Debt Relief Order - Help

[July2015]

I have finally gathered the courage to face my debts. I've not been paying anything towards them for over a year (yes, I know, I'm an irresponsible idiot. I could give you the excuses why, ill health, depression, bereavement, but I know it's still awful).

I went onto a credit check website (because I don't even know who I owe and how much) and found out I have a CCJ, and I owe £5,300 in total.

I went onto the Step Change website and entered all my details, and it has recommended a debt relief order. From what I understand, I pay £90 for this and then don't pay anything for £12 and then the debt is cleared, but stays on my credit record for 6 years.

My only concern with doing this, is that I know I will need to move out of this rented house in a year or two to another rented house. Would a landlord refuse me on this basis? Or would they refuse me anyway due to the CCJ?

Thanks

Hello, and sorry to hear about your troubles- well done for facing up to them.
When renting, if you go through an agent they will do a credit check which will show up the CCJ, (I am not sure about the DRO). You would almost certainly be refused a tenancy based on this I'm afraid.
You could try going through the small ads, Gumtree etc., to find a private landlord who may not do a credit check. Be sure though that he or she is legit, and that they protect your deposit.
Good luck!

So maybe it is worth me going with the DRO then if my credit rating is already messed up?

Could dh (we don't have joint finances) rent a property in just his name? His annual income would obviously be lower than the two of ours combined, but with a guarantor, could this be an option maybe? (Never defaulted on rent, but understand a LL/Letting agent wouldn't necessarily believe that)

Well done on facing up to your debts. I had to go bankrupt a few years ago so I know what a big step it is.

I didn't have to deal with the rent situation you have (I am in council rented) but I know that some people move house before doing a DRO/BR so that the credit check happens before. But if you have a CCJ then that sounds like it may be just as bad on your credit record.

If your DH has a clean credit rating then it might be possible to get the rental in his name only.

I would suggest calling Stepchange, not just using their website, as they can help you with the day-to-day implications. A DRO needn't be disastrous to your credit rating forever and in most cases you can continue most of your financial affairs as before, but you need to get good advice on how to arrange things so they will work in your favour (e.g. opening the right bank account before hand).