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    • fatbelly
    • By fatbelly 3rd Sep 16, 1:02 PM
    • 10,089 Posts
    • 7,562 Thanks
    fatbelly
    As it sounds like the overdraft will be going, you do need to open a new account unconnected to your debts.

    You also need to sort out whose debt is the benefit overpayment*

    The worst case is that it's joint, in which case

    your liability = 15000 + 500 +2800
    his = 19300 + 500+ 2800

    in which case he would need bankruptcy

    Why don't you go first, and if that sorts the HB o/p, he goes next? Otherwise, he goes bankrupt.

    * Checked the rules on this, and it seems the overpayment is recoverable from:

    • claimant
    • claimant’s partner, if they were members of the same household, both at the time of the overpayment and when it is being recovered

    Another question - is the overdraft at it's maximum now?
    Last edited by fatbelly; 03-09-2016 at 1:19 PM. Reason: hb o/p rules checked
    • SortingMyLife
    • By SortingMyLife 3rd Sep 16, 3:27 PM
    • 16 Posts
    • 40 Thanks
    SortingMyLife
    Thanks.
    It is near its limit some of the month but not permanently. There's a little bit of leeway.

    I'm going to try and find out if the housing benefit comes under my name or both. He's so close to the DRO limit. I will also check wherever I can for exact amounts and details - are the free credit check people enough or do I need a trial from somewhere? I've got some paperwork but not all.

    Do I need account numbers for the debts?

    Thanks for your reply. It's been hard work digging my head out from the sand that I've had it buried in for so long.
    • fatbelly
    • By fatbelly 3rd Sep 16, 4:45 PM
    • 10,089 Posts
    • 7,562 Thanks
    fatbelly
    Hi

    The report the DRO team use is Experian, so a £2 statutory report from them is worth getting. Don't subscribe to any service that charges as it's not easy to unsubscribe.

    Ideally you want reference numbers for the debts but if there are one or two without, that shouldn't stop your intermediary from submitting the application.

    I think the HB situation is as I added to my last post - see what stepchange or national debtline say. The account will be in your name but the partner can be pursued for it, if they were members of the same household, both at the time of the overpayment and when it is being recovered. And I think that makes it a 'liability' as far as his involvency is concerned.

    I was asking about the overdraft in case there was £680 space there for his bankruptcy fee.
    • SortingMyLife
    • By SortingMyLife 3rd Sep 16, 10:33 PM
    • 16 Posts
    • 40 Thanks
    SortingMyLife
    Thanks again for the reply. Hmmm, it does seem like Bankruptcy for him might be the only option then. Which makes me feel rubbish as we are both responsible for everything. But there's not much that can be done I guess.

    I've a few things missing from the free credit reports that I don't even think I'm paying but I know they exist in the ether. Any ideas how to trace them?

    If we need the fee for bankruptcy then I think we have family who will help. They know the situation and want to do what they can to ease it for us (we are very lucky that they are so nice about it all).


    What are the bad things about bankruptcy over a DRO? What else would it entail?

    I've filled in the online debt remedy with stepchange and requested a call back for when the kids are back at school next week to see where we go now.

    Thanks again
    • fatbelly
    • By fatbelly 3rd Sep 16, 11:16 PM
    • 10,089 Posts
    • 7,562 Thanks
    fatbelly
    My final post for the day, I think.

    National Debtline have some very good factsheets, including ones on DROs and bankruptcy. For someone in rented accommodation with <£20 per month surplus income and no assets, who is only going bankrupt because their debts exceed the DRO threshold, there would not be much difference between the two.

    Ironically, if you have debts that you know are 'out there' but you have no details, then bankruptcy would suit you as all the debts would automatically be covered whereas in a DRO it is only those that are listed. That would be an advantage of bankruptcy over a DRO.

    Disadvantages would be that a car worth <£1000 is not automatically protected, increased risk of your bank account being frozen, only £20 per month surplus being excluded so more chance of a 3-year income payments agreement/order, higher fees.

    Could things that do not appear on your credit report be more than six years since they defaulted? They would have dropped off. If you haven't paid or acknowledged the debt for 6 years they are statute barred and (preferably this should be evidenced) don't need to be listed on a DRO.

