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    • fatbelly
    • By fatbelly 10th May 17, 11:19 PM
    • 10,663 Posts
    • 7,959 Thanks
    fatbelly
    Thank you. Who are the best people to speak to about a DRO?
    Originally posted by chickadee2014
    Speak to Stepchange or CAB

    Sorry me again been doing some more research. I pay the minimum each month of my debts which doesn't leave me with any disposable income. But if these debts are taken away I'd have a lot of disposable income as partner pays mortgage/bills. Would I still be accepted do you think?
    Originally posted by chickadee2014
    Speak to Stepchange or CAB

    Do you own your property jointly with your partner? That would disqualify you from a DRO.
    • chickadee2014
    • By chickadee2014 11th May 17, 3:46 AM
    • 4 Posts
    • 0 Thanks
    chickadee2014
    No he owns it. All I have is a car to my name. Thanks for your help
    • fatbelly
    • By fatbelly 11th May 17, 7:13 AM
    • 10,663 Posts
    • 7,959 Thanks
    fatbelly
    Based on what you have told us you would not qualify for a DRO but would be suited to a dmp over 3-5 years.
    • Rabbitx
    • By Rabbitx 11th May 17, 12:06 PM
    • 272 Posts
    • 1,120 Thanks
    Rabbitx
    Debt Relief Order advice
    Hi,
    I have been advised by the Money Advice Service that a Debt Relief Order would be most suited, but have questions before I commit myself.
    I've been on ESA for severe depression for 6 months, and debts have spiralled in that time. A DRO will be very helpful health wise, but I want to balance this with regaining confidence/ a feeling of bouncing back.
    I was self employed for 3 years, and would like to return to this...I have registered with the Business National Debt Line, to get advice about whether this is feasible under a personal DRO.
    If, as I hope it does, my income increases, at what point could it nullify a DRO? : is there a break off point. If I apply, and then get a 17k job for example, will I have wasted my time? I intend to take up employment as well as being self employed, and to set up 2 basic accounts with different banks...Barclays and Virgin.
    On top of personal living expenses, once the DRO is calculated, is everything taken to pay debts, or do they allow a weekly or monthly margin of error?
    My income, if I am able to continue, is likely to fluctuate. How do I manage this without defaulting on the DRO?
    I am single, with no dependants, in privately rented accommodation, with a section 21 notice hanging over me, an in debt to the hilt.
    I also worry because I owe money to friends who have helped me out over this period. Can I include repaying them in my budget? They might not be too happy if I tell them I can't because of the DRO, and I certainly don't want to let them down. They are a priority too!
    Thankyou for reading.
    Last edited by Rabbitx; 11-05-2017 at 12:20 PM.
    • fatbelly
    • By fatbelly 11th May 17, 1:09 PM
    • 10,663 Posts
    • 7,959 Thanks
    fatbelly
    Hi,
    1. If, as I hope it does, my income increases, at what point could it nullify a DRO?

    2. On top of personal living expenses, once the DRO is calculated, is everything taken to pay debts, or do they allow a weekly or monthly margin of error?

    3. I am single, with no dependants, in privately rented accommodation, with a section 21 notice hanging over me, an in debt to the hilt.

    4. I also worry because I owe money to friends who have helped me out over this period. Can I include repaying them in my budget?
    Originally posted by Rabbitx
    I've distilled your post into 4 questions.

    1. At the point your surplus income exceeds 50 per month the DRO can be revoked.

    2. Payments to debts are not an allowable expense due to the fact (with one exception, see below) you are not allowed to make payments to your debts during the moratorium, and your creditors are not allowed to demand payment.

    3. Rent arrears on your present tenancy is the one debt to which you are allowed to make payment, out of your max 50 per month surplus. If your s21 has been issued because of rent arrears then it may help your landlord to know that if he allows you to stay he can receive payment against the arrears but if he evicts you then the whole amount will be made unenforceable by the DRO.

    4. Your friends must be listed as creditors and you will not be allowed to make any payment to them.

    Come back if any of that's not clear.
    • Rabbitx
    • By Rabbitx 11th May 17, 1:26 PM
    • 272 Posts
    • 1,120 Thanks
    Rabbitx
    Thank you....plenty to think about!
    Rabbitx
    • Rabbitx
    • By Rabbitx 11th May 17, 1:34 PM
    • 272 Posts
    • 1,120 Thanks
    Rabbitx
    With a debt management plan, would the same conditions apply?
    • sourcrates
    • By sourcrates 11th May 17, 1:58 PM
    • 10,547 Posts
    • 10,340 Thanks
    sourcrates
    With a debt management plan, would the same conditions apply?
    Originally posted by Rabbitx
    No, it's unregulated, there are no"official" conditions or regulations in a DMP.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
    Bankruptcy And Living With It, boards. I'm a volunteer to help the boards run smoothly, and I can move and merge posts there.
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.

