Debt Relief Orders (DRO) - Information & help thread

mcajshaw

had planned to go to Bedford court on Wednesday morning to present my own voluntary bankrupty to the courts. I had read about a "Debt Relief Order" previously, as my debts are just under £15,000.

But I had passed over the idea because it said if you had more than £50 left over a month then you would not be able to submit an application. However, with all my payday loans etc I sort of live of credit (at least at this time) so I probably dont have more than £50 spare a month. When they talk of £50 spare a month, is this after you take out a DRO or before you take out a DRO.

I get paid approximately £1200 a month and if my debts were frozen I would have about £600 disposable income a month, which is obviously way over £50. The thing is though, is the £50 ceiling about how your finances are at THIS MOMENT in time, or when you would have the DRO.

In short is the Debt Relief Order aimed at people who are not employed etc, or can I still pursue it even though I earn £1200 a month and now live back at home with my Mum and Dad? Most of my debt has been accrued by gambling too so not sure if (DRO) is accepted on these terms?

Jonathan

fatbelly

mcajshaw wrote: »

I would have about £600 disposable income a month, which is obviously way over £50.

Then you wouldn't qualify for a DRO.

You also stand to get a sizeable IPO in bankruptcy and the gambling thing worries me a bit. Have you actually taken advice on your proposed course of action? Who from?

mcajshaw

Hi Fatbelly,

Thanks for the reply. When I said I would have £600 of disposable income, I meant this if my debts were frozen in a Debt Relief Order. As it stands now I need payday loans to live from one month to the next if that makes sense?

Is it about whether you have £50 spare before or after your Debt Relief Order is passed?

As for the gambling, I am attending the National Problem Gambling Clinic in London now. Because of my payday loans and other debts I can no longer afford to live.

SouthCoast

mcajshaw wrote: »

Hi Fatbelly,

Thanks for the reply. When I said I would have £600 of disposable income, I meant this if my debts were frozen in a Debt Relief Order. As it stands now I need payday loans to live from one month to the next if that makes sense?

Is it about whether you have £50 spare before or after your Debt Relief Order is passed?

As for the gambling, I am attending the National Problem Gambling Clinic in London now. Because of my payday loans and other debts I can no longer afford to live.

Your disposable income after deducting all normal living expenses, must not be more than £50 per month.

http://www.insolvency.gov.uk/bankruptcy/DRO/debtors.htm

immoral_angeluk

mcajshaw wrote: »

Hi Fatbelly,

Thanks for the reply. When I said I would have £600 of disposable income, I meant this if my debts were frozen in a Debt Relief Order. As it stands now I need payday loans to live from one month to the next if that makes sense?

Is it about whether you have £50 spare before or after your Debt Relief Order is passed?

As for the gambling, I am attending the National Problem Gambling Clinic in London now. Because of my payday loans and other debts I can no longer afford to live.

Be aware that a history of Gambling will almost certainly land you with a debt relief restrictions order. Have you sought advice about the suitability of a DRO for you?

fatbelly

immoral_angeluk wrote: »

Be aware that a history of Gambling will almost certainly land you with a debt relief restrictions order. Have you sought advice about the suitability of a DRO for you?

mcajshaw doesn't qualify for a DRO, so is going for bankruptcy, and so a bit off-topic for this thread. With the likelihood of a BRO, and an IPO that will pay off most of the debt anyway, I'd love to know who gave the advice to go for bankruptcy!

immoral_angeluk

fatbelly wrote: »

mcajshaw doesn't qualify for a DRO, so is going for bankruptcy, and so a bit off-topic for this thread. With the likelihood of a BRO, and an IPO that will pay off most of the debt anyway, I'd love to know who gave the advice to go for bankruptcy!