    Some other debts are 'excluded' and so don't count towards the 20k debt limit - I wonder if you are counting any of these - social fund loans, magistrate court fines, student loans, child support arrears, tv licence arrears.
    • SortingMyLife
    • By SortingMyLife 4th Sep 16, 6:10 PM
    • 16 Posts
    • 40 Thanks
    SortingMyLife
    My husband's debt is just one loan. Mine are lots of little bits.
    I think I can find info on one of the ones that isn't showing - an old student overdraft. And the other there was very little left of (couple of hundred) and I think it was passed to Robinson Way so maybe I can scrape together enough info.

    Student loans - does that include overpayments?
    I started Uni about 10 years ago. Found out I was pregnant a week in. Stopped after 5 weeks and no one told me that if I'd have held on a few more weeks I'd not have owed anything - it's a maintenance loan that I got but didn't pay back.
    I pay £5 a month I think - it isn't lumped in with my current standard student loan. Another thing I'll have to query I guess.

    Yeh I guess BR isn't so different then. Our sub 1k car is in my name as the owner so I guess we'd be fine to keep it.

    Thanks so much for replying. It's good to be able to talk it through with someone.

    I feel so much less stressed knowing that we can sort it.
    • fatbelly
    • By fatbelly 4th Sep 16, 7:36 PM
    • 10,089 Posts
    • 7,562 Thanks
    fatbelly
    My husband's debt is just one loan. Mine are lots of little bits.
    I think I can find info on one of the ones that isn't showing - an old student overdraft. And the other there was very little left of (couple of hundred) and I think it was passed to Robinson Way so maybe I can scrape together enough info.

    Student loans - does that include overpayments?
    I started Uni about 10 years ago. Found out I was pregnant a week in. Stopped after 5 weeks and no one told me that if I'd have held on a few more weeks I'd not have owed anything - it's a maintenance loan that I got but didn't pay back.
    I pay £5 a month I think - it isn't lumped in with my current standard student loan. Another thing I'll have to query I guess.

    Yeh I guess BR isn't so different then. Our sub 1k car is in my name as the owner so I guess we'd be fine to keep it.

    Thanks so much for replying. It's good to be able to talk it through with someone.

    I feel so much less stressed knowing that we can sort it.
    Originally posted by SortingMyLife
    Yes it's sortable.

    My understanding is that overpayments of student loans are qualifying debts but I can't find that explicitly in the regulations. So you will have to ask.
    • azzadle
    • By azzadle 10th Oct 16, 2:04 PM
    • 37 Posts
    • 12 Thanks
    azzadle
    5 years and 8 months ago.. Seems like an eternity tbh.

    4 months left and the shackles are off! I can be a sensible person again
    • Nick12345
    • By Nick12345 12th Oct 16, 4:59 AM
    • 1 Posts
    • 0 Thanks
    Nick12345
    Complicated Situation. Homeless in debt but working.
    Hi everyone.

    I'll try not go on to long but my situation is complicated.

    I recently closed my business down. I never really made any money from it but in a desperate attempt to turn things around cut costs and put 110% into it I decided to live in my business premises.

    I closed my business down 6 months ago but I'm stuck living in an industrial unit technically "homeless" i guess. Not sure I have a roof over my head. Prob better than many of the worlds population.

    I am now in full time work. Basic pay take home is about £1400 but i get some overtime. My outgoings this month are £1100. Rent for my unit, loans, overdrafts, credit cards etc. I've recently fallen into the payday loan trap. My life is a mess!

    I can afford to live in a house as I'm paying rent on my business premises (i'm contracted for another 12 months!) I've lived like this for 2 years now. I do have a girlfriend but living together isnt an option until I can pay my way (I wont sponge of her).

    My total debts at the minute are about £13000 although i have some older stuff (should be statute barred).

    I'm stressed. My health is being affected having to work stupid hours just to tread water. My relationship is now cracking.

    For the first time (after having family members suggest it many times) I'm considering bankruptsy or a Debt Relief Order.

    I'm not sure if I qualify for a DRO. If i pull my belt in I guess my dispossable income is above the treshold. But I dont live in a house! If i did i would of defaulted a long time ago and probably would be in the right bracket.

