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    • TRX808
    • By TRX808 14th Jan 20, 2:45 PM
    • 13Posts
    • 0Thanks
    TRX808
    DRO Questions
    • #1
    • 14th Jan 20, 2:45 PM
    DRO Questions 14th Jan 20 at 2:45 PM
    Hello everyone,

    I have been reading this forum for quite a while now to gather as much information as I can, Finally decided to sign up on forum and post few questions (sorry if any of them might sound bit too obvious or silly)

    I have a debt of around 10.000 I did online tool with Stepchange and was recommended DRO

    First question: I have: two of this debts are personal loans from "lendable" and "Zopa" can this be included in DRO? (Just not 100% certain as they are p2p lending companies)

    Second Question: I have never missed any payment on any of my debts, My partner helps out by covering all the grocery costs and certain bills so can manage and make ends meet every month with my debt. right the question.... Can I apply for DRO and still keep on making payments until it's approved? I understand everyone recommends to stop payments but I just do not want all the nightmare of being chased and called at work etc. So, Can i wait until DRO is approved and creditors are notified of my DRO and then stop payments?

    Third question: We are renting from private Landlord, have no car, no savings, etc. Only thing I can think of as an asset over 1000 is the PC (computer) I have built couple of years ago. so 3 questions here on this really: a) Does this count as an asset I have to declare on application? b) the purchase was actually made as "personal finance" so this is not "hire purchase" right? (because I answered "no" on that question if i have hire purchase loan) c) I am still paying for this personal finance but I do not want to include this on my DRO as there is only few months left and it will be finished. can i leave it out? (it won't get me anywhere near 20k threshold even if I would include it in DRO)

    Fourth Question: Let's say my application is approved: then i can actually take over some expenses and actually start to split grocery shopping and clothing for our daughter etc. my question is what is the restrictions? can we still go and visit friends and family abroad? (not a fancy all inclusive holiday or anything)

    Again, I'm very sorry if any of this questions sound too obvious, I just want to be sure before I go ahead with whole process.
Page 1
    • TRX808
    • By TRX808 14th Jan 20, 3:02 PM
    • 13 Posts
    • 0 Thanks
    TRX808
    • #2
    • 14th Jan 20, 3:02 PM
    • #2
    • 14th Jan 20, 3:02 PM
    And while I have decided to post here I'll also add my expenditure budget

    Income

    1340 pet month (wages) no additional income at all

    (Though my partner receives child benefit which is around 82 a month but I do not have to include this as "my" income right?)

    Rent: 700 (total rent is 1100 but since my partner only works part time I pay bigger amount)
    Council tax: 54 (My half share between me and my partner)
    Electricity: 26 (I pay this on my own for whole property)
    Gas: 26 (I pay this on my own for whole property)
    Water: 15 (My half share between me and my partner)
    Groceries: 180 (My half share between me and my partner)
    Internet broadband and Mobile: 70
    Travel: 80
    Meals At work: 40
    Clothing: 50
    Laundry: 10
    Haircut: 15
    Emergency fund: 10
    hobbies and entertainment: 20

    Left: 44

    Thanks again in advance
    • TRX808
    • By TRX808 14th Jan 20, 8:01 PM
    • 13 Posts
    • 0 Thanks
    TRX808
    • #3
    • 14th Jan 20, 8:01 PM
    • #3
    • 14th Jan 20, 8:01 PM
    Sorry to bombard with so many questions but I just keep on reading forums over and over again, can't concentrate, can't eat properly and can't sleep at night.

    Back to 1000 assets, on my spare time (when debts not used to drive me crazy and demotivate me) I make music. Long story short as I mentioned in above post I have PC, which I bought on personal finance over 2 years ago and at that time it was around 1200 I also have few instruments which in total (with pc) might be worth around 1500 so I guess this qualifies as a asset which takes me over 1000 threshold = I don't really qualify for DRO?

    Thanks again and sorry for so many questions
    • sourcrates
    • By sourcrates 14th Jan 20, 9:04 PM
    • 19,141 Posts
    • 18,068 Thanks
    sourcrates
    • #4
    • 14th Jan 20, 9:04 PM
    • #4
    • 14th Jan 20, 9:04 PM
    Assets are classed as cash assets, no one wants your old guitar or pc.
    You can have 1000 in cash or other assets, a car worth 1000, must not be a homeowner, and you must meet the 50 limit on your disposable income.

