Debt Relief Order

[ell9]

Hello

I am considering a Debt Relief Order and wondered if anyone has any advice or experience with this?

I'm in £11,000 debt and due to mental health problems and the breakdown of my marriage, I can not afford to live and pay my debts on £1,200 wage per month (working full time).

Just wondering if anyone can tell me their experience with the same or similar or advise me in any way x

Contact StepChange. They are a fantastic organisation who will go through your income and outgoings, then suggest the best possible route for your debt.

I have spoken to them in the past on behalf of a client and I can not recommend them highly enough.

One thing to take into account is how it affects your credit score.

Especially in regards to your home if you're renting. If I remember rightly, the lady I spoke to said that it can become a problem if your lease has a clause regarding your credit score/DRO/bankruptcy when it comes to renewing.

Are you claiming everything you're entitled to? Check the council website and make sure you're getting the single person council tax discount. If you're renting you may be entitled to a discretionary housing payment to put towards your rent.

StepChange can advise on all of this though.

Another vote for step change. They turned my life around.

@dontlikebeards

Another vote for step change. They turned my life around.

Same here.

They may be a better solution that a debt relief order, such as a debt management plan depending on your income/outgoings, as PP have said I would recommend contacting StepChange so you can assess all the options that are available.

I helped someone get a DRO for the same reasons as you. It was a life saver.

Thank you everyone.

I already have a Debt Management Plan with StepChange, they have been brilliant however I'm going to soon be unable to keep up with the monthly re-payments and everything is a struggle right now x

Hi I did a DRO is 2013...after struggling as a single parent in a lot of debt (£12,000) and I can honestly say it's the best thing I've ever done! You have to show that you have less than £50 a month spare after paying bills and there might be restrictions on car ownership/expensive item ownership? I can't remember...anyway...I was able to take out a credit card 2 years later which I managed responsibly and as a result have been able to get main bank credit since 2018...it's all off my credit file now (some creditors you have to contact to make them update your credit file in my experience) and my score with Experian is over 900...luckily our home is family owned so it didn't affect renting and yes it will really mess with your credit file for at least 4 years but after living for 12 years robbing Peter to pay Paul it's the best thing I ever did! If you've got any other questions I'll try and answer :-) x

Definitely talk to Stepchange. If your DMP is no longer appropriate, they'll be able to process a DRO for you (or advise on other more suitable options)

If you're already working with Step Change, speak to them and tell them that you can't manage the management plan payments.

DROs are a brilliant solution for a lot of people. I've helped many clients get them, and they really are a relief once they're in place! Last time I was involved in one, the fee was just over £100, but with Step Change you can pay it bit by bit.

You do need to bear in mind that if your circumstances change within a year of the order taking force, you have to notify the insolvency people and the whole thing can be revisited, so best not to do it if you're anticipating a windfall in the next 12 months.

Thank you everyone so much.

@Troubledmummy3 your story gives me hope!

I'm so depressed because of this debt, some of it has been taken out since my DMP though and I'm worried I will get into trouble, it was taken out in my name but were for my now ex-h, he's not making the payments anymore so I have to take them over as in my name (what a fool I am).

I've rented the same house for 4 years and have no chance of any money coming to me any time soon.

Hi, have you ever been on the moneysavingexpert forum? It has a Debt Free Wannabe section with lots of threads and diaries, it's really interesting to read through.

Do try MSE there are a lot of people with a ‘wealth’ of information.