Thread: DRO - Debt Relief Order

Hi

I am looking in to applying for a debt relief order and CAB have said I wouldnt be eligible if I had more than £50 pcm expendible income or over £300 of assets.

My question is, what so they class as an asset and what value would it have.

I have a PC (obviously), but it's not worth much, same with the TV, it's a CRT about 24 inches, cost about £100 3 years ago. I've got a large fishtank, bu nothing s****y, would they consider that an asset? What about old mountain bikes or a car that cost me £100 and now has no tax or mot?

I think that I pretty much fall in to the criteria for the DRO otherwise (but will try the CCA and SARS/charges refund route first I think)

Thanks

Originally Posted by Jake the snake

Hi

I am looking in to applying for a debt relief order and CAB have said I wouldnt be eligible if I had more than £50 pcm expendible income or over £300 of assets.

My question is, what so they class as an asset and what value would it have.

I have a PC (obviously), but it's not worth much, same with the TV, it's a CRT about 24 inches, cost about £100 3 years ago. I've got a large fishtank, bu nothing s****y, would they consider that an asset? What about old mountain bikes or a car that cost me £100 and now has no tax or mot?

I think that I pretty much fall in to the criteria for the DRO otherwise (but will try the CCA and SARS/charges refund route first I think)

Thanks

Hi there.

None of those items are going to be considered an asset, you'll be fine.

One thing to consider with a DRO is that if your circumstances change whilst you are under the DRO which means you have more than £50 per month the DRO could be revoked which means the creditors could start chasing again. Any frozen interest could also be backdated.

Have a read:

National Debtline England & Wales | Debt Advice | Factsheet 37 Debt Relief Orders

How do they know if you have more than £50 a month? Do they have access to your bank account? What about assets? What exactly do they mean by assets? I too have some electrical items. Old TV and amp, PC but it is actually of a decent spec so not so sure how it would fall within their eyes. How do they even know? Does someone come around and visit and take note of your belongings?

Also are you allowed to still keep and use a credit card for small items or do you get stuck on the bad credit and lose your CC?

Originally Posted by Dick Emery

How do they know if you have more than £50 a month? Do they have access to your bank account? What about assets? What exactly do they mean by assets? I too have some electrical items. Old TV and amp, PC but it is actually of a decent spec so not so sure how it would fall within their eyes. How do they even know? Does someone come around and visit and take note of your belongings?

Also are you allowed to still keep and use a credit card for small items or do you get stuck on the bad credit and lose your CC?

You will work with an Official Receiver who can ask your bank statements at anytime.

Electrical items are very liekly to be exempt.

You cannot have a credit card, your credit file will get seriously impacted. It is, after all, a formal form of insolvency.

I may try and hang it out for a year and see just what others have had to deal with. I am paranoid about things like privacy and I just don't trust our government with the amount of leaks they have on our data. I also don't like the idea of losing use of my CC. I use Egg for small online transactions (You know like an item you have trouble finding cheaper or finding at all in brick and mortar shops) and it would be a real pain trying to find alternate payment methods.

I am not quite ready to go this route but it's good to know that if everything turns pear shaped this is there to fall back on.

Originally Posted by Dick Emery

I may try and hang it out for a year and see just what others have had to deal with. I am paranoid about things like privacy and I just don't trust our government with the amount of leaks they have on our data. I also don't like the idea of losing use of my CC. I use Egg for small online transactions (You know like an item you have trouble finding cheaper or finding at all in brick and mortar shops) and it would be a real pain trying to find alternate payment methods.

I am not quite ready to go this route but it's good to know that if everything turns pear shaped this is there to fall back on.

You can easily get a pre-payment card for online shopping.

The whole idea of a DRO is a route for those who are insolvent, you cannot have your cake and eat it - so to speak!

If you can consider an alternative it may be worth doing as a DRO is likely to really scupper your credit file for 6 years with potential implications beyond too.