Debt Relief Orders (DRO) - Information & help thread

sourcrates wrote: »

As far as i am aware, and Fatbelly will correct me if i`m wrong, but i dont think any checks are done on your bank account, for example, you do not have to send in copies of bank statements.

The only way they would know is if you told them.

The whole DRO process relies (mainly) on the honesty of the debtor.

That's right.

Again it's one of those cases that they can check what they want. But in practice £90 doesn't buy much routine checking, other than a credit check and a check of the insolvency records.

Unless it's critical that you go for a DRO now (bailiffs acting for example) then a bit more of a gap between the preference and the application wouldn't go amiss.

I'm currently having to wait a few week to send my application in because I did a bit of overtime a few week ago.. so this is delaying everything but in the meantime can I offer a pound a month?? The reason I'm saying this is because of obvious grief of companies one of which as refused a pound? I thought they couldn't refuse?? Cheers

I have a personal loan with a balance of £11,000 and a credit card with a balance of £1,800 both of which are solely in my name with an outgoing monthly cost of £300. My monthly income is £990

On top of this, I have 3 young children and a wife who is not in employment. Because of her circumstances changing(having to be a house wife due to looking after the children) I am also paying some of her debts(credit card/store cards/care insurance).

We jointly receive working tax credit, child tax credit, housing benefit and council tax benefit

The car which she drives is in her name(value under £1,000) and our monthly rent is in both our names.

I am very tempted to go for a D.R.O. but not sure how it would work with regards to me paying towards 'debts' that are in her name and also receiving 'joint' benefits.

Would it be easier to simply apply for one based solely on what 'debts' that I have in my name only or should I include what I pay towards her 'debts'?

And before anyone asks, despite the benefits that we receive, we are seriously struggling financially on a monthly basis

fatbelly wrote: »

I can believe you're struggling. That's not a high wage, and your HB/CTB probably leaves a lot of rent/council tax still to pay.

Payments towards her debts would not be a legitimate expense but if your income/expenditure as a couple shows less than £50 surplus before debt payments, that's fine. If it's less than £100, that's probably still OK as it's only your income/expenditure that goes on the application.

How much are her debts? Maybe a pair of DROs is the way forward.

You need to have a chat with an Intermediary. You could try CAB or Stepchange or National Debtline.

Thank you for the response.

Her debts are on credit cards and total approx £5,000.

Ideally we did only want one of us to go for the DRO but if it will work in our favor to do a joint one then perhaps we will.

When I initially took out the loan in my name, I was also on more money from work so my circumstances and obviously having another child have changed from when I originally took it out.
When she received the credit cards, she was also in full time employment.

Thinking a joint DRO will be the way forward and we will look to seek some more advice

ch1978 wrote: »

Thank you for the response.

Her debts are on credit cards and total approx £5,000.

Ideally we did only want one of us to go for the DRO but if it will work in our favor to do a joint one then perhaps we will.

When I initially took out the loan in my name, I was also on more money from work so my circumstances and obviously having another child have changed from when I originally took it out.
When she received the credit cards, she was also in full time employment.

Thinking a joint DRO will be the way forward and we will look to seek some more advice

There's no official minimum debt level but if she has 5k of debt and <£50 of surplus then it's definitely something she should consider.

It would be 2 x DROs, with 2 x £90 fees