I have had a letter from National Debt Line, who tell me that if I fail on my IVA I can apply for a Debt Relief Order where I will be debt free in 12 months. Does anyone know anything about this?
28 down 32 to go, seems like a long way but one bit at a time
A Debt Relief Order (DRO) is for debts under £15k, assets under £300 (but £1k for a vehicle) and less than £50 left at the end of the month. It is similar to bankruptcy.
The criteria is quite strict so if you are able to make payments into an IVA, it may not be an option for you. Have you had a change in circumstances?
Debt relief orders are only available to people who owe less than £15,000 and have a surplus of less than £50 per month so it is unlikely you would qualify anyway. Regardless, how does this company know your personal circumstances and it sounds like another bankruptcy assist company to me.
Contact your IP for advice if in doubt but throw that letter away.
The problem is that I do owe less than £15,000, have no assets and live in a rented property, I have an income that isnt going to go up at all as I am retired, and I have had a rent rise from £385 per month to £500, so I can only pay the rent and the IVA if I dont buy food. The rent rise has really floored me and the rent rebate I get is capped which doesnt cover the rise.
It seems like a good idea if it works as they say it does, not sure though, seems too good to be true in the situation I am in.
28 down 32 to go, seems like a long way but one bit at a time
They cannot help you do a DRO anyway as far as I am aware - only certan companies can and CAB is one.
How much are you paying into your IVA and, with your rent rise, how much DI will you have?
Bear in mind as well that your circumstances have to stay the same for the whole 12 months and your credit will be shot for a further six years from the date the order is granted.
I would speak with your Insolvency Practitioner (IP) regarding your difficulties before speaking to a third party company. Your IP knows your history and has all of your details and they should be best able to advise you on all of your options, including DRO.
Don't be afraid to call your IVA company and let them know you need help and are considering a DRO as an option. There may of course be other options depending on your circumstances and how much you have paid to date. For example asking creditors to accept the funds paid to date to complete your arrangement.
Get in touch with your IP and let us know how you get on.
Thank you for all your advice, I will give my IVA company a ring, it doesnt feel right to stop paying it as the other company suggested, and I certainly could do without the stress of phone calls from debtors again.
Where the hell did they get my name and address from? Begs the question of privacy.
28 down 32 to go, seems like a long way but one bit at a time
