Debt Relief Orders (DRO) - Information & help thread

scarlet55

michellew wrote: »

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

the only question i can answer with certainty is about your social fund loan...it is added to your dro and the dwp will have to stop taking payments from you....i know this because my dro was approved over 6 wks ago and the same thing happened....regarding the DLA, it may have to be added, im not sure, but iff it is it will go in the "in and out " box on your expenditure, and it wont have to be accounted for.....one of the experts will be along shortly im sure, to answer these questions fully....good luck with it...:)

sarbaz2007

Ive been to the advise at the cab today, got everything sorted apart from the fact that he wont submit my application unless i give him the refrence/account nmber of my 2 statue barred debts from 8 years ago. He said he want this in writing.

Now as i have posted up here about this before the bank do not hold any details about me, i even went into branch today the said your account is passed to our debt management and is clear in our part. so called debt management they couldnt find anything either and advised me its too old.

Now the adviser says he either wants the above or a letter from the bank/mobile company concerned to send me a letter to confirm i do not owe them any money (they will not do this) or he wont put my dro through and keeps insisting i declare bancruptcy as all debts are included.

Can someone tell me if this is the case and if not what i should tell him. Also is it possible to ge all me documentation back and go through a diffrent company and not declare those debts or will the draft aplication be a problem.

Sorry for long post.

scarlet55

summerstreetallotments wrote: »

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

sorry summerstreetallotments but you are wrong about the social fund...as i explained to michellew it has to go in your dro and the dwp will stop taking payments from it....

scarlet55

sarbaz2007 wrote: »

Ive been to the advise at the cab today, got everything sorted apart from the fact that he wont submit my application unless i give him the refrence/account nmber of my 2 statue barred debts from 8 years ago. He said he want this in writing.

Now as i have posted up here about this before the bank do not hold any details about me, i even went into branch today the said your account is passed to our debt management and is clear in our part. so called debt management they couldnt find anything either and advised me its too old.

Now the adviser says he either wants the above or a letter from the bank/mobile company concerned to send me a letter to confirm i do not owe them any money (they will not do this) or he wont put my dro through and keeps insisting i declare bancruptcy as all debts are included.

Can someone tell me if this is the case and if not what i should tell him. Also is it possible to ge all me documentation back and go through a diffrent company and not declare those debts or will the draft aplication be a problem.

Sorry for long post.

sarbaz you have to include ALL debts, even the statute barred ones....can't he just put down reference number unknown as fatbelly suggested a while ago....iff your not happy with your ai then yes you can get all your documentation back and go with some-one else....it just seems a shame after youve waited this long for an appointment, to have to go thru it all again....whatever you decide i wish you all the luck in the world as you seem to have been trying to do this for ever....:)

michellew_2

Thanks so far guys

scarlet55

michellew wrote: »

Thanks so far guys

just wait for one of the experts michellew...they will have ALL the answers for you....but i am 100% right about the social fund....the dwp made several appeals against it being put into dro's but they lost every-one....and as i said, my dro went thru over 6 wks ago and my social fund HAD to be included....a couple of wks later i recieved a letter from the dwp saying they could no longer deduct it from my benefit......and they havnt...:)

Beki88

With regards to the DWP my mum has some deducted for her loan, its due to end in September but will be putting it in anyway. The amount they take is £9 a week, so 36 a month, edging her closer to the 50 limit, she has been told she HAS to start buying better food and eating more (due to her diabetes and the amount put for food was very low as she doesnt have the money spare) so would she be able to say that the money even though it was freed up has been allocated to something else (food in this case)? If that makes any sense?

fermi

Housing Benefit and Council Tax Benefit Circular

Recoveries from benefit for DWP Debt, Social Fund debt and HB debt (collected by Local Authorities) must cease with immediate effect where the debt is subject to a DRO. To do otherwise runs the risk of being found in contempt of court.

scarlet55

Beki88 wrote: »

With regards to the DWP my mum has some deducted for her loan, its due to end in September but will be putting it in anyway. The amount they take is £9 a week, so 36 a month, edging her closer to the 50 limit, she has been told she HAS to start buying better food and eating more (due to her diabetes and the amount put for food was very low as she doesnt have the money spare) so would she be able to say that the money even though it was freed up has been allocated to something else (food in this case)? If that makes any sense?

hi beki......my loan was also £9 a wk and i too was worried about this freeing up money but my ai just redistributed it on my soa.....for example, she put my food budget at £216 a month which also included things such as toiletries cleaning products ect...and i live alone....iff your mum is on benefits tell her not to worry as what she gets from the dwp is for LIVING expences only, they dont give her anything for luxurys...i wish...lol....her ai will juggle all her figures for her..xx

Beki88

Thats great thanks so much Her food was put down at 110 a month which is what she genuinely spends sometimes less if she needs gas or electric.

I do have another query though, was going to ask CCCS but couldn't get through to them.
Currently she is paying £23 a fortnight which includes rent arrears (about 3 quid) and a bit that her benefit doesnt cover (10 a week), this is becuase my brother lives with her but he doesn't pay towards it leaving her to pay it, he is hopefully moving out soon meaning she will get full HB again, leaving her with the £20 extra a fortnight. Would she be able to continue paying the 23 to get her arrears down or would the OR deem that to be spare income as it isn't something she has to pay but would be done by choice? God I am confusing myself here haha