Dro & income

emmat123
emmat123 Posts: 10 Forumite
in IVA & DRO
Just wondering, whilst considering a DRO (not for me) I understand you qualify if you only have £50 disposable income left after outgoings - does the partners (live together) income get included in that even though the debts aren't in their name?

Comments

  • National_Debtline
    National_Debtline Posts: 7,998 Organisation Representative
    First Post First Anniversary Combo Breaker
    Hi Emma


    I can't speak for the methods of other agencies who set up DROs, but the following is our general approach when dealing with an applicant who lives with a spouse/partner:


    We will work out a joint household budget showing all income and outgoings. We will then work out the applicant's share of any disposable income by calculating what proportion of the household income they receive. For example, if both the applicant and their partner earn exactly the same amount, and the joint budget shows disposable income of £80, the applicant's share of this will be £80 x 50% = £40.


    This helps to ensure that our DRO applications are not rejected by the Insolvency Service, which could be the case if they felt that an applicant was paying more than their fair share of household bills. It does not make the spouse/partner liable or responsible in any way for the applicant's debts.


    I hope that helps to answer your question.


    Dennis
    @natdebtline
    We work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps
  • fatbelly
    fatbelly Posts: 20,457 Forumite
    Name Dropper First Anniversary First Post Cashback Cashier
    The answer is basically no. Only your income is counted. Does that cause an issue in your case?
  • emmat123
    emmat123 Posts: 10 Forumite
    Thanks
    Its not for me, Im actually a creditor owed money and this DRO landed on my doorstep from the debtor.....I just find it incredibly difficult to believe that both he and his partner have such little disposable income left over - I have been made aware of the lifestyle they lead. I just feel duped.
  • fatbelly
    fatbelly Posts: 20,457 Forumite
    Name Dropper First Anniversary First Post Cashback Cashier
    edited 5 June 2015 at 2:43PM
    emmat123 wrote: »
    Thanks
    Its not for me, Im actually a creditor owed money and this DRO landed on my doorstep from the debtor.....I just find it incredibly difficult to believe that both he and his partner have such little disposable income left over - I have been made aware of the lifestyle they lead. I just feel duped.

    It presumably landed on your doorstep from the DRO Unit.

    You have 30 days to object to the granting of the order

    Presumably you would do so on the grounds:

    that information supplied by the debtor, or in support of the debtor’s application, was incomplete, incorrect or misleading;

    You would need to have some knowledge of the debtor's (not the partner's) income/assets

    I hope it's not one of mine!
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