Debt Relief Orders (DRO) - Information & help thread

hylandz

Been looking at this DRO.

I have debts of £11k, problem is I have a joint mortgage (with neg equity), would I not be okay to sign over my half of the property and apply for a DRO?

elfieb

hylandz wrote: »

Been looking at this DRO.

I have debts of £11k, problem is I have a joint mortgage (with neg equity), would I not be okay to sign over my half of the property and apply for a DRO?

Not a good idea....the OR would find out, and your DRO (if submitted) would be revoked, £90 lost and all debts back.

hylandz

elfieb wrote: »

Not a good idea....the OR would find out, and your DRO (if submitted) would be revoked, £90 lost and all debts back.

Even though I have separated from ex and no longer live there? I only have the property In my name still for my child's sake.

beentheredonethatstilhere

Unfortunatly it is an asset even in negative equity and if you sign it over you will be seen as getting rid of an asset at under value and then things go pear shaped.

Orville

This is my SOA... It leaves me with about £30 a month..

Household Information[/b]
Number of adults in household........... 1
Number of children in household......... 1
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 0
Partners monthly income after tax....... 0
Benefits................................ 1074
Other income............................ 0
Total monthly income.................... 1074
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 450
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 50
Gas..................................... 0
Oil..................................... 0
Water rates............................. 30
Telephone (land line)................... 27
Mobile phone............................ 20
TV Licence.............................. 12
Satellite/Cable TV...................... 21
Internet Services....................... 0
Groceries etc. ......................... 135
Clothing................................ 15
Petrol/diesel........................... 75
Road tax................................ 15
Car Insurance........................... 20
Car maintenance (including MOT)......... 50
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 3
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 908

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 300
Other assets............................ 0
Total Assets............................ 300

No Secured nor Hire Purchase Debts
Unsecured Debts
Description....................Debt......Monthly...APR
barclaycard ...................3500......30........0
thomascook ....................2000......50........0
mint...........................1000......20........0
Cabolt.........................1000......5.........0
halifax........................2500......31........0
Total unsecured debts..........10000.....136.......-

Monthly Budget Summary
Total monthly income.................... 1,074
Expenses (including HP & secured debts). 908
Available for debt repayments........... 166
Monthly UNsecured debt repayments....... 136
Amount left after debt repayments....... 30

Personal Balance Sheet Summary
Total assets (things you own)........... 300
Total HP & Secured debt................. -0
Total Unsecured debt.................... -10,000
Net Assets.............................. -9,700


This should be good enough for a DRO shouldn't it...?

tigerfeet2006

Orville, I make it more than £30. Perhaps you ought to recheck your figures as I make it £166 you have left.

Number of adults in household........... 1
Number of children in household......... 1
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 0
Partners monthly income after tax....... 0
Benefits................................ 1074
Other income............................ 0
Total monthly income.................... 1074
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 450
Management charge (leasehold property).. 0
Council tax............................. 0 NOTHING HERE??
Electricity............................. 50
Gas..................................... 0 NO GAS??
Oil..................................... 0
Water rates............................. 30
Telephone (land line)................... 27
Mobile phone............................ 20
TV Licence.............................. 12
Satellite/Cable TV...................... 21
Internet Services....................... 0 NO INTERNET??
Groceries etc. ......................... 135 £200
Clothing................................ 15 £40
Petrol/diesel........................... 75
Road tax................................ 15
Car Insurance........................... 5 IS IT REALLY THIS LOW??
Car maintenance (including MOT)......... 50 THIS IS QUITE HIGH £40
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0 £20
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0 NO CONTENTS??
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 3 £10
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 908


Have a play with your figures.

fatbelly

Orville wrote: »

This should be good enough for a DRO shouldn't it...?

Not until you get the surplus below £50. Take note of tigerfeet's comments and have a chat with your Intermediary

Orville

tigerfeet2006 wrote: »

Orville, I make it more than £30. Perhaps you ought to recheck your figures as I make it £166 you have left.

