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  • FIRST POST
    • Truegho
    • By Truegho 10th Sep 09, 2:10 PM
    • 792Posts
    • 230Thanks
    Truegho
    What Is this New "Mini-Bankruptcy" Law?
    • #1
    • 10th Sep 09, 2:10 PM
    What Is this New "Mini-Bankruptcy" Law? 10th Sep 09 at 2:10 PM
    I have heard that the government recently introduced a kind of "mini-bankruptcy" law, that costs just 90 and is not as long-winded legally as the conventional bankrupty process. Apparently, the CAB arrange all this for you, and it completely erases all your debts and you start again with a clean slate.

    Has anybody applied for this? If so, do you recommend this as the BEST option for anybody who is unemployed and has fell behind with all their creditors?
Page 1
  • Holes in my pocket
    • #2
    • 10th Sep 09, 2:14 PM
    • #2
    • 10th Sep 09, 2:14 PM
    irs called a debit relief order
    • tigerfeet2006
    • By tigerfeet2006 10th Sep 09, 2:14 PM
    • 13,804 Posts
    • 29,888 Thanks
    tigerfeet2006
    • #3
    • 10th Sep 09, 2:14 PM
    • #3
    • 10th Sep 09, 2:14 PM
    We have had several posters who are in DRO's (Debt Relief Order's). See the sticky at the top of the board.

    Give one of the Debt Charities a ring (links and no's in my sig.) and go through your options with them. With out knowing your full circumstances we can't advise whether it is the right thing or not. If you are advised to take the DRO or BR route then we can help and support you through the process.
    BSCno.87
    The only stupid question is an unasked one
    I now live in a country that is 4 hours ahead of the UK so you may now find I post at weird times
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  • tmcd01
    • #4
    • 10th Sep 09, 2:14 PM
    • #4
    • 10th Sep 09, 2:14 PM
    This is for debts that total below 15k. Its a debt relief order. Theres loadsa info on this site, have a good look. There are a few people who have done it, like everything else, you need to look at your individual circumstances to see if it is best for you.
    You tried your best and you failed miserably. The lesson is 'never try'
  • philnicandamy
    • #5
    • 10th Sep 09, 3:33 PM
    • #5
    • 10th Sep 09, 3:33 PM
    FYI

    http://forums.moneysavingexpert.com/showthread.html?t=1385275

    although its seen as "mini bankruptcy" it still has very similar implications to your credit history etc...do as TF suggested & speak to one of the free agencies SOON
    • MommaDee
    • By MommaDee 7th Aug 18, 1:27 AM
    • 1 Posts
    • 0 Thanks
    MommaDee
    • #6
    • 7th Aug 18, 1:27 AM
    • #6
    • 7th Aug 18, 1:27 AM
    Hey. I!!!8217;ve been advised that if I go with mini bankruptcy with CAB that I will be a bale to get credit and it won!!!8217;t effect my credit rating like a normal bankruptcy does. That I will be able to apply for a mortgage later on in life and I get to keep my bank account but just wipe debt?
    • Craig1981
    • By Craig1981 7th Aug 18, 5:23 AM
    • 170 Posts
    • 85 Thanks
    Craig1981
    • #7
    • 7th Aug 18, 5:23 AM
    • #7
    • 7th Aug 18, 5:23 AM
    Hey. I!!!8217;ve been advised that if I go with mini bankruptcy with CAB that I will be a bale to get credit and it won!!!8217;t effect my credit rating like a normal bankruptcy does. That I will be able to apply for a mortgage later on in life and I get to keep my bank account but just wipe debt?
    Originally posted by MommaDee
    the original thread is 9 years old - i'd suggest moving or opening a new one.
    but in short, no. your file will still be affected for 6 years after 1st default on your accounts
  • National Debtline
    • #8
    • 7th Aug 18, 11:03 AM
    • #8
    • 7th Aug 18, 11:03 AM
    Hi MommaDee and welcome to the forum


    As Craig1981 says, you're best to open a new thread as this one is very old. There is an IVA & DRO board that you can post on. However the information you have been given is not correct.


    A debt relief order (DRO) will be recorded on your credit file for 6 years in just the same way as bankruptcy. It's also possible that your bank account might be frozen, depending on your bank's policy.


    If you are asked on a mortgage application if you have ever entered in to a form of insolvency or a DRO you will have to declare it, in the same way if you were asked if you'd ever been bankrupt.


    Best wishes


    Susie
    @natdebtline
    We 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 Steps
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