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  • FIRST POST
    • heidiprincess13
    • By heidiprincess13 16th Sep 17, 9:53 AM
    • 110Posts
    • 8Thanks
    heidiprincess13
    Debt relief order
    • #1
    • 16th Sep 17, 9:53 AM
    Debt relief order 16th Sep 17 at 9:53 AM
    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
Page 1
    • heidiprincess13
    • By heidiprincess13 16th Sep 17, 10:42 AM
    • 110 Posts
    • 8 Thanks
    heidiprincess13
    • #2
    • 16th Sep 17, 10:42 AM
    • #2
    • 16th Sep 17, 10:42 AM
    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
    • #3
    • 16th Sep 17, 11:04 AM
    • #3
    • 16th Sep 17, 11:04 AM
    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
    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
    • heidiprincess13
    • By heidiprincess13 16th Sep 17, 1:07 PM
    • 110 Posts
    • 8 Thanks
    heidiprincess13
    • #4
    • 16th Sep 17, 1:07 PM
    • #4
    • 16th Sep 17, 1:07 PM
    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
    • By sourcrates 16th Sep 17, 1:17 PM
    • 12,477 Posts
    • 11,868 Thanks
    sourcrates
    • #5
    • 16th Sep 17, 1:17 PM
    • #5
    • 16th Sep 17, 1:17 PM
    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.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
    Bankruptcy And Living With It, boards. "I volunteer to help get your forum questions answered and keep the forum running smoothly".
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.

    For free debt advice, contact either : Stepchange, National Debtline, or, CAB.
    For Legal advice see : http://legalbeagles.info/
    • heidiprincess13
    • By heidiprincess13 16th Sep 17, 1:28 PM
    • 110 Posts
    • 8 Thanks
    heidiprincess13
    • #6
    • 16th Sep 17, 1:28 PM
    • #6
    • 16th Sep 17, 1:28 PM
    Could I pm you later for some advice? If that's ok? This is making me so ill with worry and stress.
    • sourcrates
    • By sourcrates 16th Sep 17, 1:33 PM
    • 12,477 Posts
    • 11,868 Thanks
    sourcrates
    • #7
    • 16th Sep 17, 1:33 PM
    • #7
    • 16th Sep 17, 1:33 PM
    Could I pm you later for some advice? If that's ok? This is making me so ill with worry and stress.
    Originally posted by heidiprincess13
    Me ? yes of course.

    It really is pretty straightforward.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
    Bankruptcy And Living With It, boards. "I volunteer to help get your forum questions answered and keep the forum running smoothly".
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.

    For free debt advice, contact either : Stepchange, National Debtline, or, CAB.
    For Legal advice see : http://legalbeagles.info/
    • heidiprincess13
    • By heidiprincess13 16th Sep 17, 2:32 PM
    • 110 Posts
    • 8 Thanks
    heidiprincess13
    • #8
    • 16th Sep 17, 2:32 PM
    • #8
    • 16th Sep 17, 2:32 PM
    I will do later sourceates. I'm just so sick with worry. Thank you so much
    • Tarambor
    • By Tarambor 17th Sep 17, 10:57 AM
    • 1,612 Posts
    • 1,107 Thanks
    Tarambor
    • #9
    • 17th Sep 17, 10:57 AM
    • #9
    • 17th Sep 17, 10:57 AM
    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.
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