DRO and recent debts.
Hi. I've ended up in a terrible state over my debt.
I have mental illness and was hoping to return to work.
I have a long standing CC debt, owe the utilities money. What worries me is that 2 months ago I bought a bed and other household essentials on catalogue accounts. I've always made the minimum payments on the Credit Card, and paid off around %25 on the others. But I haven't paid the water in months.
I'm really worried that taking out debt so recently will prevent me from getting the DRO, or that I have made preferential payments.
I'm normally quite good with T's&C's but the DRO stuff is quite hard to find and understand.
It's so hard for me to talk to people over the phone or in person, so I thought I'd ask rather than end up wasting my time and being accused of something awful.
Thanks!
I have mental illness and was hoping to return to work.
I have a long standing CC debt, owe the utilities money. What worries me is that 2 months ago I bought a bed and other household essentials on catalogue accounts. I've always made the minimum payments on the Credit Card, and paid off around %25 on the others. But I haven't paid the water in months.
I'm really worried that taking out debt so recently will prevent me from getting the DRO, or that I have made preferential payments.
I'm normally quite good with T's&C's but the DRO stuff is quite hard to find and understand.
It's so hard for me to talk to people over the phone or in person, so I thought I'd ask rather than end up wasting my time and being accused of something awful.
Thanks!
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Comments
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Hi Mark
I don't think this is something you should be worried about at this stage. Although creditors can object to a DRO being made, it is always the Insolvency Service who has the final say. I know talking about this can be a concern but a DRO intermediary (the person who works between you and the Insolvency Service) is there to help, not judge. They'll talk you through the whole process and advise you of any risks of your DRO not being accepted.
If you think you meet the DRO conditions you can get in touch with one of the organisations who has DRO intermediaries. You can find those here https://www.gov.uk/government/publications/getting-a-debt-relief-order/getting-a-debt-relief-order. Look under the section 'Find a debt adviser'.
Susie
@natdebtlineWe work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps0 -
I'm normally quite good with T's&C's but the DRO stuff is quite hard to find and understand.
This is true, but the good news is very few are rejected.
The National Debline guide is a good summary
https://www.nationaldebtline.org/EW/factsheets/Pages/debtrelieforders/droadvice.aspx
I would advise, though, in the run-up to your DRO that you pay nothing to your creditors and then put the whole lot into your DRO.
Do you pay council tax? The whole year's tax can be included as a qualifying debt once you have lost the right to pay in instalments, which usually happens in June if you don't pay.0
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