    For free debt advice, contact either : Stepchange, National Debtline, or, CAB.
    For Legal advice see : http://legalbeagles.info/
    • Rabbitx
    • By Rabbitx 14th May 17, 11:01 AM
    • 272 Posts
    • 1,120 Thanks
    Rabbitx
    In terms of point 1. When surplus income rises above a surplus of 50 a month, the DRO can be revoked, surely if my income increases, simply bigger payments will be made towards my creditors, keeping me within the 50 surplus? ... Or do the rules simply state that if my income is more than 50 pm greater than my budget, that I will automatically be disqualified?
    Last edited by Rabbitx; 14-05-2017 at 11:10 AM.
    • fatbelly
    • By fatbelly 14th May 17, 12:26 PM
    • 10,663 Posts
    • 7,959 Thanks
    fatbelly
    In terms of point 1. When surplus income rises above a surplus of 50 a month, the DRO can be revoked, surely if my income increases, simply bigger payments will be made towards my creditors, keeping me within the 50 surplus? ... Or do the rules simply state that if my income is more than 50 pm greater than my budget, that I will automatically be disqualified?
    Originally posted by Rabbitx
    As your income increases you will get less help from benefits - there could also be more legitimate expenses - so it doesn't necessarily mean the limit will be breached. That's why I am careful to talk about surplus income.

    But you are missing a fundamental point about DROs that you are forbidden to make payments to your creditors during the moratorium and they are forbidden from asking you for payment. It's about relief from your debts.

    There are a couple of exceptions but that's the general rule.
    • Rabbitx
    • By Rabbitx 15th May 17, 12:00 PM
    • 272 Posts
    • 1,120 Thanks
    Rabbitx
    Thank you. What do you mean by more legitimate expenses?
    I am guessing you're referring to things like funeral costs, caring for someone, but
    For example, my washing machine May last another year or may not.
    I have never owned a car, but for employment in Ipswich, it is becoming almost essential.
    My daughter and her family are about to move some distance from me, and I want to be able to visit them.
    Am apprehensive about taking this step, though would welcome the relief from the anxiety.
    Should I provide monthly or weekly budgets?
    Last edited by Rabbitx; 15-05-2017 at 12:02 PM.
    • fatbelly
    • By fatbelly 15th May 17, 1:13 PM
    • 10,663 Posts
    • 7,959 Thanks
    fatbelly
    Thank you. What do you mean by more legitimate expenses?
    I am guessing you're referring to things like funeral costs, caring for someone, but
    For example, my washing machine May last another year or may not.
    I have never owned a car, but for employment in Ipswich, it is becoming almost essential.
    My daughter and her family are about to move some distance from me, and I want to be able to visit them.
    Am apprehensive about taking this step, though would welcome the relief from the anxiety.
    Should I provide monthly or weekly budgets?
    Originally posted by Rabbitx
    Legitimate expenses would include (but not limited to )

    rent
    council tax
    electricity
    water
    gas
    travel costs
    phone costs (landline and mobile)
    tv licence
    food & housekeeping
    clothing
    haircuts

    your intermediary will work with weekly or monthly figures
    • Rabbitx
    • By Rabbitx 15th May 17, 1:18 PM
    • 272 Posts
    • 1,120 Thanks
    Rabbitx
    Thankyou so much X. Will try to bite the bullet! I had no idea before the depression hit, how much support and understanding there is...Am enormously grateful.

    ...and yes...lol...definately need a haircut!...photo not provided, but wild and whimsical, and unprofessional!
    Last edited by Rabbitx; 15-05-2017 at 1:20 PM.
    • sourcrates
    • By sourcrates 15th May 17, 1:23 PM
    • 10,547 Posts
    • 10,340 Thanks
    sourcrates
    In terms of point 1. When surplus income rises above a surplus of 50 a month, the DRO can be revoked, surely if my income increases, simply bigger payments will be made towards my creditors, keeping me within the 50 surplus? ... Or do the rules simply state that if my income is more than 50 pm greater than my budget, that I will automatically be disqualified?
    Originally posted by Rabbitx
    Rabbitz,

    As Fatbelly points out, you dont make any payments to your creditors on a DRO, thats the fundamental point of the process.

    Do your budget correctly, if you meet all the other criteria, and you have less than 50 per month left after all other essential expenses, (not inc debt repayments) then you will be approved.

    Once approved, you simply wait 12 months, (the moratorium period) after which all your qualifying debts are written off.

    You make no creditor payments, they cant ask you to pay either.

    Please, if your unsure how the process works, check out this link :

    https://www.nationaldebtline.org/EW/information/debt_relief_orders/Pages/dro.aspx
    I'm a Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
    Bankruptcy And Living With It, boards. I'm a volunteer to help the boards run smoothly, and I can move and merge posts there.
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.

