Applying for a DRO - Questions and Queires

Legacy_user · 1 September 2017 at 9:22AM

Delete - No longer need advice

sourcrates · 1 September 2017 at 2:29PM

Hi,

In answer to your questions :

(1) There is no requirement for you to wait 6 years before applying for a DRO, you can apply now.

(2) Once your DRO is approved, all your creditors are contacted by the insolvency service to make them aware of it, you will receive a conformation letter as well.

After that you wont hear from the IS or your creditors again, except if they send you a statement (which they are still required to do).
After 12 months your debts are wiped out, you dont get any conformation of this at all, so keep the DRO paperwork you are sent.

You only need to contact the IS if your circumstances change and you no longer meet the £50 limit, no checks are normally carried out on you after acceptance, its a voluntary process, but there are severe consequences for not playing by the rules.

(3) You should treat all creditors fairly, that normally means stop paying them anything, and tell them your applying for a DRO.

(4) Wont effect anyone else but you.

(5) Up until a few months ago it was a very quick process, less than a week, but i think a new system caused some problems, and i know stepchange quote around about a months waiting time at present, so not too long really.

(6) DRO`s only appear on the insolvency register.

Hope that helps.

sourcrates · 1 September 2017 at 4:13PM

Yes you will have to declare your IVA, its one of the questions in the application form.

Your answer wont be held against you dont worry.

Not a statement no, just a basic reason, for example marriage breakup/job loss etc.

As long as its less than £50 you qualify, its a simple yes/no answer.

As far as i am aware all they ask for is your last two payslips, not bank statements.

I would recommend you use stepchange or CAB as intermediary for your DRO.

sourcrates · 1 September 2017 at 4:40PM

Amy13 wrote: »

Thanks for replying!

I am going to go with Step Change.

My main worry now is they will be a problem with my application as I have used credit, up until this week so I am wondering if I need to wait? I haven't taken any new credit out though.

Using credit will not Barr you from applying, only disposing of assets or not treating creditors fairly are sources of potential problems.

Jr14 · 1 September 2017 at 5:45PM

I initially looking online at stepchange but never got sent the paperwork so have done it over the phone with cab. It's taken a while (2weeks ish) and mines not even been sent to the DRO unit yet I don't think

Do the DRO unit then send you a proper application out with a barcode to pay once they receive the info from cab do you know?
It's making me so anxious waiting!!

sourcrates · 1 September 2017 at 8:34PM

Jr14 wrote: »

I initially looking online at stepchange but never got sent the paperwork so have done it over the phone with cab. It's taken a while (2weeks ish) and mines not even been sent to the DRO unit yet I don't think
Do the DRO unit then send you a proper application out with a barcode to pay once they receive the info from cab do you know?
It's making me so anxious waiting!!

You will get a letter with a barcode, you pay the £90 fee, it's submitted, you get a response usually within a few days.

sourcrates · 2 September 2017 at 10:58AM

Amy13 wrote: »

I have had a look at the Step Change checklist.

There is a section to fill about a pension fund.

I do have a pension with my employer, this is where they make a contribution each month and so do I. The pension is with an external company not my employer. Is this what they are referring to?
I'm 36 so won't be getting my pension anytime soon.

Also, are your employers contacted? They wouldn't be a problem but I'm a private person and don't want everyone knowing my business!

Amy13 wrote: »

Are your account numbers the number on your cards? If so, one isn't matching up on noddle.

Unless you are able to now, or will become able to claim your pension rights in the next 12 months (which you wont), you can answer no to the pensions question, there is no employer contact.

Depends on what type of account it is, but usually thats the case yes.

sourcrates · 2 September 2017 at 11:19AM

Amy13 wrote: »

Thanks!

I have an account with Vanquis and I have checked my credit report on Noddle. I noticed the account number (was only showing the last 4 digits) was different to my card number. I have phoned them this morning to confirm which is the correct account number. I was told the card number is the account number and the other number (the one showing on the report) is their account number for me that they use just for their purposes. Seems unclear what my account number actually is. If I gave Step Change the card number and when my credit report was checked they would be a discrepancy.

Also, my wage slips show that I am paying into a Pension so would they not question this if I left it blank?

Simpley ask the creditor the correct account number.

You must make sure all details about your debts are accurate, they are not checked up on, the info you give them, is the info they work with.

You need a list of all your creditors, that list should contain account number, amount outstanding, and what type of debt it is, plus the creditors name and address.

You also need copies of each of your credit reports (Noddle/Experian/Equifax) all your accounts must be showing on your credit reports.

Before you physically submit the paperwork, you must ring each creditor and obtain an up to date balance of each account, this is to make certain you dont breach the 20k limit.

As i said, if you are not eligible to take your pension within the next 12 months, for DRO purposes, it can be ignored.

https://debtcamel.co.uk/is-your-pension-safe-in-a-dro/

fatbelly · 2 September 2017 at 11:49AM

Put both numbers on the application separated by a /

Your employer details are only on there in case there is an attachment to earnings that needs to stop. That's what I was told. No-one contacts the employer and the DRO teamdoes not see your wage slips.

Stepchange however may well want to see your wage slips, will get their own credit report(s) on you, and may want to put that pension plan in rather than make a false declaration. There is no downside to this. Again, what I've been told is that they are just checking that it is a valid pension and not someone squirrelling away thousands in a savings account or ISA, saying 'that's my pension'

sourcrates · 2 September 2017 at 12:11PM

Amy13 wrote: »

Also, on the Step Change checklist it didn't say I needed to send copies of the Credit Reports.

This is mainly for your own benefit so you dont accidentally miss an old debt you may of forgotten about.

sourcrates · 3 September 2017 at 11:31AM

Amy13 wrote: »

Thanks for the advice!

One more question -

My parents are going to be putting the house on the market within the next 12 months. They are wanting a smaller property (I would be going with them for now). They don't have a mortgage now, own the house outright and won't need a mortgage for the new property.

Would me being in a DRO have any impact on them being able to put the house on the market, selling the property and buying a new one?

No impact whatsoever.

Debt is unique to the individual, not a property, or to anyone else who is not the named debtor.

Applying for a DRO - Questions and Queires

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