    No one comes round to check, don’t overthink things.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File and Ratings, Bankruptcy And Living With It, boards. "I volunteer to help get your forum questions answered and keep the forum running smoothly".
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to:
    forumteam@moneysavingexpert.com.
    Any views expressed are mine and not the official line of MoneySavingExpert.com.
    For free debt advice, contact either : Stepchange, National Debtline, CitizensAdviceBureaux.
    • TRX808
    • By TRX808 17th Jan 20, 8:00 PM
    • 13 Posts
    • 0 Thanks
    TRX808
    • #5
    • 17th Jan 20, 8:00 PM
    • #5
    • 17th Jan 20, 8:00 PM
    No one?
    • sourcrates
    • By sourcrates 17th Jan 20, 9:32 PM
    • 19,141 Posts
    • 18,068 Thanks
    sourcrates
    • #6
    • 17th Jan 20, 9:32 PM
    • #6
    • 17th Jan 20, 9:32 PM
    No one?
    Originally posted by TRX808
    Absolutely no one, zilch, nada, niet ein ➰
    I'm a Board Guide on the Debt-Free Wannabe, Credit File and Ratings, Bankruptcy And Living With It, boards. "I volunteer to help get your forum questions answered and keep the forum running smoothly".
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to:
    forumteam@moneysavingexpert.com.
    Any views expressed are mine and not the official line of MoneySavingExpert.com.
    For free debt advice, contact either : Stepchange, National Debtline, CitizensAdviceBureaux.
    • fatbelly
    • By fatbelly 18th Jan 20, 3:00 PM
    • 14,583 Posts
    • 11,691 Thanks
    fatbelly
    • #7
    • 18th Jan 20, 3:00 PM
    • #7
    • 18th Jan 20, 3:00 PM
    90 doesn't buy much of anyone's time at the Official Receiver.
    • TRX808
    • By TRX808 20th Jan 20, 10:53 AM
    • 13 Posts
    • 0 Thanks
    TRX808
    • #8
    • 20th Jan 20, 10:53 AM
    • #8
    • 20th Jan 20, 10:53 AM
    Thanks a lot for your replays!
    After reading through a lot of threads here you can not imagine (both of you) how much you are helping out people like me with your knowledge! Thank you!!!

    Right, I will probably receive DRO application pack within next few days from stepchange.

    I still have few questions

    Does my budget look okay? (My partner earns 1100 a month) + child benefit around 83 a month

    I just checked credit report and PC I was referring to earlier on personal finance appears on a credit file. Do I have to include this in DRO application? or can I leave it out?

    have a great week ahead everyone
    • fatbelly
    • By fatbelly 20th Jan 20, 4:30 PM
    • 14,583 Posts
    • 11,691 Thanks
    fatbelly
    • #9
    • 20th Jan 20, 4:30 PM
    • #9
    • 20th Jan 20, 4:30 PM
    Income

    1340 pet month (wages) no additional income at all

    (Though my partner receives child benefit which is around 82 a month but I do not have to include this as "my" income right?)

    Rent: 700 (total rent is 1100 but since my partner only works part time I pay bigger amount)
    Council tax: 54 (My half share between me and my partner)
    Electricity: 26 (I pay this on my own for whole property)
    Gas: 26 (I pay this on my own for whole property)
    Water: 15 (My half share between me and my partner)
    Groceries: 180 (My half share between me and my partner)
    Internet broadband and Mobile: 70
    Travel: 80
    Meals At work: 40
    Clothing: 50
    Laundry: 10
    Haircut: 15
    Emergency fund: 10
    hobbies and entertainment: 20

    Left: 44

    Thanks again in advance
    Originally posted by TRX808
    Does my budget look okay? (My partner earns 1100 a month) + child benefit around 83 a month

    I just checked credit report and PC I was referring to earlier on personal finance appears on a credit file. Do I have to include this in DRO application? or can I leave it out?

    have a great week ahead everyone
    Originally posted by TRX808
    You're going to have to be guided by your intermediary at Stepchange. I think they are going to want to produce a joint financial statement and then split it between you proportionately.

    You are right that your income is yours; hers is hers. But you are paying a 7/11 share of the rent, half share of council tax, water and groceries and 100% of the electricity and gas. Your proportion of the expenses needs to be the proportion of your incomes.

    Commenting on the actual numbers, electricity, gas and water look low to me, groceries high but probably OK, clothing probably too high unless you're in a profession with some sort of dress code. If you have contents insurance and a TV licence you can include those. Id be happy with 20 per month for gifts. I guess you do have people you buy presents for.

    What is travel? Do you have any pets?

    The finance is a debt. If this is curry's or similar I think it's just regarded as a loan.
    Last edited by fatbelly; 20-01-2020 at 4:44 PM.
    • TRX808
    • By TRX808 20th Jan 20, 5:08 PM
    • 13 Posts
    • 0 Thanks
    TRX808
    You're going to have to be guided by your intermediary at Stepchange. I think they are going to want to produce a joint financial statement and then split it between you proportionately.

