Debt Relief Orders (DRO) - Information & help thread

immoral_angeluk

sunwind wrote: »

Hi all - this is my first post, but wanted to say thank you for all the great advice I've read on this thread so far.

After reading this thread I think I'm reasonably well informed about DRO's now. I was disallowed on pension grounds before, but thankfully that will change come April.

This has not been confirmed yet. Don't rely on the belief it will automatically change come april 1st...

I still have a couple of questions so I'll start with one of them.

I've valued my car at the Parkers site using the free valuation tool. and its worth is £1465.

However, with mileage adjustment its value drops down to £795.

From what I've read intermediary's only use the free valuation tool, but if that's the case I still wouldn't qualify, even though my car is well under the limit...!

Does anyone know if intermediaries can take mileage into account - if they can't it seems a bit daft to me:(

Any insights on this please...?

If the value has been adjusted because of the mileage, so long as that is accurate and you can back it up (IE print off the results to show your intermediary) then it shouldn't be a problem.

sunwind

Thanks for that immoral_angeluk:).

I must say that I've found your posts on this long thread particularly clear and informative :T

My second question arises due to the fact that while my debts were under 15K when DROs were announced, with interest and defaults they have now climbed to just over 17K, so now I am currently ineligible again.
A bit of good old Sods Law coming into play there.

I really don't want to go the bankruptcy route, and a family member is willing to loan me the required figure to make non preferential pro rata payments to my three creditors to bring my 17K down to just under 15K.

This seems straightforward to me, but I wondered if it might be considered 'rigging the game', so to speak, to avoid bankruptcy and enable DRO.

Any comments would be appreciated. Thanks.

immoral_angeluk

sunwind wrote: »

Thanks for that immoral_angeluk:).

I must say that I've found your posts on this long thread particularly clear and informative :T

My second question arises due to the fact that while my debts were under 15K when DROs were announced, with interest and defaults they have now climbed to just over 17K, so now I am currently ineligible again.
A bit of good old Sods Law coming into play there.

I really don't want to go the bankruptcy route, and a family member is willing to loan me the required figure to make non preferential pro rata payments to my three creditors to bring my 17K down to just under 15K.

This seems straightforward to me, but I wondered if it might be considered 'rigging the game', so to speak, to avoid bankruptcy and enable DRO.

Any comments would be appreciated. Thanks.

Awww thanks. Makes a change, I'm normally rambling as hell :rotfl:

As for getting your debts under 15k, so long as you pay them all pro rata and don't preference any then it's fine.
The issue you will find is if it is a loan, as then you would have to declare it as it would be a qualifying debt for the purposes a DRO so you'd be no better off. However if it was a gift, or the third party paid the debts with no agreement for you to repay it then that would be fine.

sunwind

Thanks for that immoral_angeluk:).
And I really don't find you rambling at all - you always seem to get straight to the nub of the matter.

Your advice on gifts versus loans are duly noted, and something will be sorted out.

Well, as we are really getting somewhere today I'll post my final two questions...

1) I'm in part time poorly paid employment, and my position is on a committee, which officially makes me a 'public office holder'.

Will this disbar me from a DRO, or cause any problems for me...?

2) Finally (for the present) I also receive partial HB, and to stop it being reduced any further I currently pay £80 a month into my pension, and whether I did or I didn't my disposable income would still be less than £50 a month.

I know this is a difficult one, do we know how pensions payments might be viewed when/if the rules change on April 2011. For example, might they come in line with Bankruptcy rules.
I know no-one has a crystal ball but I'd be quite happy to hear some positive prognostications...

Thanks,

sicko666

Lol, yep its me again ( this time i will not tempt fate by saying i will not post again lol!!! ).
Question:
While applying for the DRO i paid only £1 to each creditor a month.Now i have been awarded the DRO do i still have to keep paying the £1 a month to the creditors?
I did ask this question of the solicitor at the time but for the life of me i cant remember what he said, and now i recieved a letter telling me that because the DRO was awarded the solicitor has closed the case i dont really want to end up being charged for their time to answer a question i should have remembered, dam my epilepsy and my terrible memory!
Ps i am with sunwind immoral_angeluk lol you never ramble,lol, I ramble lol!!!!!!!!

immoral_angeluk

sicko666 wrote: »

Lol, yep its me again ( this time i will not tempt fate by saying i will not post again lol!!! ).
Question:
While applying for the DRO i paid only £1 to each creditor a month.Now i have been awarded the DRO do i still have to keep paying the £1 a month to the creditors?
I did ask this question of the solicitor at the time but for the life of me i cant remember what he said, and now i recieved a letter telling me that because the DRO was awarded the solicitor has closed the case i dont really want to end up being charged for their time to answer a question i should have remembered, dam my epilepsy and my terrible memory!
Ps i am with sunwind immoral_angeluk lol you never ramble,lol, I ramble lol!!!!!!!!

No, you're not allowed to make payments to any creditor included in the DRO now, so you need to cancel those payments.
If you were seen under legal aid and they have closed your case they won't be able to open a new case fr 6 months, but for one off advice you may as well ask one of us, or contact the DRO unit directly.
and thanks! lol

Orville

Hi.

I need some advice this time.

I am looking at going into starting up my own on-line website. I have a certain amount of money from the sale of my camera equipment. The job centre have said they can give me a £250 back to work payment and i can also claim a back to work grant where i sign off but also receive a £40 a week payment for a year. I can also claim working tax credits to help with this.

My question is as i will be getting this money from the goverment to help me get back to work, can this affect my DRO..?.

I should point out that for at least the first six to twelve months i do not plan to make any money while i am establishing it.

immoral_angeluk

Orville wrote: »

Hi.

I need some advice this time.

I am looking at going into starting up my own on-line website. I have a certain amount of money from the sale of my camera equipment. The job centre have said they can give me a £250 back to work payment and i can also claim a back to work grant where i sign off but also receive a £40 a week payment for a year. I can also claim working tax credits to help with this.

My question is as i will be getting this money from the goverment to help me get back to work, can this affect my DRO..?.

I should point out that for at least the first six to twelve months i do not plan to make any money while i am establishing it.

You'd need to work out a new income/expenditureas both the DWP and HMRC money would be taken as income, taking in to account all of the new circumstances including expenses, costs etc to make sure you're still under the £50pm limit. I'm presuming you'd just be a sole trader and not a ltd company or anything?

Orville

immoral_angeluk wrote: »

You'd need to work out a new income/expenditureas both the DWP and HMRC money would be taken as income, taking in to account all of the new circumstances including expenses, costs etc to make sure you're still under the £50pm limit. I'm presuming you'd just be a sole trader and not a ltd company or anything?

No not a ltd company just basically doing it from home to begin with and seeing where it goes from there....

immoral_angeluk

Orville wrote: »

No not a ltd company just basically doing it from home to begin with and seeing where it goes from there....

That's fine. From an income point of view it'll be difficult really as you usually make a loss for tax purposes in the first year due to set up costs etc, but what you'll be looking at is your average net profit pus any benefits received, which will be your income basically. As I said, difficult to work out if you're just starting! I would recommend calling the DRO unit and asking how they'd like you to work it out.
Make sure you keep records of your accounts, expenses and set up costs too..