    I know insolvency stays on file for 6 years but so will any defaults CCJ's etc that will be coming my way.

    I've made a mess and bankruptsy DRO etc might just give me a start to sorting my life out.
    • fatbelly
    • By fatbelly 12th Oct 16, 6:12 AM
    • 10,089 Posts
    • 7,562 Thanks
    fatbelly
    Hi everyone...
    Originally posted by Nick12345
    Hi Nick

    Yes, insolvency is the way forward.

    You can't really judge whether a DRO would work yet. You know you will have to stop living where you are and get somewhere else to live, Until you have done that you will not know your spend on rent, council tax, elec, water, gas. So you do not know your surplus income.

    I assume you meet the other DRO criteria such as car worth under £1000.

    So stop paying the 'Rent for my unit, loans, overdrafts, credit cards and payday loans', get a bank account unconnected to your debts and find somewhere to live.

    None of those debts are priority debts for you. Do you pay business rates?

    On the stress side, can you stop having to work silly hours? Is your GP any help? Are there local to you any organisations like this one?

    It would be worth getting a credit report. I recommend a £2 statutory report from Experian. Any of those 'older debts' still showing would have to go into a DRO unless you have proof they are statute barred. In fact they may be a complication that would lead you to choose bankruptcy over a DRO but that's for later.

    Keep posting.
    • wba31
    • By wba31 12th Oct 16, 9:43 AM
    • 2,076 Posts
    • 1,125 Thanks
    wba31
    Hi Nick

    Yes, insolvency is the way forward.

    You can't really judge whether a DRO would work yet. You know you will have to stop living where you are and get somewhere else to live, Until you have done that you will not know your spend on rent, council tax, elec, water, gas. So you do not know your surplus income.

    I assume you meet the other DRO criteria such as car worth under £1000.

    So stop paying the 'Rent for my unit, loans, overdrafts, credit cards and payday loans', get a bank account unconnected to your debts and find somewhere to live.

    None of those debts are priority debts for you. Do you pay business rates?

    On the stress side, can you stop having to work silly hours? Is your GP any help? Are there local to you any organisations like this one?

    It would be worth getting a credit report. I recommend a £2 statutory report from Experian. Any of those 'older debts' still showing would have to go into a DRO unless you have proof they are statute barred. In fact they may be a complication that would lead you to choose bankruptcy over a DRO but that's for later.

    Keep posting.
    Originally posted by fatbelly
    +1 for Fatbelly's advice. In respects of the contract on the unit you're currently residing in, if you stop paying the rent, the remainder of the contract will become a qualifying debt you can include in an insolvency. So if you pay £500 a month for example, the last 12 months could be listed as a £6000 debt to the landlord. Obviously this may then affect whether best solution is DRO or bankruptcy (or anything else) along with the factors that Fatbelly has highlighted
    • Suzie1981
    • By Suzie1981 14th Oct 16, 1:51 PM
    • 15 Posts
    • 5 Thanks
    Suzie1981
    Hi I'm new to this so please bear with me! I have been advised by stepchange to do a dro,i was previously in a dmp but my tax credits dropped and I had to start paying token payments towards my debts. So I have gone through my budget with stepchange and I am waiting on my application being sent out to me! What I was wondering is do i need to do another budget when my application comes through or do they go off the one stepchange and I done the other day as I noticed there was a couple of mistakes on it,nothing major and it still would take me under the £50 threshold. Also do i need to provide my partners bank statements even though the dro will be in my name? I know that they take into account his wages. Thanks in advance for any help.
    • fatbelly
    • By fatbelly 14th Oct 16, 2:23 PM
    • 10,089 Posts
    • 7,562 Thanks
    fatbelly
    Hi I'm new to this so please bear with me! I have been advised by stepchange to do a dro,i was previously in a dmp but my tax credits dropped and I had to start paying token payments towards my debts. So I have gone through my budget with stepchange and I am waiting on my application being sent out to me! What I was wondering is do i need to do another budget when my application comes through or do they go off the one stepchange and I done the other day as I noticed there was a couple of mistakes on it,nothing major and it still would take me under the £50 threshold. Also do i need to provide my partners bank statements even though the dro will be in my name? I know that they take into account his wages. Thanks in advance for any help.
    Originally posted by Suzie1981
    Yes, let your intermediary know about the tweaks you want to make to your expenditure.

