Debt Relief Order...does anyone have experience/advice?

[LostInSockLand]

My redundancy insurance has now run out. I was hoping obviously to be back in work by this point but it's all looking a bit hopeless at present. I've tried my best but realistically can't pay my loan and credit card the amount they demand anymore.

I called CCCS (extremely difficult to get an appointment with CAB), hoping for some help reducing payments/freezing interest etc. They have suggested a DRO. I feel ashamed its come to this and would have preferred to have tried to pay my debts off myself if i'm honest.

The reason I am IN debt is because of working as far fetched as that sounds. Four redundancies since 2004, having to claim benefit, tax credit cock ups leaving me having to pay for three months worth of childcare on my card, having to pay for one day a week childcare for nine months to keep the place open until I could find another job, mistakes with my rent resulting in threat of eviction...on and on it went. I had so many problems getting my insurance to pay up too I was left with nothing to pay my bills and no benefit at all for six months...I had to use credit again to live. I dont buy anything flash, or anything we dont need..but I still feel guilty.

Anyway, i've been told this is the solution. What can I expect? (Obviously I wont get credit again which is no problem as I never wanted to use it anyway and due to the insurance cock up i'm pretty sure my credit rating is already pants). Will my bank account be closed etc?

Anything would be helpful.

Im sorry to hear about your situation. I went bankrupt in 2006 due to my own stupid fault I was really reckless with money and racked up silly amounts of debt spending on rubbish was probably due to lack of self asteem etc. However I did always pay my cards loans etc it just got to the point that was all my wages went on so I took some advice saved the fee and went for it also I had no assets just a car so it was pretty straight forward. Ive almost done my time for my crime and have started to see a difference in my rating etc also my attitude to money as not being able to obtain credit has changed my way of thinking. I do not buy anything now that I cant afford I do have a credit card but I only use this for car emergencies as I need it for work and live in a rural area.

My understanding of a DRO you need to have no more than £15000 worth of debt and its £90 to do it and it will obviously affect your credit score. I think there is more criteria but not sure. It is a serious matter and shouldn't been taken lightly but if you have reached that stage then that is the reason it has been put there. Like you I would of rather of paid my debts and I was months away from finishing a £10,000 loan which i'd been paying off for 3 years. I was 26k in debt and earning about a grand a month and running a car for work which I didn't get paid fuel costs. I didn't have kids at the time either but it was a very upsetting time and my parents were extreamly dissapointed. But, its really not as bad as its seems and it really lifts a huge weight off your shoulders when its done and really makes you look at money differently and I really learnt to live within my means to the point im a bit of a skinflint now.

Bankruptcy is serious and my accounts did get frozen (which will be the same for a DRO) but you can go and open a new account the next day albiet a basic cash point card. I was lucky because I'd been paying my debts I still had quite a good credit rating the next day so managed to get a small overdraft, cheque book and debit card, the bank even offered me a credit card which I declined. I also got to keep my contract phone and my car as I needed it for work but they were just my circumstances yours maybe different?? The experience was not as bad as it seemed although was stressful and distressing at times as I wasn't sure if my car was going to be taken but turns out wasn't worth that much so not in their intrest.

good luck.

I have a DRO at the moment. The terms are that you can't have £50 or more surplas income a month for 12 months. The CCCs are really helpful and do almost everything for you.

Hi I had one a couple of years ago when they 1st came out. Just sorting ds's out, will try to get back to you tonight but may not be until tomorrow

Hi, back as promised. I was discharged from mine Sept last year. Mine was basically because I couldn't get my name taken off of joint accounts as my ex refused to sign the forms. So the accounts went from zero balance to several thousand o/d because my ex ran them up and beyond then sat back and let the interest take over. There were also a couple of joint credit cards that I was doing my damndest to get paid off but to no avail as I had to change job when split from xp and was soon made redundant from that (£50K joint income to £6K in no time at all!). Ex refused to help with the credit cards and even though the banks knew about his refusal to take my name off bank accounts and could see it was him withdrawing the money there was still nothing I could do as my name was on them. It got to the point where I had no choice but to get a DRO. CCCS were no help at all as I had just sold my house but National Debtline were great.

Criteria is:
-debts under £15K
-surplus less than £50 p/m
-cannot have a deficit (I had to play about with the figures as I had more going out than coming in)
-no assets over £300 except car (not over £1000)
-will have to close bank account and get a basic one

Don't expect it to be lighter than full bankruptcy though, it isn't! It still shows up on credit file as B/R. It's still there for 6 years, you still have to chase companies to clear the debt after you are discharged and I still have to have a childs bank account as no bank will give me a proper one while the DRO still shows on my credit file.

But it was such a relief when it went through, and even though it's shit now and it gets to me because 3.5 years on my ex is still affecting me financially in 4.5 years I will be free financially from him which is one step.