    You are right that your income is yours; hers is hers. But you are paying a 7/11 share of the rent, half share of council tax, water and groceries and 100% of the electricity and gas. Your proportion of the expenses needs to be the proportion of your incomes.

    Commenting on the actual numbers, electricity, gas and water look low to me, groceries high but probably OK, clothing probably too high unless you're in a profession with some sort of dress code. If you have contents insurance and a TV licence you can include those. Id be happy with 20 per month for gifts. I guess you do have people you buy presents for.

    What is travel? Do you have any pets?

    The finance is a debt. If this is curry's or similar I think it's just regarded as a loan.
    Originally posted by fatbelly

    Thanks for your replay Fatbelly

    Clothing I originally putted 40 but Stepchange online tool has "suggestion" option and when I clicked on that It suggested 59 (Which I was surprised too, don't remember last time I spent 59 per month on clothing)

    Electricity And Gas I am switching every year to keep it as low as possible (Currently I'm paying direct debt to E-on for both gas and electricity 52 a month)

    water rates come twice a year and If i'm honest I have no idea how they calculate it

    Travel = travelling to work on pay as you go by bus 4 times a week and taking daughter to (free) Softplay every sunday to central London

    No pets

    It wasn't currys but finance was provided by Hitachi finance (I'm just afraid they would not ask for my PC back which I really do need to complete online modules and do researches for work time to time)

    So back to budget, I will have to provide my partners payslips?
    • fatbelly
    • By fatbelly 20th Jan 20, 6:21 PM
    • 14,583 Posts
    • 11,691 Thanks
    fatbelly
    It wasn't currys but finance was provided by Hitachi finance (I'm just afraid they would not ask for my PC back which I really do need to complete online modules and do researches for work time to time)

    So back to budget, I will have to provide my partners payslips?
    Originally posted by TRX808
    Still likely to be a loan so it goes into a DRO and the PC stays as yours, within your asset limit.

    Partners payslips? That would be up to stepchange whether they need to see these.
    • TRX808
    • By TRX808 20th Jan 20, 8:49 PM
    • 13 Posts
    • 0 Thanks
    TRX808
    Still likely to be a loan so it goes into a DRO and the PC stays as yours, within your asset limit.

    Partners payslips? That would be up to stepchange whether they need to see these.
    Originally posted by fatbelly
    Thanks for replaying.

    Do you think it's a good idea to wait for DRO application Pack and then give a call to Stepchange?

    Also, while waiting for all this to get finally sorted (I know it's not done overnight) I keep going through some worse case scenarios in my head and imagining why would they reject the Application or not submit it at all (I know i'm just overthinking things but it's not easy to take my head out of sand after almost 10 years of paying debts and surviving)

    I've got one more question, about 6 month ago I took out Loan of 5000 having "debt consolidation" in mind.
    from that 5000 I settled one loan which was around 2000 and paid rest on credit card which I also paid off fully and closed. Does this count as preferential payment? even tho both of the "old" loan and credit card is fully settled and gone?
    • TRX808
    • By TRX808 20th Jan 20, 8:52 PM
    • 13 Posts
    • 0 Thanks
    TRX808
    For those just having a look on this thread and thinking of going through DRO,
    I will keep on posting here updates regularly of my whole experience of this process

    Least I can do to contribute back to this great forum.
    • TRX808
    • By TRX808 21st Jan 20, 3:31 PM
    • 13 Posts
    • 0 Thanks
    TRX808
    Thanks for replaying.

    Do you think it's a good idea to wait for DRO application Pack and then give a call to Stepchange?

    Also, while waiting for all this to get finally sorted (I know it's not done overnight) I keep going through some worse case scenarios in my head and imagining why would they reject the Application or not submit it at all (I know i'm just overthinking things but it's not easy to take my head out of sand after almost 10 years of paying debts and surviving)

    I've got one more question, about 6 month ago I took out Loan of 5000 having "debt consolidation" in mind.
    from that 5000 I settled one loan which was around 2000 and paid rest on credit card which I also paid off fully and closed. Does this count as preferential payment? even tho both of the "old" loan and credit card is fully settled and gone?
    Originally posted by TRX808
    Update on this: Called CAB and Steve from CAB said: Yes this will be considered as a preferential payment and I will have to mention this to adviser then he said that adviser might still submit application but Insolvency service might put "Debt relief restrictions order" on me.

