DRO

A question about : DRO

Hello

I'm drowning in debt at the moment and looking in to doing a Debt Relief Order, as recommended by Step Change on their Debt Remedy tool.

The problem I've got is that my car is coming up on whatcar (using their free car valuation tool) at worth Ј1320 at trade price.

From what I understand my car has to be worth less than Ј1000 so does anyone know what I would need to remedy this before applying for a DRO. I know this seems like I obviously need to get a cheaper car but I'm not even sure how to approach that. Can I start the DRO proceedings before I get rid of my expensive car? Do I approach a dealer and ask them to buy my car from me so that I can buy a cheaper car? Do I see if I can find a car dealer that will offer me a straight swap for a cheaper car? - I presume that will be classed as dropping assets for less than their value??

I'm new to all this debt relief stuff and struggling to know where to start really

TIA

Best answers:

• Hiya
  I took out a DRO last April (nearly finished). I went on Parkers website in order to get my valuation. It gave me the option of different levels of condition of car. As my car was/is in a poor condition my valuation came out under the 1000 threshold with them and I was able to print the information out and send it through to Step Change with other paperwork and the valuation was accepted without me having to prove condition. I think it cost about Ј3 with a debit card to do.
  Hope this helps! Keep us posted how you get on. I know what a difficult time this is for you xx
• Don't pay anything. Go to Parkers and see what the free valuation says. Less than Ј1k and you're cool. If you have to pay for a valuation because the car is older than 10 years old, then your advisor will ask you what yu value the car to be worth. Check on autotrader at similar cars for sale. Some for Ј1k or less, you're fine to think yours is worth less as it might well be.
  If packers gives a free valuation for more than Ј1k, get an independent trader or 2 to give you a written valuation confirming value. Do not use we buy any car as they are not acceptable for valuations. You will have to send the valuations to your advisor who will keep them in case the DRO unit ask for them
• If it's under 10 years old you must use Parkers.
  I just did a comparison on a 7 year old Renault in our family. The values were:
  Whatcar Ј2084
  Parkers Ј1790
  I wouldn't be surprised if you were much closer to the 1k limit on Parkers and drop through that barrier in the next few months
• A lot depneds on the condition, if it has dents all over it then parkers is not correct.
• I think I'll start carrying a lump hammer in my work bag.
  If the valuation comes in at just over 1k, I'll nip out to the car park and lower the value for them.