Debt Relief Orders (DRO) - Information & help thread

wba31

sarbaz2007 wrote: »

Statement of Affairs and Personal Balance Sheet

Household Information[/b]
Number of adults in household........... 2
Number of children in household......... 1
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 409
Partners monthly income after tax....... 0
Benefits................................ 1019
Other income............................ 0
Total monthly income.................... 1428

Monthly Expense Details[/b]
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 370
Management charge (leasehold property).. 0
Council tax............................. 51
Electricity............................. 40
Gas..................................... 40
Oil..................................... 0
Water rates............................. 30
Telephone (land line)................... 53
Mobile phone............................ 50
TV Licence.............................. 12
Satellite/Cable TV...................... 0
Internet Services....................... 13
Groceries etc. ......................... 420
Clothing................................ 10
Petrol/diesel........................... 100
Road tax................................ 15
Car Insurance........................... 87
Car maintenance (including MOT)......... 20
Car parking............................. 20
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...................... 15
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 10
Haircuts................................ 30
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 10
Total monthly expenses.................. 1406


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 2200
Other assets............................ 0
Total Assets............................ 2200

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
Social fund....................769.64....0.........0
Lloyds overdraft...............3000......0.........0
Natwest cheque.................3500......0.........0
T-Mobile.......................250.......0.........0
Next...........................750.......0.........0
Additions......................335.......0.........0
Very...........................307.......0.........0
Marshall ward..................460.......0.........0
Littlewoods....................140.......0.........0
Vanquis........................980.......0.........0
Aqua...........................845.......0.........0
Capital 1......................610.......0.........0
Total unsecured debts..........11946.64..0.........


Monthly Budget Summary
Total monthly income.................... 1,428
Expenses (including HP & secured debts). 1,406
Available for debt repayments........... 22
Monthly UNsecured debt repayments....... 0
Amount left after debt repayments....... 22

Personal Balance Sheet Summary
Total assets (things you own)........... 2,200
Total HP & Secured debt................. -0
Total Unsecured debt.................... -11,946.64
Net Assets.............................. -9,746.64

As you know all my benefits/salary are worked out as (Xx52/12). so would taht not mean my expenses mainly the rent and council tax should be sumed up in the same way?

In regards to the old 10 year debt even though ive put company name and rough estimate his asking for refrence o letter which bank can not provide as i called them.

budget looks workable to me, some high figures, but then some very low, I dont foresee the budget being a problem. Car may be though. Who owns the vehicle, and what exactly is it (make, model, engine, spec, year of registration)?

sarbaz2007

wba31 wrote: »

budget looks workable to me, some high figures, but then some very low, I dont foresee the budget being a problem. Car may be though. Who owns the vehicle, and what exactly is it (make, model, engine, spec, year of registration)?

Car is in dads name and seems to be okay as posted up here previously and documents to prove it.

Can you advise which figures i could work with changing?

wba31

sarbaz2007 wrote: »

Car is in dads name and seems to be okay as posted up here previously and documents to prove it.

Can you advise which figures i could work with changing?

The phones seem a little high - I would say around £50 tops, but you could put another £50 or so onto clothing, and then things like sundries, entertainment costs, could easily put £30 into each of them.

The car being in your dads name and proving it is his vehicle is fine, means it shouldnt be an issue.

scarlet55

hope one of you experts can answer this for me....my dro was approved 6 wks ago on the 7th april, and out of curiosity ive just logged on to my old account with lloyds to see iff it was still there....not only is it still there but it is still active and they are continuing to put charges on for missed payments...i know i wont have to pay these charges but when can i expect these accounts to be closed....thanx guys xx

wba31

scarlet55 wrote: »

hope one of you experts can answer this for me....my dro was approved 6 wks ago on the 7th april, and out of curiosity ive just logged on to my old account with lloyds to see iff it was still there....not only is it still there but it is still active and they are continuing to put charges on for missed payments...i know i wont have to pay these charges but when can i expect these accounts to be closed....thanx guys xx

The accounts will not close until your DRO moratorium period ends at the end of the 12 months. the accounts have to remain open incase your DRO is revoked during the moratorium period.

alleycat21

Hi. My DRO was granted last Friday :j but I have a couple of questions, I wonder if someone could help with them?

