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  • FIRST POST
    • MarmaladeMamma
    • By MarmaladeMamma 5th Jan 18, 1:55 AM
    • 4Posts
    • 0Thanks
    MarmaladeMamma
    Help with possible DRO please!!!
    • #1
    • 5th Jan 18, 1:55 AM
    Help with possible DRO please!!! 5th Jan 18 at 1:55 AM
    Hi everyone this is yet another DRO scenario, can't find a post quite like my situation so I thought I may as well ask for help here too. I hope someone can make sense of this as Im not even sure I can..
    I'm a mother of 3, on maternity at the moment with a lot of debt, credit cards, fuel bills, benefits over payments ect. I have really let my life spiral out of control in all areas and I am just so tired and desperately sad about everything.
    My income is getting less and less lately and I just want to be rid of the worry of the debt as soon as I can.
    My situation is a bit complicated but I'm going to give it a go laying it out here.
    My debts all together are around £18,000.
    My current income is:
    560 maternity allowance 4 wkly (350 monthly when back to work)
    192 child benefit 4 wkly
    160 child maintenance monthly.
    (460 child tax from April)
    Budget I did tonight on national debt line(on mat and including child tax) came out as
    Income 1474.66
    Outgoings 1978.66

    I was over payed tax credits so they recently have stopped my payment until April to repay. I don't claim housing benefit or council tax as I was a student till July, but my (happy suprise)baby meant I couldn't return to uni in September but I haven't told the council yet. I was on 100% discount due to student status which I am reluctant to change as I was so broke this summer. When I tell the council I will owe at least £700 I think but this is included in the 18000.
    In April my income will increase by 450 child tax.
    In July my maternity stops and if I go back to work as before I will get £325 instead.
    Council said they would deduct the debt from any new claim I make (also have 1200 housing benefit overpayment) it's like hesitating pulling a plaster off dealing with think the government which I know has got me into a lot of this mess.
    My boyfriend has paid my rent since our daughter was born month to make sure I can get by, and is wanting to move in with us (which would be great support all round) but I wouldn't want to jeopardise any debt help I could get by him living here.
    He earns about 1200/month, would he be expected to use most of his money to pay for the house? I am just so confused as what to do for the best and I don't want to get into anymore trouble. Obviously the best for me and my children is my debt gone in a year.
    I know this is long and complicated but any advice appreciated.
    Basically - with all my income changes plus my boyfriend moving in, would I qualify for a DRO?
    And would I even qualify without?
    I've done a few budget planners and my outgoings don't currently include clothing and car maintenance ect but I would like to have the money for that in my budget if it is reasonable for a DRO obviously.
    Income with bf moving in April -
    1200
    560
    330 approx tax credits by calculator
    192
    160 = 2442 (2207 when I go back to work)
    But surely my food and energy would increase? I'm going I'm circles here
    Thank you in advance if anyone made it to the end of all of that
Page 1
    • MarmaladeMamma
    • By MarmaladeMamma 5th Jan 18, 1:59 AM
    • 4 Posts
    • 0 Thanks
    MarmaladeMamma
    • #2
    • 5th Jan 18, 1:59 AM
    • #2
    • 5th Jan 18, 1:59 AM
    Apologies for grammatical errors I'm typing on a mobile in the middle of the night...
    • Smk
    • By Smk 5th Jan 18, 2:58 AM
    • 1 Posts
    • 1 Thanks
    Smk
    • #3
    • 5th Jan 18, 2:58 AM
    • #3
    • 5th Jan 18, 2:58 AM
    Your debts need to be £20,000 or less. Note, priority debts such as council tax, court fines are not included in this. DRO costs £90.

    I suggest you visit your local citizens advice bureau or get in touch with step change to get all the information you need - both about DROs and your situation as a whole. Lots of info online too. I did try to post useful links but as i am a new member i am not yet allowed to do so.

    If your boyfriend does move in, your landlord needs to know and ofcourse this will impact on household costs.

    I suggest you do not withhold information from the council as this can go against you.

    All the best

    (Source: support work around debt managememt and housing issues etc. for 10 years)
    • fatbelly
    • By fatbelly 5th Jan 18, 4:11 PM
    • 11,773 Posts
    • 8,867 Thanks
    fatbelly
    • #4
    • 5th Jan 18, 4:11 PM
    • #4
    • 5th Jan 18, 4:11 PM
    Get your benefits and council tax sorted out first, and your situation as stable as you can. Then talk to CAB or Stepchange about a DRO

    HB overpayments are qualifying debts, and discharged at the end of the 12 months as long as you do not admit, or get found guilty of, fraud. Your existing award will have a weekly deduction up to the point a DRO is approved.

