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  • FIRST POST
    • PoppyJADE
    • By PoppyJADE 7th Jul 17, 10:42 PM
    • 1Posts
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    PoppyJADE
    Advice on DRO
    • #1
    • 7th Jul 17, 10:42 PM
    Advice on DRO 7th Jul 17 at 10:42 PM
    Hello everyone

    ive currently applied for my first DRO, awaiting approval. i just a couple questions i need to ask and im not getting anything from the internet.

    Long story short single parent, £5,000 worth of debt, living off -£27 a month... how i do it i dont know

    as its a 12 month period of not paying the £80 a week i was paying, my money situation is going to become healthier than it was, and ive read if circumstances change as in a increase of income i have to report it? when do i let them know when this happens..?
Page 1
    • fatbelly
    • By fatbelly 8th Jul 17, 6:24 AM
    • 11,221 Posts
    • 8,389 Thanks
    fatbelly
    • #2
    • 8th Jul 17, 6:24 AM
    • #2
    • 8th Jul 17, 6:24 AM
    Basic Criteria for a debt relief order :

    •Must not be a homeowner,
    • Debts less than £20,000,
    • Can have a car worth up to £1000,
    • No other assets of more than £1000 (*see below),
    • Must have £50 or less left at month end, after all essential payments have been made (not inc debt repayments),

    OK, your debts are now frozen.

    If you move outside those criteria during the 12 months, you should report this to the DRO team. I would suggest, if unsure, you first contact the intermediary who submitted your application.

    Your surplus income has been assessed as -27 so you would need an income increase of 78 per month to cause a problem? Is that likely?

    With assets received during the moratorium, the rules are a little more flexible:

    •If property worth more than £1,000 is received during the moratorium the order might not be revoked if it is reported as soon as possible and is worth less than 50% of the total debts scheduled.
    •Where the amount received is between £1,000 and £1,990 (up from £1,850) the DRO Team will consider a number of factors including the client’s health, age, liabilities etc. and may agree not to revoke the DRO.
    •Where the amount received is more than £1,990 (up from £1,850) the DRO is much more likely to be revoked but this is still a discretionary decision and will depend on the facts of the case

    Hope that helps
    • jaxsmar
    • By jaxsmar 11th Jul 17, 5:38 PM
    • 364 Posts
    • 1,484 Thanks
    jaxsmar
    • #3
    • 11th Jul 17, 5:38 PM
    • #3
    • 11th Jul 17, 5:38 PM
    Hi I'm looking at dro advise can I ask a question ..after the first year what happens regarding the £50.00 a month limit. I'm trying to get all the facts as poppyjade said not all the advice is available. Years 2/3/4/5/6 is it still only £50? Its just a long time and hopefully things would improve but I'm no psychic!
    • fatbelly
    • By fatbelly 11th Jul 17, 10:06 PM
    • 11,221 Posts
    • 8,389 Thanks
    fatbelly
    • #4
    • 11th Jul 17, 10:06 PM
    • #4
    • 11th Jul 17, 10:06 PM
    Hi I'm looking at dro advise can I ask a question ..after the first year what happens regarding the £50.00 a month limit. I'm trying to get all the facts as poppyjade said not all the advice is available. Years 2/3/4/5/6 is it still only £50? Its just a long time and hopefully things would improve but I'm no psychic!
    Originally posted by jaxsmar
    After 12 months the DRO is over and done with.

    You can win the lottery and work as chairman of ICI - your debts don't come back.
    • jaxsmar
    • By jaxsmar 12th Jul 17, 3:56 PM
    • 364 Posts
    • 1,484 Thanks
    jaxsmar
    • #5
    • 12th Jul 17, 3:56 PM
    • #5
    • 12th Jul 17, 3:56 PM
    Thank you fatbelly a weight has been lifted. Though I'm hoping not too go down that route. However life has a way of throwing a curve ball. I need to be prepared..
    Penny wise pound foolish.
    Loan 5500.00 now 700.00 now 341.00

    Cc1 9000 Cc2 4500 daughters
    No spend challenge.
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