Can you apply for a Debt Relief Order if you have prioritized one creditor over another? | LawHive - Solicitors & Lawyers Online
Can you apply for a Debt Relief Order if you have prioritized one creditor over another?
Edit - In Wales I would like to try and apply for a Debt Relief Order. I have done a budget calculator and my monthly budget shortfall is -£60.54. Family are helping to cover the shortfall on an ad-hoc basis at the moment. My house was repossessed in January 2020. The house was sold by the mortgage company soon after (I assume, I have driven past it and that looks to be the case). I have had no further contact from the mortgage company since January 2020 when I vacated the property. I currently live with family. There was also a secured loan on the property that I am currently paying off at £60 a month. The outstanding balance is approx. £7k Yesterday I checked my Equifax credit report and found that the mortgage company have a default on there for the sum of approx. £14k My question relates to the rule that to be granted a DRO you must not have prioritised one creditor over another. My (admittedly naïve) understanding that my mortgage debt had been settled now means that I have been paying one creditor and not the other. I also have approx. £2k of payday loans and mobile phone debt on my credit report and a CCJ for £350 although I am not sure what the CCJ is for. Would you think that me not being aware of the other creditor (the mortgage company) would be an influencing factor when the decision is being made. As it looks like I have been paying off the secured loan but ignoring the mortgage. Thanks for reading.

Latoya Kropff

19th October 2021

1 upvote

Top Answer
Get in touch with stepchange. They can help you through this. I've done it for someone myself too. They respond quickly to emails, and you can get in touch over the phone as well. Get all your documents together, and give them a call. Please.

William Diaz

11th February 2022

1 upvote

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