    Council Tax is also a qualifying debt (previous post not correct on this point) but for current year council tax you must have lost the right to pay in instalments.

    I note you have a car - this must be valued at under £1000 as one of the qualifying conditions.

    In summary, a DRO probably is your way forward but you have a lot of work to do first.
    • MarmaladeMamma
    • By MarmaladeMamma 5th Jan 18, 6:15 PM
    • 4 Posts
    • 0 Thanks
    MarmaladeMamma
    • #5
    • 5th Jan 18, 6:15 PM
    • #5
    • 5th Jan 18, 6:15 PM
    Thank you both for your fast replies, re-reading my post I can see I was quite frantic last night. I will be getting all of my.papers together this weekend and I plan on calling national debt line and the council (!) on Monday.
    I suppose the main thing I wanted advice on is how much my partner would be expected to contribute to the household. Splitting the bills rent and food in some way I understand but a lot of the budget forms ask about clothing and hobbies ect - would he be expected to contribute to my two older children's expenses like uniforms? My biggest concern is I end up with too much extra money to myself and not qualify. Just to clarify if we he were to move in:
    My income : 1200 approx maximum (1000 when I return to work in july)
    His income: 1200 approx
    My outgoings without him: 1970 approx (?)
    I really appreciate any 2 cents on this, thank you
    • fatbelly
    • By fatbelly 5th Jan 18, 7:07 PM
    • 11,773 Posts
    • 8,867 Thanks
    fatbelly
    • #6
    • 5th Jan 18, 7:07 PM
    • #6
    • 5th Jan 18, 7:07 PM
    Most advisers would want to do a joint budget, and then allocate the expenses proportionate to the income in order to work out your individual surplus..

    But he could easily have his own expenses that would be nothing to do with you (his own debts? his own car?) so there has to be a bit of flexibility with that. There is no one method of calculating surplus income that DRO intermediaries (and I am one) have to follow. They just have to be able to justify their figures to the DRO Team if asked, though we rarely are.
    • MarmaladeMamma
    • By MarmaladeMamma 5th Jan 18, 7:09 PM
    • 4 Posts
    • 0 Thanks
    MarmaladeMamma
    • #7
    • 5th Jan 18, 7:09 PM
    • #7
    • 5th Jan 18, 7:09 PM
    Thank you both for your fast replies, re-reading my post I can see I was quite frantic last night. I will be getting all of my.papers together this weekend and I plan on calling national debt line and the council (!) on Monday.
    I suppose the main thing I wanted advice on is how much my partner would be expected to contribute to the household. Splitting the bills rent and food in some way I understand but a lot of the budget forms ask about clothing and hobbies ect - would he be expected to contribute to my two older children's expenses like uniforms? My biggest concern is I end up with too much extra money to myself and not qualify. Just to clarify if we he were to move in:
    My income : 1200 approx maximum (1000 when I return to work in july)
    His income: 1200 approx
    My outgoings without him: 1970 approx (?)
    I really appreciate any 2 cents on this, thank you
    • ToxtethO'Grady
    • By ToxtethO'Grady 12th Jan 18, 6:08 PM
    • 90 Posts
    • 44 Thanks
    ToxtethO'Grady
    • #8
    • 12th Jan 18, 6:08 PM
    • #8
    • 12th Jan 18, 6:08 PM
    I would agree with Fatbelly wait until your benefits situation has been resolved and all debts included.

    With you not informing the council of your change in circumstances this could be classed as an offence and will not just be viewed as arrears so there may be additional costs such as a civil penalty. Even with the penalty this would go in to a DRO. If any of your debts are classed as fraud due to misinformation or not making the benefits agency or council aware of a change in circumstances then you will still be liable after any insolvency is finished.

    It's hard I know but you would be best sorting your benefits by being as open as possible explain why you didn't advise of your change in circumstances and hopefully they may view it just as arrears. Get your income and expenditure settled down and then apply for a DRO through one of the intermediaries.

    If your DRO is rejected or revoked you can't apply for another 6 years so don't waste £90 you may not be able to afford.

    Everyone on here will help with any questions or worries until you get to the stage of applying.
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