from a debt help company on line who advised as my friend is employed the DRO would have a slim chance of being agreed and they have never known anyone achieve it while being employed.
Is this normally the case is their a ratio of success or failure when employed?
There is no cash remaining of significant amount most definately not £50 as teh DRO requests.
An IVA as the advise by the help company is at £20 a week on the debt amount so this is not possible.
There has already been a repayment agreement of £100 a month through a debt management company but due to circumstances that has had to end as none of it is now available as there is rent being paid by one person on their own.
We haven't applied to that debt management company for the DRO as thought due to the failure of the £100 a month they would be biased and refuse to help further. ( may now consider asking them due to the info we obtained yesterday)
We were also advised yesterday of bankruptcy of which we were told the fee of £650 to apply is needed and their legal services of £680, we weren't actually told that there is an option on line to do it yourself? ( found it after the call)
In the call It was helpful at first but then became very pushy like a sales call, we were not going to be privy to any of our options available with them unless we agreed to make a decision to go into an agreement there and then...it felt like we were back in the Old Timeshare cold call selling days.
Many sentences were to push the decision on an already fragile situation but it wasn't something we felt comfortable doing making an agreement with out having time to sit and discuss the process and all the options fully.
We were advised there could be an attachment of earnings set in which would be a shame as this person would loose their home and there place of safety for their children that they have with them 4 nights a week.
I am thinking its strange how you can apply for bankruptcy on line by yourself but not a DRO?
Could I get some clarification on a few questions regarding a DRO.
I'm helping a friend who has had a big change in living circumstances out of their control.
I gained some advice yesterday regarding a DRO from a debt help company on line who advised as my friend is employed the DRO would have a slim chance of being agreed and they have never known anyone achieve it while being employed.
Is this normally the case is their a ratio of success or failure when employed?
There is no cash remaining of significant amount most definately not £50 as teh DRO requests.
An IVA as the advise by the help company is at £20 a week on the debt amount so this is not possible.
There has already been a repayment agreement of £100 a month through a debt management company but due to circumstances that has had to end as none of it is now available as there is rent being paid by one person on their own.
We haven't applied to that debt management company for the DRO as thought due to the failure of the £100 a month they would be biased and refuse to help further. ( may now consider asking them due to the info we obtained yesterday)
We were also advised yesterday of bankruptcy of which we were told the fee of £650 to apply is needed and their legal services of £680, we weren't actually told that there is an option on line to do it yourself? ( found it after the call)
In the call It was helpful at first but then became very pushy like a sales call, we were not going to be privy to any of our options available with them unless we agreed to make a decision to go into an agreement there and then...it felt like we were back in the Old Timeshare cold call selling days.
Many sentences were to push the decision on an already fragile situation but it wasn't something we felt comfortable doing making an agreement with out having time to sit and discuss the process and all the options fully.
We were advised there could be an attachment of earnings set in which would be a shame as this person would loose their home and there place of safety for their children that they have with them 4 nights a week.
I am thinking its strange how you can apply for bankruptcy on line by yourself but not a DRO?
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Comments
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managed to get it confirmed that being employed doesn't stop a DRO being issued or lower chances its the Income and expenditure that dictates what the outcome is. Shows the difference between a money grabbing company and a helpfull one DRO dont gain them much profit.0
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Inch_High_Private_Eye wrote: »
Could I get some clarification on a few questions regarding a DRO.
I'm helping a friend who has had a big change in living circumstances out of their control.
I gained some advice yesterday regarding a DRO from a debt help company on line who advised as my friend is employed the DRO would have a slim chance of being agreed and they have never known anyone achieve it while being employed.
Total and utter nonsense, as you have now discovered. Please put in a complaint.Inch_High_Private_Eye wrote: »There is no cash remaining of significant amount most definately not £50 as teh DRO requests.
An IVA as the advise by the help company is at £20 a week on the debt amount so this is not possible.
There has already been a repayment agreement of £100 a month through a debt management company but due to circumstances that has had to end as none of it is now available as there is rent being paid by one person on their own.
We haven't applied to that debt management company for the DRO as thought due to the failure of the £100 a month they would be biased and refuse to help further. ( may now consider asking them due to the info we obtained yesterday)
We were also advised yesterday of bankruptcy of which we were told the fee of £650 to apply is needed and their legal services of £680, we weren't actually told that there is an option on line to do it yourself? ( found it after the call)
In the call It was helpful at first but then became very pushy like a sales call, we were not going to be privy to any of our options available with them unless we agreed to make a decision to go into an agreement there and then...it felt like we were back in the Old Timeshare cold call selling days.
Many sentences were to push the decision on an already fragile situation but it wasn't something we felt comfortable doing making an agreement with out having time to sit and discuss the process and all the options fully.
We were advised there could be an attachment of earnings set in which would be a shame as this person would loose their home and there place of safety for their children that they have with them 4 nights a week.
I am thinking its strange how you can apply for bankruptcy on line by yourself but not a DRO?
The bankruptcy fee is £680 and there is no remission. The fee for a DRO is £90
It seems he meets the other criteria for a DRO so if the debt total is <£20k there seems no reason to prefer bankruptcy, unless you can suggest one.
There is no attachment to earnings on either strategy, though bankruptcy could attract an Income Payments Order if the monthly surplus is >£20.
How about running this past National Debtline, who have no product to sell?0 -
Inch_High_Private_Eye wrote: »managed to get it confirmed that being employed doesn't stop a DRO being issued or lower chances its the Income and expenditure that dictates what the outcome is. Shows the difference between a money grabbing company and a helpfull one DRO dont gain them much profit.
As you have found out, Debt management companies exist for the sole purpose of selling whichever debt solution they are touting, and of course adding there cut to the fee structure they want you to pay.
The advice they give is questionable at best, down right lies at worst, you should always take advice from someone who does not benefit from the advice they give you, forums such as this for example, or the major debt charities, National Debtline, and CAB are the recommended places to go.
Dot.Gov websites also give you the official rundown.I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter0
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