1) I am now worrying that my creditors might try to challenge the DRO. On what grounds might they do this?

2) What would happen if I received a small lump sum as a gift? Every Christmas my lovely grandparents send me a cheque for £500, of which £300 is intended for OH and myself and £100 for each of our two children. And for my birthday they usually send £300. Would this invalidate my DRO? How would it be found out about? I could ask them not to send it, or to make it out to my mum, but this would raise a lot of questions - they, and my mum, would be extremely disappointed and probably angry with me for getting myself into such a mess financially.

Similarly, we might be due to receive a 'potential payment' from the Tax Credits. I don't know how much this will be, or if we will get it or not, but doubt it would exceed £300. Would this cause my DRO to be revoked? It would be a one-off payment and we would need to use it for household items that we haven't been able to afford because of all our debt repayments. It would not affect our regular income/expenditure, which is still very tight. I'm worried sick that it will exceed the £300 and my DRO might be revoked for the sake of a sum that wouldn't even make a dent in my debts - I don't even want it if that is going to happen.

Can anyone please advise? I've read the terms of my DRO but can't find clear guidance.

wba31

alleycat21 wrote: »

Hi. My DRO was granted last Friday :j but I have a couple of questions, I wonder if someone could help with them?

1) I am now worrying that my creditors might try to challenge the DRO. On what grounds might they do this?

2) What would happen if I received a small lump sum as a gift? Every Christmas my lovely grandparents send me a cheque for £500, of which £300 is intended for OH and myself and £100 for each of our two children. And for my birthday they usually send £300. Would this invalidate my DRO? How would it be found out about? I could ask them not to send it, or to make it out to my mum, but this would raise a lot of questions - they, and my mum, would be extremely disappointed and probably angry with me for getting myself into such a mess financially.

Similarly, we might be due to receive a 'potential payment' from the Tax Credits. I don't know how much this will be, or if we will get it or not, but doubt it would exceed £300. Would this cause my DRO to be revoked? It would be a one-off payment and we would need to use it for household items that we haven't been able to afford because of all our debt repayments. It would not affect our regular income/expenditure, which is still very tight. I'm worried sick that it will exceed the £300 and my DRO might be revoked for the sake of a sum that wouldn't even make a dent in my debts - I don't even want it if that is going to happen.

Can anyone please advise? I've read the terms of my DRO but can't find clear guidance.

1) the creditors will only appeal if they feel you are not eligible for the DRO for some reason, like you told them you own a house or they know you have made preferential payments on debts...

2) with regards to this gift of money... could you ask them to make the cheque out to your partner due to banking issues? you can have up to £300 in savings, but an exact £300, is that the limit or 1p over? im not sure to be honest, but have it paid to your partner, there then isnt £300 in your account (£150 is yours...)

with the tax credits is it a result of a backpayment? if so the total can be classed as an income and split into the number of months its paid for (so £300 for 10 months becomes £30 a month...)

michellew_2

Couple of questions for you clever folk please

My husband and I are looking at a DRO each, I understand the £50 or less disposable income - as pretty much everything is joint is that £50 (less than) each or joint in the family budget ( we are on benefits and everything goes into the "pot")?

We are also hopeful of some PPI from the bank after the recent ruling how would this change things?

If one of us were to find a job that drastically increased our income (unlikely but possible) how would this affect us if it was within the "moratorium" period?

Social Fund loan - is this added to DRO as we obviously have less benefit coming in due to payments to SF?

Is DLA (my sons) taken as income?
Thanks

scarlet55

wba31 wrote: »

The accounts will not close until your DRO moratorium period ends at the end of the 12 months. the accounts have to remain open incase your DRO is revoked during the moratorium period.

oh ok i didnt know that.......as always..thanx wba...:)

summerstreetallotments

re. michellew,
D.L.A. is a moot point so You need to get expert advice...C.C.C.S. told me this counted as part of the total income..."rethink" said not to include it...so ..best to ask an expert...re. Social fund...they don't include this...but you need to have your D.R.O. in place before this is paid off otherwise your income could be too high...it gets well complicated.

re. Alleycat I enquired about something similar to this as my son gets £10.00 every Christmas and was told to include it as income as it is regular and I expect it...actually haven't as it's such a small amount...so...alleycat ..you should get advice about this...maybe...x