Debt Relief Orders (DRO) - Information & help thread

Orville

FireyFaerie wrote: »

Not sure if you can help, but how closely are you watched with a DRO? I know I am allowed £50 per month left over after food and bills etc, which is how much I get or less at the moment as I am on Income Support and a single mum. I would love to go back to work, working part time somewhere. But how would I work out how much spare income I would have etc before actually getting a job? I know I can work out rough costs of things like childcare, but what happens if I end up with an extra £10-£20 for example?
Also.. the job centre do incentives at the moment. If you get back into unemployment you get given a one off payment of something like £240 and then £40 a week or month or something simular for 1 year. Am I right in thinking I would not be able to go for this incentive as it would effect my DRO and my debts would be given back?
I would love to go back to work now my youngest is 1.. only part time, but I worry I will have wasted my time with my DRO and just get all my debts given back, meaning I will be b*ggered financially and trying to cope paying them off. am I better just waiting until my DRO ends before looking for work?
Sorry its so long and includes so many questions, I just want to better myself for my children, but it seems so hard in the already tight situation I am in.

How far into your DRO are you?. As far as i am aware they do not monitor you. TBH i can't see how they can unless someone were to tip them off so to speak. I don't think the dro is linked to the tax system in anyway, so if you did work i can't see how they would know. Be careful though that if you do go that route and they do somehow find out you could be leaving yourself open to have the dro revoked or restrictions placed on it.

Orville

Just_Peachy wrote: »

Hi,

I have posted this on the IVA and DRO board but only had one response, so hoping someone here can help......

I am planning on applying for a DRO when i go on Maternity leave in November as my income is going to drop by 2 thirds and I have no way of making my repayments. I have read all the criteria etc and I think I will be eligible for a DRO.

However I am on a temporary contract at work and have just found out that when I leave in November I will get my Statutory maternity pay in one lump sum as I am not returning to work there, which by my workings out (so could be wrong!!) would be a lump sum of £5120 after tax and NI deductions.

Does this mean I will not be able to apply for a DRO? Although I am getting the payment in a lump sum, it is actually my wage for the 39 weeks of maternity leave. I have to live off this and am planning on dividing it into weekly or monthly amounts and living from these amounts. I will be able to get letters from my work stating that this is a lump sum statutory maternity payment and will also have my Maternity forms from my midwife to prove I am an expectant mother.

This has confused me lots and I am hoping it does not stop my application for a DRO - any advice is much appreciated.

Thanks in advance
JP

Well i know you can't have assets of over £300. So if your gonna have 5k in the bank i would say you wouldn't qualify. I may be wrong though, check with the cab or wait for Fatbelly and co to post.

scarlet55

Orville wrote: »

How far into your DRO are you?. As far as i am aware they do not monitor you. TBH i can't see how they can unless someone were to tip them off so to speak. I don't think the dro is linked to the tax system in anyway, so if you did work i can't see how they would know. Be careful though that if you do go that route and they do somehow find out you could be leaving yourself open to have the dro revoked or restrictions placed on it.

i wouldnt even try this iff i were you......iff the OR found out, not only would you have your debts back, but any interest that will have accrued....plus you could also be prosecuted.....

Orville

scarlet55 wrote: »

i wouldnt even try this iff i were you......iff the OR found out, not only would you have your debts back, but any interest that will have accrued....plus you could also be prosecuted.....

Gong back to work in itself incurs extra expences of which could keep the posters funds still below the threshold. Remember you don't have to be unemployed to have a DRO.

scarlet55

Orville wrote: »

Gong back to work in itself incurs extra expences of which could keep the posters funds still below the threshold. Remember you don't have to be unemployed to have a DRO.

...yes i know that orville, but the O.P was asking what would happen iff they go over the £50 limit...its just best to declare it to the OR, even iff its only £10 or £20 over....

Orville

FireyFaerie if you think you will have say £10-£20 left over if you go back to work be aware that you do not have to claim in-work credit. If not claiming this leaves you still under the threshold then you will be fine. But in order to claim that, you have to have been claiming jsa, Income support or esa for at least 12 months prior to going back to work. As far as the back to work payment goes i would have thought you would be fine as it's under 300 which is the threshold for assets. If you want to work go for it i say, just resist claiming the inwork credit so you don't then go over the threshold. I am not sure however on what you would need to do with regards to the IS. I am sure you will need to do another SOA which would include your wages and new expenses. Once that is done and ready weather you call the IS direct or go through the CAB or whomever did your origional DRO again i am not sure.

scarlet55

FireyFaerie wrote: »

My DRO ends in February. I am struggling with things like not being able to get a budgeting loan for over £500. Which is why I was considering getting a job in hopes to afford more, but obviously then I may not be in the DRO terms. I do not have enough to save anything, so when it comes to things breaking I am stuck. At the moment my washer and fridge/freezer are on their last legs. But I am unsure how to tackle this when they do break? As in the past I would of just gotten something from brighthouse when there was only other way. But DRO states you cannot attain credit, and brighthouse is credit isnt it?

the dro states that you cannot obtain credit over £500 without declaring that you have a dro......why not get a budgeting loan for £300, and when its paid off you can get another one....:)

Orville

FireyFaerie wrote: »

My DRO ends in February. I am struggling with things like not being able to get a budgeting loan for over £500. Which is why I was considering getting a job in hopes to afford more, but obviously then I may not be in the DRO terms. I do not have enough to save anything, so when it comes to things breaking I am stuck. At the moment my washer and fridge/freezer are on their last legs. But I am unsure how to tackle this when they do break? As in the past I would of just gotten something from brighthouse when there was only other way. But DRO states you cannot attain credit, and brighthouse is credit isnt it?

As far as brighthouse goes i have no idea as i have never had any dealings with them. There are places like freecycle which deal with 2nd hand goods etc.
Now as far as budgeting loans go are you aware you can have more then one..?
The Dro rules state that if you get a loan over £500 you have to inform them you have a DRO, but as far as i am aware (and i am willing to be corrected on this) it does not say you can't have more then one loan under 500 totaling more then £500.
If you are a single parent with one child i think it's a total of £850 you can get through the budgeting loan scheme, but you can only make a maximum of 3 applications per year even if those three total under £850. At worst you should be good for £499 through the budgeting loan scheme.

Orville

If it is that you can't get over 500 in total. Then you could always get a 499 loan pay it off and if an emergency again came along top it back up to 499.

scarlet55

FireyFaerie wrote: »

Thanks. The last 1 I got was for £499.99 lol. They did offer me the £850 but like you say I wasn't allowed. When you say if it's over £500 you have to declare it, does that mean in special circumstances they may allow you to?
I am getting myself so stressed at the moment. My last budgeting loan went on the kids birthdays (they are 2 weeks apart), on household things I urgently required and on clothes and shoes for my kids. I am still in desperate need of clothes for myself (still in a lot of maternity clothes but hey ho lol).. but the kids come first
There are so many little things I need, but cant afford. Like nursery photographs I would of LOVED to have been able to order, but just haven't the spare cash to do so. I cannot wait for February to come along so I can get a job and start saving and buying the things the family need.

you have to declare it to the person you want the credit from....:)