Debt relief order

heidiprincess13 · 16 September 2017 at 9:53AM

Hi, I have spoken to my local CAB and we have been discussing a debt relief order.

I am unable to talk to them today but was wondering if anyone could help with some more info.

I have been a director for my husbands limited company, how would this affect the DRO? I do not draw a wage or dividends, not sure why I am a director, lol.

I just don't know what to do. I have about £7000 worth of debt, credit cards and overdrafts, I am just paying the minimum payment each month but now I am not working I am struggling. (Previously worked for the Royal Mail but gave it up due to my disabled son and his needs)

Thanks in advance, I'm so depressed I don't know what to do. I don't want to affect the company in anyway, I just don't know where to turn

heidiprincess13 · 16 September 2017 at 10:42AM

I'm just unsure what they take into account for earnings etc. I receive carers allowance and tax credits.

Any help or info is very much appreciated.

National_Debtline · 16 September 2017 at 11:04AM

Hi there,

When you apply for a DRO you will initially be assess using a SOA. In order to qualify you need to have less than £50 per month for your debts, less than £20k of debt in total, and assets worth less than £1k (plus you are allowed a car worth up to £1k). They will consider most incomes, such as carers allowance and tax credits but a child's DLA should be disregarded.

When you enter into a DRO you will have some restrictions placed on you during your 12 month moratorium. One of those restrictions is that you are unable to be the director of a limited company, so you would need to resign this position. Your husband would then need further advice about the implications this may have on his business.

We have a factsheet about DRO's that may help you - https://www.nationaldebtline.org/EW/factsheets/Pages/debtrelieforders/droadvice.aspx

Laura
@natdebtline

heidiprincess13 · 16 September 2017 at 1:07PM

Thank you for the reply, what type of implications would this cause the company? I'm just not sure what to do for the best. I don't do anything for the company, I am just down as I director.

When you apply for a DRO you will initially be assess using a SOA. In order to qualify you need to have less than £50 per month for your debts, less than £20k of debt in total, and assets worth less than £1k (plus you are allowed a car worth up to £1k). They will consider most incomes, such as carers allowance and tax credits but a child's DLA should be disregarded.

When you enter into a DRO you will have some restrictions placed on you during your 12 month moratorium. One of those restrictions is that you are unable to be the director of a limited company, so you would need to resign this position. Your husband would then need further advice about the implications this may have on his business.

We have a factsheet about DRO's that may help you - https://www.nationaldebtline.org/EW/factsheets/Pages/debtrelieforders/droadvice.aspx

Laura
@natdebtline[/QUOTE]

sourcrates · 16 September 2017 at 1:17PM

You simply resign, thats it, you cant be the director of a LTD company if your in a DRO, or any other insolvency solution, it wont have any other impact on anything, so just resign.

The £50 limit on money left at months end is the most important thing you need to worry about, your budget must show a balance of less than £50 left over after all bills are paid, not including credit payments.

If it dosent, your DRO wont be accepted.

heidiprincess13 · 16 September 2017 at 1:28PM

Could I pm you later for some advice? If that's ok? This is making me so ill with worry and stress.

sourcrates · 16 September 2017 at 1:33PM

heidiprincess13 wrote: »

Could I pm you later for some advice? If that's ok? This is making me so ill with worry and stress.

Me ? yes of course.

It really is pretty straightforward.

heidiprincess13 · 16 September 2017 at 2:32PM

I will do later sourceates. I'm just so sick with worry. Thank you so much

System · 17 September 2017 at 10:57AM

Have you checked you are getting all the benefits you are entitled to? You should be able to get carers allowance which whilst not a lot is £200 odd a week. Also contact HMRC tax credits. Notify them of a change of income if you're claiming and make sure you're getting the disability component of child tax credit, that's another £2500 a year or so. If you weren't claiming put a claim in. Even though you may have been excluded before for WTC/CTC, the disability component may mean that any reduction because of income still leaves you entitled to something.

Debt relief order

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