Debt Relief Orders (DRO) - Information & help thread

wba31

alanwake wrote: »

I have a few questions if someone in the know could please answer them?:

Is working families tax credits and child tax credits taken in to account in what they would call disposable income?

Is the disposable income accounted for after they work out your debts? (If that makes sense)

How do they value your car, or are you expected to provide some kind of independant evaluation?


Thanks

Tax credits are included in calculating your budget for the purpose of the DRO.
Your disposable income is based only on your budget, the payments on your debts do not count in the budget because if you can afford to pay the debts, you do not need the DRO...
The car valuation is done via www.parkers.co.uk If your car is older than 10 years old you wont be able to get a valuation (and chances are unless it is something a bit nice it'll be worth less than £1000 anyway)

alanwake

wba31 wrote: »

Tax credits are included in calculating your budget for the purpose of the DRO.
Your disposable income is based only on your budget, the payments on your debts do not count in the budget because if you can afford to pay the debts, you do not need the DRO...
The car valuation is done via www.parkers.co.uk If your car is older than 10 years old you wont be able to get a valuation (and chances are unless it is something a bit nice it'll be worth less than £1000 anyway)

Thanks for the response, in my case I'm not sure how it would work unless there is such a thing as debt relief for couples? Because tax credits are a joint claim, unless we can lump our debts together too.

immoral_angeluk

misty2730 wrote: »

i paid my fee for dro and im now on the Individual Insolvency Register, does that mean i have been acsepted?

Does indeed, the register will give the date your application was approved.

immoral_angeluk

alanwake wrote: »

Thanks for the response, in my case I'm not sure how it would work unless there is such a thing as debt relief for couples? Because tax credits are a joint claim, unless we can lump our debts together too.

Debt relief orders are individual, but in your circumstance you would put your household income combined for the financial statement, but only your sole debts would be included in your DRO.

3Dogs

3Dogs wrote: »

Hi guys, my DRO was granted on 13th January 2011 and I just got a free trial credit report to see what it showed for it, but find that, in courts section, it shows 'Bankruptcy' - is this normal?

Many thanks

Equifax by the way

Any comments please guys?

immoral_angeluk

3Dogs wrote: »

Any comments please guys?

Not something I've heard of really, but it's worth contacting experian/equifax who'll be able to advise further...

3Dogs

immoral_angeluk wrote: »

Not something I've heard of really, but it's worth contacting experian/equifax who'll be able to advise further...

Many thanks angeluk, will contact them tomorrow

beancounter1978

We have been in a self-organised DMP for 2 years and are now looking at bankruptcy options as recent cuts in overtime with my employers have reduced our income - if we continue with the reduced payments we are looking at up to 15 years to pay off the balance.

We have recently paid off the only credit that was in joint names (a personal loan) and so now my husband has just over £3.5k of debt in his own name, and I have just over £16.5k in mine (not including student loans). I am looking at bankruptcy and he is looking at a debt relief order, and we have an appointment with the CAB at the end of the month to discuss it.

My query is, since he is a stay-at-home-father (we have a 2.5 yr old) he does not have any income at all (other than what he manages to make selling off unwanted video games, DVDs etc), will he be eligible for a DRO? I cover all the bills etc so it's not as if he has an income deficit, which I understand would make someone ineligible for bankruptcy.

Also, with regard to assets, the car is in my name so shouldn't be an issue for him, but he does own a few ornamental weapons which, although technically worth something (we're not sure what), are really valueless because he's not legally registered to sell them. Does anyone have any idea how they would be regarded? Also, what's the position on household electronics (DVD player, games console, MP3 player etc - not recent purchases I might add, except for one which was a Christmas present from family members)? Are they classed as "assets"?

Any help on this would be gratefully appreciated. If we have to do this, then we have to, but we need to go in with our eyes open.

immoral_angeluk

beancounter1978 wrote: »

We have been in a self-organised DMP for 2 years and are now looking at bankruptcy options as recent cuts in overtime with my employers have reduced our income - if we continue with the reduced payments we are looking at up to 15 years to pay off the balance.

We have recently paid off the only credit that was in joint names (a personal loan) and so now my husband has just over £3.5k of debt in his own name, and I have just over £16.5k in mine (not including student loans). I am looking at bankruptcy and he is looking at a debt relief order, and we have an appointment with the CAB at the end of the month to discuss it.

My query is, since he is a stay-at-home-father (we have a 2.5 yr old) he does not have any income at all (other than what he manages to make selling off unwanted video games, DVDs etc), will he be eligible for a DRO? I cover all the bills etc so it's not as if he has an income deficit, which I understand would make someone ineligible for bankruptcy.

Also, with regard to assets, the car is in my name so shouldn't be an issue for him, but he does own a few ornamental weapons which, although technically worth something (we're not sure what), are really valueless because he's not legally registered to sell them. Does anyone have any idea how they would be regarded? Also, what's the position on household electronics (DVD player, games console, MP3 player etc - not recent purchases I might add, except for one which was a Christmas present from family members)? Are they classed as "assets"?

Any help on this would be gratefully appreciated. If we have to do this, then we have to, but we need to go in with our eyes open.

In your case it would be easiest to include your whole household's income and expenditure for both of you.
As for the assets, you have to declare assets of realisable value, ie items that would sell for a high value. If he wouldn't even be ALLOWED legally to sell them then I'd say their realisable value is nil. Household items likes furniture tvs etc are counted unless particularly extravagant (ie 60 inch 3D plasma tvs worth 6k etc...)

I hope that helps!

MadManCalpol

I have about 8k worth of debt, don't recieve any benefits and certainly do not have £50 spare at the the end of the month.

How long do DRO normally take to setup ? and would it include my debt with wonga.com ?