    For free debt advice, contact either : Stepchange, National Debtline, or, CAB.
    For Legal advice see : http://legalbeagles.info/
    • Rabbitx
    • By Rabbitx 15th May 17, 1:30 PM
    • 272 Posts
    • 1,120 Thanks
    Rabbitx
    Thank you. I have seen the detailed budget planner on here, and will work it out, and cross check it with with the information I have already given to the Money Advice Service. This is very reassuring.
    It's important for me to feel a sense of an ability to progress and care, without the glass ceiling / depression/ poverty trap, it's not just about money, but having doors open to opportunity! So may be this is right.
    Last edited by Rabbitx; 15-05-2017 at 1:48 PM.
    • LT1001
    • By LT1001 21st May 17, 12:12 PM
    • 3 Posts
    • 1 Thanks
    LT1001
    New member and doing my research/preparation, I have a few quick questions regarding a DRO if thats ok?

    1) I am behind on my Council Tax (Bailiffs imminent but not a major concern). Do I continue to make the usual monthly payments direct to council and include this in my budget or does the entire years' bill default and go into the debt?

    2) Do I declare joint debts (e.g. Council Tax) as a full amount or 50% (my share)

    3) There are several small debts which have been sold on and not on my credit report, do I need to find the letters and include these. (if included it takes my debt to 20.5k and full on bankruptcy territory unless I wait until another debt is reduced)

    I am married (both working) with 3 Children, we plan on doing 2 x DRO and waiting until our youngest is in Senior school in 2 years time before my wife goes to work full time. We can just about survive now, but there is almost nothing in the kitty for debts/unexpected costs.
    • sourcrates
    • By sourcrates 21st May 17, 12:59 PM
    • 10,547 Posts
    • 10,340 Thanks
    sourcrates
    New member and doing my research/preparation, I have a few quick questions regarding a DRO if thats ok?

    1) I am behind on my Council Tax (Bailiffs imminent but not a major concern). Do I continue to make the usual monthly payments direct to council and include this in my budget or does the entire years' bill default and go into the debt?

    2) Do I declare joint debts (e.g. Council Tax) as a full amount or 50% (my share)

    3) There are several small debts which have been sold on and not on my credit report, do I need to find the letters and include these. (if included it takes my debt to 20.5k and full on bankruptcy territory unless I wait until another debt is reduced)

    I am married (both working) with 3 Children, we plan on doing 2 x DRO and waiting until our youngest is in Senior school in 2 years time before my wife goes to work full time. We can just about survive now, but there is almost nothing in the kitty for debts/unexpected costs.
    Originally posted by LT1001
    Not sure on the council tax, but i would assume the full year will need to be included.

    I do know all your unsecured debts have to be included in a DRO.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
    Bankruptcy And Living With It, boards. I'm a volunteer to help the boards run smoothly, and I can move and merge posts there.
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.

    For free debt advice, contact either : Stepchange, National Debtline, or, CAB.
    For Legal advice see : http://legalbeagles.info/
    • LT1001
    • By LT1001 22nd May 17, 11:51 AM
    • 3 Posts
    • 1 Thanks
    LT1001
    I have had time to do more research and if I am correct I have to include this years CT as I have lost the ability to pay by instalments, which is a kick in the proverbial as without that included on the debt list I would be comfortably under 20k.

    Would I still be eligible for a DRO if I put all my effort into reducing the outstanding council tax arrears (as it is a priority debt) to the point where I'm under 20k? I know the cost of doing this is almost the same as applying for bankruptcy but I understand that's far more complicated than a DRO.
    • sourcrates
    • By sourcrates 22nd May 17, 12:16 PM
    • 10,547 Posts
    • 10,340 Thanks
    sourcrates
    I have had time to do more research and if I am correct I have to include this years CT as I have lost the ability to pay by instalments, which is a kick in the proverbial as without that included on the debt list I would be comfortably under 20k.

    Would I still be eligible for a DRO if I put all my effort into reducing the outstanding council tax arrears (as it is a priority debt) to the point where I'm under 20k? I know the cost of doing this is almost the same as applying for bankruptcy but I understand that's far more complicated than a DRO.
    Originally posted by LT1001
    Yes, as a priority debt you could not be accused of favoring one creditor over another.

    In reality a DRO is very simple to set up, and is far less invasive than bankruptcy, there are no interviews or regular checks to be made, its a much simpler process.

    I think you have the basis of a good plan.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
    Bankruptcy And Living With It, boards. I'm a volunteer to help the boards run smoothly, and I can move and merge posts there.
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.

    For free debt advice, contact either : Stepchange, National Debtline, or, CAB.
    For Legal advice see : http://legalbeagles.info/
    • LT1001
    • By LT1001 22nd May 17, 12:23 PM
    • 3 Posts
    • 1 Thanks
    LT1001
    Thanks, stress is driving me insane. I had 1 heart attack already don't really fancy another.
    So the new plan is pay down the priority debt and get under the threshold then apply for DRO
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