Debt Relief Orders (DRO) - Information & help thread

cd36uk

PandaPaws wrote: »

I have an appointment next week with my local CAB to go thru the DRO forms. I'm glad to get an appointment so quickly after reading about long waiting times for others, but am also a bit worried as the person I arranged to meet wasn't very friendly and didn't seem to know as much as I do about the eligibility criteria etc.. (I'm not criticising CAB, I've seen from the waiting room alone how busy they are).. I'd still rather sit down with someone face to face, rather than call one of the other intermediaries, but am so stressed about it.. and about getting all the paperwork together, and about being judged for getting in to such a bad state to start with... etc, etc.... *deep breath*...

With hindsight I would've rather sat face to face with someone too, but the CAB in my area are very sporadic and therefore I went for the phone intermediary option. It has beena very long process (2 & half months) and it seems people who go the CAB route wait alot less.
The process is very stressful, unfortunately that is the nature of the beast, but at least if you use the CAB it will a shorter duration of stress! Good luck with your application, and I'm sure your advisor will not be judgemental (it is not professional for them to be) and will help you through this difficult time.

3Dogs

Hello - I have read through this thread - started in March, left off and caught up to date today

I am planning o applying for a DRO but have just one query - how do I account for housing benefit when assessing my finances? Do I include it as income and enter the full rent due as expenditure? Or do I just show our rent after HB applied? the same with council tax?

When I have this information, I will post my SOA on here, if I may, for confirmation that it is OK for a DRO application

Many thanks in advance for your valuable advice

fatbelly

3Dogs wrote: »

I am planning o applying for a DRO but have just one query - how do I account for housing benefit when assessing my finances? Do I include it as income and enter the full rent due as expenditure? Or do I just show our rent after HB applied? the same with council tax?

To be honest, I think you could do it either way. I always do 'net rent' and 'net council tax'. For me it looks less cluttered. If it's 'wrong', no-one's ever picked me up on it, though I'm aware others use the other method.

3Dogs

Many thanks for quick reply - I will post my SOA later today

debt_doctor

Hi all,

The figures re hairdressing, housekeeping and other types of expenditure apply to bankruptcy and NOT DRO's.

DRO expenses are calculated using the trigger figures of the common financial statement, which are based on your family size, whether you have a vehicle and how old your children are. I agree that it is your clothing budget that is giving your intermediary a headache !

Travel is very low though - could stick another £65 pm on that, even without owning a car.

DD

immoral_angeluk

fatbelly wrote: »

To be honest, I think you could do it either way. I always do 'net rent' and 'net council tax'. For me it looks less cluttered. If it's 'wrong', no-one's ever picked me up on it, though I'm aware others use the other method.

I find it easier to put the actual amount paid by the client, and then a note in the expenditure about the amount being after HB/CTB.

3Dogs

Right, I think I am ready to apply for a DRO, if I have got the details right, so am posting my SOA for comments please. I am thinking of DRO for me only, as hubbie has a pension pot so can't apply

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household......... 0
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 533 Ill-Health Retirement Pension
Partners monthly income after tax....... 0
Benefits................................ 710 Incapacity Benefit for both of us
Other income............................ 0
Total monthly income.................... 1243
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 256 after Housing Benefit applied
Management charge (leasehold property).. 0
Council tax............................. 99 after Council Tax benefit applied
Electricity............................. 30
Gas..................................... 0
Oil..................................... 38
Water rates............................. 25
Telephone (land line)................... 13
Mobile phone............................ 30 2 x £15 on contract
TV Licence.............................. 12
Satellite/Cable TV...................... 21
Internet Services....................... 14
Groceries etc. ......................... 310
Clothing................................ 30
Petrol/diesel........................... 108
Road tax................................ 18
Car Insurance........................... 42
Car maintenance (including MOT)......... 20
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 20
Pet insurance/vet bills................. 21
Buildings insurance..................... 0
Contents insurance...................... 4
Life assurance ......................... 24
Other insurance......................... 0
Presents (birthday, christmas etc)...... 20
Haircuts................................ 10
Entertainment........................... 20
Holiday................................. 0
Emergency fund.......................... 20
Total monthly expenses.................. 1205

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
Abbey Overdraft................1155......1.........0 Mine
Abbey Overdraft................1665......1.........0 Joint
Capital One CC.................1102......1.........0 Mine
Clydesdale Finance.............1320......1.........0 Mine
Empire Stores catalog..........465.......1.........0 Mine
Jacamo catalogue...............562.......1.........0 Husband
Shoe Tailor catalogue..........2375......1.........0 Mine
Black Horse Finance............2090......1.........0 Husband
Capital One CC.................644.......1.........0 Husband
Total unsecured debts..........11378.....9.........-

Monthly Budget Summary
Total monthly income.................... 1,243
Expenses (including HP & secured debts). 1,205
Available for debt repayments........... 38
Monthly UNsecured debt repayments....... 9
Amount left after debt repayments....... 29
Personal Balance Sheet Summary
Total assets (things you own)........... 300
Total HP & Secured debt................. -0
Total Unsecured debt.................... -11,378
Net Assets.............................. -11,078
Created using the SOA calculator at www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission, using IE browser.

Forgot to say, we are currently paying £1 token payments s advised by CCCS

Orville

Hi.

I have received the paperwork from CCCS. Looking at the application form to send to Experian for my credit report it does not ask me for a £2 payment..?. Am i wrong in thinking you have to send £2 off with it for the admin fees or has this now changed.

fatbelly

Orville wrote: »

Hi.

I have received the paperwork from CCCS. Looking at the application form to send to Experian for my credit report it does not ask me for a £2 payment..?. Am i wrong in thinking you have to send £2 off with it for the admin fees or has this now changed.

Intermediaries can get a free report from Experian. Are they asking you to return it to CCCS?

SimIsOnTheUp

Orville wrote: »

Hi.

I have received the paperwork from CCCS. Looking at the application form to send to Experian for my credit report it does not ask me for a £2 payment..?. Am i wrong in thinking you have to send £2 off with it for the admin fees or has this now changed.

Hiya Orville

Good question, and one I'd like answering too please!

Fatbelly - I had my pack from CCCS (re DRO) recently, and CCCS asked for me to contact Experian, and ask them for my credit file.

CCCS had enclosed a form for Experian (with 'free credit report' printed across it I think).

I sent it off to Experian for my credit file, without any fee, but as Orville says - I'm unsure as to whether or not £2 is due to Experian or not.

Am worried now that Experian won't send me my file.

Any ideas?

Cheers,

Sim.