Debt Relief Orders (DRO) - Information & help thread

Rabbitx · 14 May 2017 at 11:01AM

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?

fatbelly · 14 May 2017 at 12:26PM

Rabbitx wrote: »

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?

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 · 15 May 2017 at 12:00PM

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?

fatbelly · 15 May 2017 at 1:13PM

Rabbitx wrote: »

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?

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 · 15 May 2017 at 1:18PM

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!

sourcrates · 15 May 2017 at 1:23PM

Rabbitx wrote: »

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?

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

Rabbitx · 15 May 2017 at 1:30PM

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.

LT1001 · 21 May 2017 at 12:12PM

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 · 21 May 2017 at 12:59PM

LT1001 wrote: »

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.

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.

LT1001 · 22 May 2017 at 11:51AM

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.

Debt Relief Orders (DRO) - Information & help thread

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