Pro's and Cons

[cardiac arrest]

First of all let me say I haven't really thought too deeply about this, but...what are the pro's and cons of going down the UE and possibly SB route as apposed to taking out a DRO ?

On the face of it, one takes 6 years and a fair bit of hassle, while the other (DRO) takes a few quid and 12 months with a 'guaranteed' write off at the end of it.

I am obviously missing a few things here although I realise not everyone will satisfy the DRO criteria regarding assets etc, but if your assets fit it to the qualifying criteria for a DRO is this a better route to take ?

[Undercover Elsa]

Re: Pro's and Cons

There's no one answer to fit all, there are so many things to take into consideration, in my view.
Eg, how far down the SB route you are already
On what basis the account is UE...how watertight? Other factors-default notices-which DCA and how aggressive
State of mind or health and ability to deal with hassle etc etc

In some cases whereby the "debtor" fits the criteria and depending upon the above and other aspects, then yes a DRO may be a quicker, easier route..

[cardiac arrest]

Re: Pro's and Cons

There's no one answer to fit all, there are so many things to take into consideration, in my view.
Eg, how far down the SB route you are already
On what basis the account is UE...how watertight? Other factors-default notices-which DCA and how aggressive
State of mind or health and ability to deal with hassle etc etc

In some cases whereby the "debtor" fits the criteria and depending upon the above and other aspects, then yes a DRO may be a quicker, easier route..

Thanks Elsa..and for the link which is very informative.

The immediate downside I see is the marker on your credit file, which lasts 6 years and obviously could impact on any financial transactions one might wish to enter into (rental agreement for a property maybe). If you have a clean CRA file this is a big step backwards for those of us who have already gone 6 years with a marker on file...but are now clear of that. Against this is the possibility at a future date of a CCJ I suppose...

[garlok]

Re: Pro's and Cons

Interesting comments. However under the Limitations Act once the 6 years are done it becomes Statute Barred. End of. Theoretically Parliament has spoken and the courts at any level have no jurisdiction to grant an order against you. Statute means just that Parliament's will and the Supreme Court even, have no authority or jurisdiction to overturn Statute Law. I believe the complications come as more and more creditors try to prove acknowledgment/payment during the 6 year period. Elsa may remember a time over on CAG when the statutory payment for a s78 request was even being used as a "payment" and "acknowledgment in writing" of the alleged debt. There is also the small matter of interpretation, for that read unlawful manipulation of the Statute Law by both lawyers and judges to rule in the Establishment's favour. Ah well that's just me.

regards
G

[cardiac arrest]

Re: Pro's and Cons

Interesting comments. However under the Limitations Act once the 6 years are done it becomes Statute Barred. End of. Theoretically Parliament has spoken and the courts at any level have no jurisdiction to grant an order against you. Statute means just that Parliament's will and the Supreme Court even, have no authority or jurisdiction to overturn Statute Law. I believe the complications come as more and more creditors try to prove acknowledgment/payment during the 6 year period. Elsa may remember a time over on CAG when the statutory payment for a s78 request was even being used as a "payment" and "acknowledgment in writing" of the alleged debt. There is also the small matter of interpretation, for that read unlawful manipulation of the Statute Law by both lawyers and judges to rule in the Establishment's favour. Ah well that's just me.

regards
G

But as we all know, or as some are finding out under the Tories, one thing promised yesterday doesn't mean it will still be a promise tomorrow...so statute can be changed and SB could be made 10 years...or more... (The NHS is safe under the Tories). The unknown factor, and maybe the only thing that is causing me to defer further thought, is the impact of having a marker on my CRA file with regards to a DRO...is that worse than a Default...does anyone have any experience of life with a DRO on their CRA file ?

[garlok]

Re: Pro's and Cons

But as we all know, or as some are finding out under the Tories, one thing promised yesterday doesn't mean it will still be a promise tomorrow...so statute can be changed and SB could be made 10 years...or more... (The NHS is safe under the Tories). The unknown factor, and maybe the only thing that is causing me to defer further thought, is the impact of having a marker on my CRA file with regards to a DRO...is that worse than a Default...does anyone have any experience of life with a DRO on their CRA file ?

