Advice on DRO

Basic Criteria for a debt relief order :

•Must not be a homeowner,
• Debts less than £20,000,
• Can have a car worth up to £1000,
• No other assets of more than £1000 (*see below),
• Must have £50 or less left at month end, after all essential payments have been made (not inc debt repayments),

OK, your debts are now frozen.

If you move outside those criteria during the 12 months, you should report this to the DRO team. I would suggest, if unsure, you first contact the intermediary who submitted your application.

Your surplus income has been assessed as -27 so you would need an income increase of 78 per month to cause a problem? Is that likely?

With assets received during the moratorium, the rules are a little more flexible:

•If property worth more than £1,000 is received during the moratorium the order might not be revoked if it is reported as soon as possible and is worth less than 50% of the total debts scheduled.
•Where the amount received is between £1,000 and £1,990 (up from £1,850) the DRO Team will consider a number of factors including the client’s health, age, liabilities etc. and may agree not to revoke the DRO.
•Where the amount received is more than £1,990 (up from £1,850) the DRO is much more likely to be revoked but this is still a discretionary decision and will depend on the facts of the case

Hope that helps

jaxsmar wrote: »

Hi I'm looking at dro advise can I ask a question ..after the first year what happens regarding the £50.00 a month limit. I'm trying to get all the facts as poppyjade said not all the advice is available. Years 2/3/4/5/6 is it still only £50? Its just a long time and hopefully things would improve but I'm no psychic!

After 12 months the DRO is over and done with.

You can win the lottery and work as chairman of ICI - your debts don't come back.