Applying for DRO

[petertinc57]

Been advised by Stepchange to apply for a DRO over 2 credit card debts and an old utility company gas bill all of which I am unable to pay and in the case of the credit card debts have been trying to for last few years. My advisor at Stepchange advised me not to let my creditors know i'm applying for the DRO. I'm in the process of paying, by instalments, the £90 fee and this should be paid in full within the next 6 weeks. Been receiving threatening letters from EDF Energy over the gas bill to be included on DRO which is just under £61. Threats of referral to debt collection agency and court action with the prospect of added costs. Would really appreciate some advice as I can't stop worrying.

[Wintry]

Been advised by Stepchange to apply for a DRO over 2 credit card debts and an old utility company gas bill all of which I am unable to pay and in the case of the credit card debts have been trying to for last few years. My advisor at Stepchange advised me not to let my creditors know i'm applying for the DRO. I'm in the process of paying, by instalments, the £90 fee and this should be paid in full within the next 6 weeks. Been receiving threatening letters from EDF Energy over the gas bill to be included on DRO which is just under £61. Threats of referral to debt collection agency and court action with the prospect of added costs. Would really appreciate some advice as I can't stop worrying.

 

Hi

 

If it is an old gas bill from a previous company then there is basically no threat to your supply and classed as a non-priority debt same as the credit cards.

 

The three creditors you have mentioned could pass accounts onto external collection agencies who have no real powers.

 

The credit card companies probably will add interest and charges for a while and / or along with the utility company may look at a CCJ which would still be covered by the DRO.

 

Time is on your side as far as a CCJ is concerned and even if they got one (say there was a delay with your DRO application for some reason) if you return the admission form within the time limits with say a token offer there is not really much anybody can do.

 

There cannot be any possibility of a Charging Order as you wont have a property or you would not be eligible for a DRO

 

The only issue really I can see here if you are going the DRO route in 6 weeks time is if your total debts are close to the £15000 limit and any added costs, charges & interest would take you above that.

 

Whether you should let your creditors know is an interesting one, a temporary arrangement or holding letters along the DMP procedure maybe, which might keep them quiet - no contact with them at all and they will almost certainly press the telephone numbers and start to send out the computer programmed standard request and threatening letters.

 

I would have thought that Stepchange would have explained similar to the above

 

Are Stepchange Doing the DRO for you?

 

My view of the situation

 

Best Wishes

Edited May 25, 2013 by Wintry