I have no experience at all with DROs DMPs or any of the other "schemes" designed to enslave ordinary folk. I only know how to fight them and I will go down kicking up hell regardless. However I would not worry about the SB limits. Its already down to 5 years in Scotland and in EU countries on the European mainland most are down to 3 years. I have heard rumours that using the same legislation that was used to keep Quatada here, we may get a ruling in the consumers' favour from the same court. I hate the EU but Britain would then have little option but to comply or leave the EU, its that serious. By the way it is a fundamental principle in English Common Law and pretty much any law system that Jurus prudence applies that you cannot as a free citizen be made victim of retroactive, retrospective law.

regards
G

[cardiac arrest]

Re: Pro's and Cons

I have no experience at all with DROs DMPs or any of the other "schemes" designed to enslave ordinary folk. I only know how to fight them and I will go down kicking up hell regardless. However I would not worry about the SB limits. Its already down to 5 years in Scotland and in EU countries on the European mainland most are down to 3 years. I have heard rumours that using the same legislation that was used to keep Quatada here, we may get a ruling in the consumers' favour from the same court. I hate the EU but Britain would then have little option but to comply or leave the EU, its that serious. By the way it is a fundamental principle in English Common Law and pretty much any law system that Jurus prudence applies that you cannot as a free citizen be made victim of retroactive, retrospective law.

regards
G

Thanks G, is this something in the pipeline that you know of, as it would be interesting and relevant to know ? I was being a bit facetious regarding retrospective statute changes, but thanks anyway for clearing up the point for me. There can't be many who fit the qualifying requirements for a DRO when you look into it...it's as if they don't want anyone to be able to use it. Maybe I should check if the OC's want to settle before I venture any further...they sold my £7k debt for £300 or something, so that's a negotiating starter maybe.. Time to have a think now perhaps....

[Enforcer]

Re: Pro's and Cons

Talked with my daughter about this. She would qualify for DRO, but we have now gone past the 2 year mark towards SB by not answering any letters and changing her phone number. Clarity are now writing to her new address asking for info. As usual the DCA's are chasing the smallest account first. In the bin, no reply. If anyone goes for CCJ this option is open to her. Will wait!

[garlok]

Re: Pro's and Cons

Hi Cardiac. Unfortunately I don't have anything specific on the ECHR and ECJ material. I picked up the first inklings of perhaps something happening from all the chatter about rationalisation and equalisation of financial matters within the EU. I do follow it all a bit as despite being left of centre politically I am fervently anti EU having worked for the technical commission for a while during my career. This inequality and inequity over the Satute Barring of debts is yet another example of the Establishment cherry picking the bits that suit them in "EU Law" and ignoring the bits that do not suit them. In actual fact if you take a look at that heinous document called the Lisbon Treaty it tells that there is no such thing as "EU Law" AT ALL. Appendices 27 and 28 to the Protocols Articles specifically mention the UK and Poland as being exceptions to ANY agreements and clauses that they had signed up to. So all this claptrap about human rights EU Law, ECJ and ECHR we have just been sold is rubbish anyway.

Cambridge University Faculty of Law have actually published papers on the subject and the one I read was about Article 31. So interesting times I think and by the time corrupt cretins get around to doing anything I will long be burned in hell if not sooner sent to Auschwitz by Barclays Bank (who surprise surprise have a huge hole their finances)

regards
G

[SXGuy]

Re: Pro's and Cons

You make a good point Garlok, and they spurt the same rubbish about leaving the EU and having no trade agreements, when one of the main points regarding leaving the EU is you must first set up trade agreements in its place. As you say, they cherry pick the bits that suit them and ignore the rest.

[cardiac arrest]

Re: Pro's and Cons

Have been on the Step Change website (formerly CCCS) and filled in all my info...and their 'advice' is a DRO...They apparently manage the process for you and it's free apart from the court fee of £90. My main concern is the impact of having a Bankruptcy on my credit file for 6 years...how will that affect me. Do organisations run a mile when they see this on your file, even though in reality it is sorting out your debts to give you a clear run, so to speak. I expect they think you are reckless and unreliable, making that judgement without actually enquiring about the circumstances..

Obviously once bitten by debt most people would make damn sure they never end up in that position again, and any credit they may request in the future would be of minimal and manageable proportions.

Looking at the Pro's and Con's....

Pro's
-----

End of worry
Debt cleared
No more letters or aggro
No risk of a possible CCJ
Quicker resolution than SB

Con's
------
Black mark on CRA file for 6 years
Risk for future transactions where a credit check is required
Changing Bank Account or negotiating with Bank
Costs £90
Could wait for SB to kick in in 5 years (although that's not guaranteed.)

There is also another factor...in 20 months I'll start to get my OAP..which will give me a bit of extra income. That could be taken to pay off my debts making me no better off..but if I'm going to apply for a DRO it has to be at least 12 months before any increase in income, which has to be declared and could affect my eligibility. So I need to decide sooner rather than later what I intend to do. I dare say some would suggest if I'm getting an increase in income then I 'should' be prepared to pay off some of my debts...

In the end, it's trying to guess the unknown isn't it...will the banks come for me at some point in the future, will they win against my UE by getting a sympathetic judge and I'll get a CCJ (which bars the DRO route). If that happens they'll look at my new income and help themselves to a nice chunk of it..and that'll be me stuffed for the rest of my days...whereas a DRO now would take all those unknowns away, and just leave another unknown of how would I be treated with a Bankruptcy on my CRA file..

