Am I eligible for DRO?

Whataboutthat · 29 August 2017 at 11:06PM

Hi all.

Will try to keep it brief. Basically been getting into debt since becoming single mum. Owe about 9000. Paid every month the payments but have been breaking myself and going without in order to do this and I can't do it anymore. Am on income support and other benefits. Is child maintenance classed as income? I get this from my son's father but it goes on my son and what he needs each week so don't feel it fair for it to be included. I have done a budget sheet of expenses and my outgoings are more then my income and the pressure is really getting to me now

I recently sold my car for 4k. In great condition it would have been worth 5k but it had some stuff wrong with it which has been documented and have kept receipts of payment. I had to buy a washing machine as mine packed up that week and cooker. Now my bed is broken! I am looking at cheap second hand ones. Just wondered will this be looked upon badly? I really need these items for day to day life. I have a private loan of 1000 which I will pay off and am looking to pay my other debtors 1k each too then that's my car payment gone. I read that I can't favour one debtor over another. Is thus right? I'm so confused.

Any advice would be greatly received.

sourcrates · 30 August 2017 at 12:26AM

Hi,

I think child maintenance is classed as income, but you need to check with an intermediary before hand.

Some info here :

https://www.citizensadvice.org.uk/debt-and-money/debt-solutions/debt-relief-orders/debt-relief-orders-explained/how-income-debts-and-belongings-are-assessed-for-a-debt-relief-order/

You will need to declare the car payment, but it should be ok.

One think you must do is have a balanced budget, £50 or less per month is the criteria, just balance it for the purposes of the DRO, it isn't checked up on.

Whataboutthat · 30 August 2017 at 7:41AM

Hi. Thanks so much for replying. I am going to speak to somebody from step change today to try and get the ball rolling. What do you mean by negative balance? Sorry if that seems dumb. I cannot be in minus at all? Is that what you mean?

DorisTrousers · 30 August 2017 at 9:52AM

Child maintenance is classed as income, absolutely. The only "exempt" incomes are DLA/PIP or Attendance Allowance.

Whether you present a negative or a nil doesn't really matter, but I have presented hundreds of cases with negative D.I's and never had one queried. My own personal opinion, and I accept others will feel differently, was that there was more wriggle room with a minus figure in case circumstances improved somewhat.

fatbelly · 30 August 2017 at 8:20PM

Whataboutthat wrote: »

Hi all.

Will try to keep it brief. Basically been getting into debt since becoming single mum. Owe about 9000. Paid every month the payments but have been breaking myself and going without in order to do this and I can't do it anymore. Am on income support and other benefits. Is child maintenance classed as income? I get this from my son's father but it goes on my son and what he needs each week so don't feel it fair for it to be included. I have done a budget sheet of expenses and my outgoings are more then my income and the pressure is really getting to me now

I recently sold my car for 4k. In great condition it would have been worth 5k but it had some stuff wrong with it which has been documented and have kept receipts of payment. I had to buy a washing machine as mine packed up that week and cooker. Now my bed is broken! I am looking at cheap second hand ones. Just wondered will this be looked upon badly? I really need these items for day to day life. I have a private loan of 1000 which I will pay off and am looking to pay my other debtors 1k each too then that's my car payment gone. I read that I can't favour one debtor over another. Is thus right? I'm so confused.

Any advice would be greatly received.

Child Maintenance is income. Doris is right that the only "exempt" incomes are DLA/PIP or Attendance Allowance.

A negative budget is no problem. I used to avoid them as I thought it attracted attention but frankly most of my clients are negative now that benefits have reduced and everything else has gone up!

When the dust settles after your purchase of essential household goods (buy a decent bed!), you need to be left with less than £1000 in savings and a car (if you have one) valued at less than £1000 on Parkers guide.

You can't favour one creditor over another in the run-up to a DRO. Pay everyone nothing.

A private loan is a loan and therefore has to be included. A gift is a different matter.

Am I eligible for DRO?

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