Number of adults in household........... 1
Number of children in household......... 1
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 0
Partners monthly income after tax....... 0
Benefits................................ 1074
Other income............................ 0
Total monthly income.................... 1074
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 450
Management charge (leasehold property).. 0
Council tax............................. 0 NOTHING HERE?? Hmmm well it's paid for by the council. For some reason i put the rent in which is also paid by the council.
Electricity............................. 50
Gas..................................... 0 NO GAS?? Nope all electric
Oil..................................... 0
Water rates............................. 30
Telephone (land line)................... 27
Mobile phone............................ 20
TV Licence.............................. 12
Satellite/Cable TV...................... 21
Internet Services....................... 0 NO INTERNET?? That is bundled in with the Phone. I am with Talk Talk
Groceries etc. ......................... 135 £200 Well when i was with my ex, she spent about about £75 a week for five of us. Now it is just myself and one of the kids. Which by my reckoning should be just under half of that...?
Clothing................................ 15 £40 There is no way i spend £40 a month on clothes..
Petrol/diesel........................... 75
Road tax................................ 15
Car Insurance........................... 5 IS IT REALLY THIS LOW?? No that is a weekly amout, my mistake. Should have put the monthly in of £20
Car maintenance (including MOT)......... 50 THIS IS QUITE HIGH £40. My last MOT was £50. Factor in say £10 a month twoards servicing etc..?
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0 £20, ? i get free perscriptions
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0 NO CONTENTS?? It's a rented flat paid by the council.
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 3 £10 £10 a month for haircuts..? I don't spend that, i get my haircut every other month at £6 ish a time.
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 908


Have a play with your figures.

Tiger and Fat... I thought it was £30.... It says Amount left after debt repayments....... 30

Isn't that the total amount left over per month..?

I have amended the car insurance which by my counting puts me under the £50 still.

tigerfeet2006

£1074-908= 166 in my book. You don't want the amount left after debt repayments. Your SoA needs to be the one you will live by after your DRO has been issued and you have no debts not what you are living on before the DRO.


The figures I have given are what the government deem you should have to live on. Just because you don't spend it doesn't mean you can't put it down. Don't forget you will have no access to credit so will need a bit of a buffer. You have been living inb a seige mentallity for so long that you can forget what is reasonable. Actually tell a lie, groceries is about £186, I think, but in BR it tends to be accepted so no reason for it not to be in a DRO.

And I have just picked up it is you and a child (apologies I missed that last night) so the Groceries should be £250. Clothing can be up to £70. You should get contents insurance with accidental damage for your goods. I live in a HA house and I still have contents insurance on my goods. Came in very handy when the freezer broke down and ruined all my food and I couldn't afford £200 to restock it.

Do another SoA and put it up again with out the debts.

Orville

tigerfeet2006 wrote: »

£1074-908= 166 in my book. You don't want the amount left after debt repayments. Your SoA needs to be the one you will live by after your DRO has been issued and you have no debts not what you are living on before the DRO.


The figures I have given are what the government deem you should have to live on. Just because you don't spend it doesn't mean you can't put it down. Don't forget you will have no access to credit so will need a bit of a buffer. You have been living inb a seige mentallity for so long that you can forget what is reasonable. Actually tell a lie, groceries is about £186, I think, but in BR it tends to be accepted so no reason for it not to be in a DRO.

And I have just picked up it is you and a child (apologies I missed that last night) so the Groceries should be £250. Clothing can be up to £70. You should get contents insurance with accidental damage for your goods. I live in a HA house and I still have contents insurance on my goods. Came in very handy when the freezer broke down and ruined all my food and I couldn't afford £200 to restock it.

Do another SoA and put it up again with out the debts.

Oh rite my apologies.. i'll do another SoA a bit later without the debts.... I thought it was with debts that left you under £50 a month...