civil law

[davidmarsden]

my daughter has had a debt relief order which ends on 25th july. what happens when the order is completed ie does she have to inform all her creditors and how does she know if all her debts have been cleared.

[EDDIE51]

Once it is completed she is free of all the debts that it covered , she does not have to inform anyone , her creditors will have been informed of the debt relief order when it started and have now been payed their share, they can take no further action against her or even contact her again. ( that is why it is called a 'debt relief' order, the clue is in the name )

[tonywiltshire]

As Eddie says there is no need to inform any creditor when the DRO ends after 12 months. A DRO is a fairly new innovation with strict qualifying conditions and types of debt, it is designed for those with suitable debts under £15K and few resources available. The important thing to remember is that you will only be free of the debts listed on the DRO; any overlooked will probably be actionable.

[davidmarsden]

thanks for the information,my daughter will sleep a bit easier tonight

[mike11111]

Please excuse the trespass of a geriatric onto this thread, but Wasn't Civil Law the guy who used to sell carpets that everyone could afford?

[themas]

I have quite a bit of experience of this. It is true there is no need to contact anyone, & that all the debts included in the application are written off.

However, some creditors are very inefficient. I've known cases where the written off debt has been chased quite a long time after the 12 months has elapsed - either by the original creditor or by a debt collector acting for them. (If a creditor fails to write off the debt it can stay on the books for ages, so any chasing can occur months or even years later.)

My advice is to go online to the Insolvency Register immediately after 25 July, find her entry, print it off & keep it permanently (the entries are taken off the register after 3 months). Also, keep permanently a copy of the original application listing all the debts included. (If she doesn't have this the DRO intermediary who dealt with her case should be able to provide a copy.)

If she is then chased at any time in the future she can produce these documents to prove that the debt was written off in the DRO.

[EDDIE51]

themas, thanks for your very helpfull answer that has addressed a lot of questions I had about DROs

[boxtops]

Ditto, that's really helpful, themas.