    It is really a shame because when i took that loan out I was doing slightly better financially as my wife was still on maternity leave so I was working full time (now part time) And I was trying to cover loan and credit card with High interest with smaller interest loan, plus I had absolutely no idea there was help available for debts.
    Last edited by TRX808; 21-01-2020 at 3:34 PM.
    • fatbelly
    • By fatbelly 21st Jan 20, 7:08 PM
    • 14,583 Posts
    • 11,691 Thanks
    fatbelly
    Update on this: Called CAB and Steve from CAB said: Yes this will be considered as a preferential payment and I will have to mention this to adviser then he said that adviser might still submit application but Insolvency service might put "Debt relief restrictions order" on me.

    It is really a shame because when i took that loan out I was doing slightly better financially as my wife was still on maternity leave so I was working full time (now part time) And I was trying to cover loan and credit card with High interest with smaller interest loan, plus I had absolutely no idea there was help available for debts.
    Originally posted by TRX808
    I think Steve is a bit of a pessimist.

    A DRRO is a very rare beast

    If, during the course of any enquiries, the Official Receiver finds that the debtor has been dishonest, either before or during the period of the DRO, or that the debtor has behaved irresponsibly, the Official Receiver may apply to Court for a Debt Relief Restriction Order (DRRO) or come to an agreement with the debtor to give a Debt Relief Restriction Undertaking (DRRU).
    Have you been dishonest?
    Have you behaved irresponsibly?

    As for a preference, the guidance says

    It is not possible to state precisely what might fall into this category, as any preference will depend on the facts and determined on a case by case basis. In reaching a decision on whether to approve or decline a DRO application, the Official Receiver will have to consider the amount of the payment, whether it would have altered the financial position had it not happened, consider the timing and the reason behind the payment. Intermediaries should be aware that payments to family or friends who have lent money are most likely to be considered preferential.
    so I am surprised that Steve can be so authoritative.

    Did you take out the loan deliberately to put the other lender and credit card in a better position because you knew you were insolvent and about to go into a Debt Relief Order?

    If you talk again to Steve, please tell him to read Insolvency Service Guidance and put his Citizens Advice factsheets in the shredder.
    Last edited by fatbelly; 21-01-2020 at 7:17 PM.
    • TRX808
    • By TRX808 22nd Jan 20, 9:53 AM
    • 13 Posts
    • 0 Thanks
    TRX808
    Have you been dishonest?
    Have you behaved irresponsibly?

    Absolutely not.

    Did you take out the loan deliberately to put the other lender and credit card in a better position because you knew you were insolvent and about to go into a Debt Relief Order?

    No, My financial situation was slightly better and I was just trying to make it bit easier for me and my family so i would have something left for us end of the month. and I had absolutely no idea there was such a help available for people in debt - let alone knowing anything about DRO at all.

    If you talk again to Steve, please tell him to read Insolvency Service Guidance and put his Citizens Advice factsheets in the shredder.

    Ha, Will do! Thanks again for your response, it helps a lot through out this whole process!
    Will be calling Stepchange today on my break, Do you think I should mention this and clarify it with Stepchange adviser? hoping he/she will be slightly more optimistic?
    • fatbelly
    • By fatbelly 22nd Jan 20, 12:26 PM
    • 14,583 Posts
    • 11,691 Thanks
    fatbelly
    I think, now you are informed of the guidance, that when they ask:

    'Have you ever made a preferential payment?'

    you answer 'no'
    • Pianothing
    • By Pianothing 24th Jan 20, 7:21 AM
    • 32 Posts
    • 6 Thanks
    Pianothing
    DRO the aftermath
    Hi

    I was granted a DRO is April 2018. It was discharged12 months later.

    I was careful to include every debt in the DRO. Since it finished, things have ticked along really well and were actually starting to look positive. That was until I went to rent a house recently.

    I informed the letting agents of the DRO and they in turn informed the landlord. The landlord was happy to proceed given that I had been honest.

    I completed the online reference details with Let Alliance who a few days later came back and said I had been dishonest and there was a live CCJ on my report. I was told the landlord had pulled out.

    So I went back to the agents. Explained that the CCJ was included in my DRO as was in fact discharged under the terms of that. I also checked my Equifa report which clearly shows it is discharged even though the balance isn't zero. I sent evidence of the DRO, and a screenshot of the entry on my credit report to the agents who agreed that the CCJ was included in the DRO. They in turn spoke to Let Alliance who gave agreed to review my documented evidence and make a decision from there.

    Unless Let Alliance agree that I have been discharged from this debt then the landlord will have no choice but to pull out as he cannot obtain the right level of insurance even though I have provided a guarantor.

    So my question is this. Can Let Alliance refuse to accept the evidence I have provided? And also, how do I ensure that going forward, my credit report clearly shows that the CCJ has been discharged as part of the DRO. At the moment they look like two separate entities which is what appears to be causing the problem.

    Thank you one and all
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