I don't know...worry worry...

[PlanB]

Re: Pro's and Cons

Have been on the Step Change website (formerly CCCS) and filled in all my info...and their 'advice' is a DRO...They apparently manage the process for you and it's free apart from the court fee of £90. My main concern is the impact of having a Bankruptcy on my credit file for 6 years...how will that affect me. Do organisations run a mile when they see this on your file,

. . . There is also another factor...in 20 months I'll start to get my OAP..which will give me a bit of extra income. That could be taken to pay off my debts making me no better off..but if I'm going to apply for a DRO it has to be at least 12 months before any increase in income, which has to be declared and could affect my eligibility. So I need to decide sooner rather than later what I intend to do.

..whereas a DRO now would take all those unknowns away, and just leave another unknown of how would I be treated with a Bankruptcy on my CRA file

A DRO is not Bankruptcy and the Stepchange website makes this clear.

If you've got a state pension on the horizon then I would think you've reached make-your-mind-up-time. You've probably worked hard all your life and paid your NI contributions so you deserve that pension more than your creditors

I'm of the same vintage as you (possibly a bit older) and it's abundantly clear that ageism is at work in the credit business. People of our age don't get loans, mortgages or credit cards easily, however rich we may be, because the banks fear we'll die before they get paid off. There's anecdotal evidence of Barclaycard reducing the credit limits on pensioners' accounts for this very reason. So you're probably worrying about being rejected for credit due to something negative on your CRA file when borrowing money in future may not be an option anyway.

[cardiac arrest]

Re: Pro's and Cons

A DRO is not Bankruptcy and the Stepchange website makes this clear.

If you've got a state pension on the horizon then I would think you've reached make-your-mind-up-time. You've probably worked hard all your life and paid your NI contributions so you deserve that pension more than your creditors

I'm of the same vintage as you (possibly a bit older) and it's abundantly clear that ageism is at work in the credit business. People of our age don't get loans, mortgages or credit cards easily, however rich we may be, because the banks fear we'll die before they get paid off. There's anecdotal evidence of Barclaycard reducing the credit limits on pensioners' accounts for this very reason. So you're probably worrying about being rejected for credit due to something negative on your CRA file when borrowing money in future may not be an option anyway.

Thanks Planb. I hadn't considered the ageism bit...As for future loans I guess at some point I might need a replacement car as mine is already 14 years old and will be lucky to last another 20 months, saving up first will not be an option, so that's one issue I have. Also, as a tenant I will likely move house at some point , like something easier to potter around in than my 1874 built house...that will require credit checks so that's another consideration. At some point soon I will have to make my mind up I know, as the clock is ticking against me.

It's impossible to say what will happen in the future with my existing creditors, but for sure if they find out more money is available, they'll want a slice..that is fairly certain , the success of a UE is a unknown as is how I will be treated with a DRO on my file. I got the bit about it being like a bankruptcy from another site I looked at (I've looked at a few so can't remember which one).

Yes I've worked for nearly 40 years, some of which I paid unneccessary state pension contributions since they reduced it to 30 years qualifying for a full state pension. I will also have another small pension from a previous employer to come at the same time as my OAP...so all together I will have a decent enough retirement income through my contributions over the years. I'd be gutted if the banks got their grubby hands on it, there would be no going back and no other options if that happened...so, is it a risk worth taking to do a DRO now...I'll never know if it was the right decision or not,but at least I eliminate the risks..........

[Never-In-Doubt]

Re: Pro's and Cons

As for future loans I guess at some point I might need a replacement car as mine is already 14 years old and will be lucky to last another 20 months, saving up first will not be an option, so that's one issue I have.

Instead of a DRO (which would affect any car anyway) save the pension monies for the new car - problem solved

[Never-In-Doubt]

Re: Pro's and Cons

Have been on the Step Change website (formerly CCCS) and filled in all my info...and their 'advice' is a DRO...They apparently manage the process for you and it's free apart from the court fee of £90.

Hmmm, wonder who funds this place? Barclays is a biggie (amongst others).

My main concern is the impact of having a Bankruptcy on my credit file for 6 years

You wouldn't - DRO is not a BR

Pro's
-----

End of worry - agreed
Debt cleared - agreed
No more letters or aggro - agreed
No risk of a possible CCJ - agreed
Quicker resolution than SB - agreed

Con's
------
Black mark on CRA file for 6 years - agreed
Risk for future transactions where a credit check is required - agreed
Changing Bank Account or negotiating with Bank - agreed
Costs £90
Could wait for SB to kick in in 5 years (although that's not guaranteed.) - agreed

I agree a DRO might well be best for you, long term, based on the above but just make sure, if you do do it not to miss any creditors