    They need to know his income (I can't say what they might require as proof) so they can allocate your part of the expenditure relative to the household expenditure. Does that make sense?

    There is a bit of flexibility to these things
    • Suzie1981
    • By Suzie1981 14th Oct 16, 3:48 PM
    • 15 Posts
    • 5 Thanks
    Suzie1981
    Cheers thanks for clearing that up for me! I will give stepchange a call and let them know.
    • Suzie1981
    • By Suzie1981 14th Oct 16, 4:07 PM
    • 15 Posts
    • 5 Thanks
    Suzie1981
    Oh and 1 last thing I forgot to ask! I said my rent is £400 per month but it's actually £500 but I recieve £100 give or take a few quid each month from housing benefit,should I have told them this in the budget as they didn't ask if I recieved housing benefit.
    • skywatcher44
    • By skywatcher44 20th Oct 16, 10:14 AM
    • 4 Posts
    • 3 Thanks
    skywatcher44
    Tweaks
    When you have Paid the ( To big ! barcode ) £90 You phone your intermediary in my case Stepchange. Any alteration of balances and other figure tweaks can be done then if required
    This is entered by your intermediary onto your final online application . So if altering other figures ensure you will still be within the £0-50 requirement.
    My timeline with Stepchange,
    Fill in details online, budget, debts, Assets ect. When ready request Application pack ( Once you request the AP you cannot alter any online figures ) Otherwise save and exit it saves for 30 days.
    The downloadable Application pack has four A4 forms to complete. Also I sent my latest Bank statement highlighting my salary and Rent, A list of my debts with addresses, a copy of my credit report from Noodle ( As advised ) This was all posted on 4/10/16.
    10/10/16 Phone interview.Assets, Car reg required ( they check online ) and haven't used cards in last 3 mnths ish ? ( Tried to make me wait a few months. Be Firm if Req )
    My final draft with barcode arrived after 13 days on the 17/10/16.
    Paid barcode phoned stepchange tweaked balances DRO Sent online to Official receiver (17/10 ).
    19/10/16 DRO approved ( Not notified by Stepchange ). 20/10/16 9am listed on IS Register..
    Last edited by skywatcher44; 20-10-2016 at 2:05 PM. Reason: Added
    • Suzie1981
    • By Suzie1981 21st Oct 16, 3:09 PM
    • 15 Posts
    • 5 Thanks
    Suzie1981
    Thanks for the help guys. Now I've recieved my application today my budget haso been tweaked! So all is good there. Now I'm panicking as ive checked my noddle report and i have 2 debts which I forgot about! Do i just add them on when sending all my info back? It doesn't take me over the £20000 ,think I'm looking at about £12000 in all my debts added together! Also if credit has been used say in the past 2 months can that go against me?
  • National Debtline
    Hi Suzie


    You should just add on any extra creditor info before sending your forms back to Stepchange. If, as you say, the total remains well below £20K it's not an issue.


    Re: credit taken out in the past two months, that sort of thing would be looked at on a case by case basis. How large were those more recent debts, what was the money used for e.g. paying off particular creditors like family members, etc etc.


    What is more important is to ensure that you do not take out any fresh debts after you have discussed a DRO with Stepchange and requested the application forms, as the Insolvency Service may then conclude that you accrued these extra debts knowing they'd end up getting written off.


    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
    • Suzie1981
    • By Suzie1981 21st Oct 16, 4:36 PM
    • 15 Posts
    • 5 Thanks
    Suzie1981
    Hi Dennis thanks for the advice. It was actually a catalouge i needed a new washing machine as my old 1 broke (i have 3 kids,so i couldnt live without 1) and i had no other way to get one other than on credit,i know this was really stupid of me and if my application is declined then it's just a chance I will have to take i suppose!
    • Suzie1981
    • By Suzie1981 21st Oct 16, 5:00 PM
    • 15 Posts
    • 5 Thanks
    Suzie1981
    Sorry tried to edit my last post but can't! The credit was for £250 and it was in august 2016.
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