Document text
Letter to Creditors: Please Hold Action While I Apply for a Debt Relief Order
[YOUR FULL NAME]
[YOUR ADDRESS]
[EMAIL] · [PHONE]
[CREDITOR'S NAME]
[CREDITOR'S ADDRESS OR EMAIL FOR CUSTOMER FINANCIAL SUPPORT / COLLECTIONS]
[DATE]
Account or agreement number: [ACCOUNT NUMBER]
Dear Sir or Madam,
Request to hold recovery action — Debt Relief Order application in progress
I am in financial difficulty and cannot keep up with my payments to you. I am getting free debt advice from [NAME OF DEBT ADVICE ORGANISATION], an approved intermediary for Debt Relief Orders, and I expect my DRO application to be submitted to the Insolvency Service on or around [EXPECTED DATE]. My adviser's reference is [ADVISER REFERENCE, IF ANY].
1. What I ask you to do
Please, for at least [30 DAYS / UNTIL (DATE)]:
hold all recovery action on this account, including court action, passing the debt to a collection agency and default charges where you can;
[freeze interest and charges / confirm whether interest and charges will continue];
send me a current statement showing the balance, any arrears and the date of the last payment, so that the debt can be listed correctly.
The Pre-Action Protocol for Debt Claims says that where a debtor is seeking debt advice, the creditor must allow a reasonable period for that advice to be obtained (paragraph 4.2). If my DRO is approved, the Insolvency Service will write to you, and from then on you will not be able to take action for this debt without the court's permission (Insolvency Act 1986, section 251G).
2. [ONLY FOR A HIRE PURCHASE OR CONDITIONAL SALE LENDER] My vehicle agreement
My agreement number [AGREEMENT NUMBER] is for [MAKE, MODEL, REGISTRATION]. I need the vehicle for [WORK / CARE DUTIES / HEALTH REASONS / NO PUBLIC TRANSPORT] and I intend to [KEEP IT AND CONTINUE THE MONTHLY PAYMENTS OF £ AMOUNT / RETURN IT]. Please tell me in writing:
whether the agreement is up to date or in arrears, and the amount of any arrears;
the settlement figure;
whether the agreement contains any term allowing you to end it or take the vehicle back because I enter an insolvency procedure such as a Debt Relief Order.
3. Contact
Please write to me at the address above or by email. I am not able to make payment arrangements by phone while my application is being prepared. My adviser may contact you on my behalf; I consent to you discussing this account with [NAME OF DEBT ADVICE ORGANISATION].
Yours faithfully,
____________________
[YOUR FULL NAME]
For me
[ ] Total debts under £50,000; savings and valuables under £2,000; vehicle worth under £4,000 (or adapted)
[ ] Lived or worked in England or Wales in the last 3 years; no DRO in the last 6 years
[ ] Letter sent to each creditor on [DATE]
[ ] Ask the adviser about a Breathing Space (up to 60 days) if creditors do not hold action
[ ] DRO approved on [DATE]; ends 12 months later: [DATE]