Ah I see, apologies as I'm dipping in and out of this thread!
Bankruptcy would be an option, so long as the OP is made aware of the implications of a BRO and is happy with those then fair enough, but if he can afford to pay off the debt within an IPA then it's unlikely they would let a bankruptcy go through anyway I'd imagine and would probably find a FTIVA more suitable?.... Obviously I'm not an OR so don't quote me on that :rotfl:

fieryleo1984

morning everyone, im still panicking about being refused a DRO! I keep thinking that they are going to look at my statements at all the reckless spending and say tough you got only yourself to blame!
I keep thinking the inheritance will be one of the reasons why I wont be allowed as I used it to live off even when on a DMP as well as paying for full and final settlements. I have used some of the money to pay my DMP for the last 9 months while on Maternity leave, stuff for my baby and moving house...

I wish i hadnt been so silly.:eek:
Em x

Smart_Mart

RobertoMoir wrote: »

If you had signed the WPO then you would already have a copy.

It isn't splitting hairs. He hadn't gained "peaceful entry" to the house at the time, he therefore cannot levy on goods inside the house. To legally levy upon goods you have to be able to remove them at the time you levy. A levy is a seizure of items, and if you remember that it's simple enough: You can't seize something you can't, er, physically seize.

To levy upon goods that are inside your house, he has to have already gained peaceful entry to the house. From what you say, this has not happened. Therefore the levy is illegal, therefore you should complain.

Hi Roberto, just thought I'd update with the latest.

I sent a letter to the bailiffs regarding this matter....

Dear Sir / Madam,

I am writing with reference to the recent correspondence sent to me regarding a debt I currently owe to you for ******* Council.

Please can you send me a copy of the levy on the goods and also a copy of the “walking possession order” that you must have got in order to levy on my goods? Apparently you (as bailiffs) cannot levy on my goods without the ability to actually seize them physically. This is called “constructive seizure” and is frowned upon by the authorities.

Please find enclosed a stamped addressed envelope – the copies of the levy and the walking possession order should be placed in here and sent back as soon as possible.

Yours faithfully

Smart Mart

I sent that letter on May 17th and got this reply back today..

Dear Smart Mart

Thank you for your correspondence which we received on May 26th 2010. I have now had the opportunity to review this matter and can respond as follows.

Please find enclosed,as requested, a copy of the levy conducted by our bailiff.

I would advise that no walking possession order is required for a levy to be conducted legally and therefore no signature or even agreement from yourself is required. The levy is a legal notice of seizure of goods listed which the bailiff can then legally remove to be sold at auction. It is at the bailiff's discretion whether the goods are removed immediately or whether he permits them to remain in situ whilst allowing a set period of time for payment to be made to discharge the outstanding debt including fees.

Therefore I can confirm that the bailiff has acted correctly and legally in this instance and therefore the levy stands.

I trust that I have addressed your concerns however should you require any further assistance please do not hesitate to contact me directly at the address shown below.

So there you have it. Also included was a copy of the NOTICE OF SEIZURE OF GOODS AND INVENTORY which details "1 x Patric golf clubs and golf bag".

At the time, the debt was £257.50 but I have paid two thirds of that since the levy (17th November 2009). I still owe £85 on the debt.

RobertoMoir

Well if the bailiff hasn't been inside the house they can't legally have seized goods that were inside the house just by viewing them through a door or window (open or shut). End of discussion, no matter what they say. Proving who did what if it turns into a "he said, she said" kinda thing is another matter of course.

I think there's an exception to this rule, but it doesn't apply here so I won't confuse matters by discussing it.

If you're paying the debt anyway then it's up to you if it's worth making an issue out of - they've almost certainly charged you illegal fees based on this, at the very least the levy fee if not some extra stuff too. If you choose to complain, I'd start with the council, and make it clear that you're not asking them "is it true that this is wrong" but rather that you *know* it is wrong, and are complaining to them about the illegal actions of their agents, whose behaviour you are holding the council responsible for. If that gets you nowhere with the council tax recovery department itself, then go via your local councillor.