Debt Relief Orders (DRO) - Information & help thread

wba31

Sillymiss wrote: »

Hi everyone, I've been reading up on this thread most of the day, I decided to take the plunge and register then I can pick your knowledgable brains, please be gentle with me!


I only heard of a DRO today from this thread, it sounds like the answer to my prayers, I want to know if I will be eligible on the following;

I know a lot of people who have been accepted for DRO's are on benefits, I work part time, my OH full time but he is getting in debt due to not having enough money month to month for the bills as I am paying debts with my wages. My little boy is due to start school next month too which will Increase costs (after school club, lunches etc), will my income go against me? I certainly have less than £50 disposable income come payday!

2nd, I have a DMP with CCCS with 3 o/s debts which has been running for about 6 years, but I have about £5k worth of debt I incurred in the years since it started that they don't know about (I'm an idiot, I know) all in all I have about £10,000. Will that go against me with the CCCS and preferential creditor treatment? It's been a case of robbing Peter to pay Paul, I haven't defaulted on any payments but basically we can't cope. I'd rather not include the 'new' debts in my DMP, I've been paying it for years and I've only paid 2/3, it will take forever this DRO seems like a dream, to be debt free in a year.

Lastly, I had a house jointly with my OH but when we moved to a new house he took it in just his name as with my credit history we didn't think we would get a mortgage, the equity went into the deposit for the new house, this was 18 months ago. My name isn't on the deeds at all. Will this stop me in getting a DRO?

Thanks for reading, I would really appreciate any help and advice

Unfortunately, because of the property I do not believe a DRO is the best option for you. Although your name is not on this property, i believe there are 2 reasons that stand out to me that make you ineligible due to "beneficial interest" in the current property.

Firstly, equity that you had a right to, was paid down as a deposit on the house, so you did put money into in the first place, and should you ever have to challenge your OH for anything owed to you in a separation, there would be money there you can lay claim to. That in itself is enough to say you have financial interest in the property therefore the DRO is not an option.
Secondly, if you are in any way contributing to the household costs, you are building further interest in the property.

obviously point 2 is situation dependant, but point 1 is enough to advise you against this.

fatbelly

The property also flagged up a red light from me. I know from experience (and I think the DRO unit have confirmed this in a newsletter) that if you owned property within two years of the application, they will want to see a completion certificate and will ask questions about that transaction.

It's one of the few things on a DRO application that they do seem to routinely investigate.

carlag_2

(this is sillymiss)
Hmm, apparently I created an account years ago that I have no recollection of and when I tried to log in it's reverted to the old username. Thanks to both of you for your replies, I really appreciate it. So there is no way I could do a DRO even after my name hasn't been on the mortgage for 2 years? It sounded too good to be true, lol.

What would you advise me to do for the best? I'm just sick of this endless debt that never seems to go down, constant scratching around for money, having to split £15 worth of shopping onto 3 credit cards and my other half who has always been really good with money has just taken out a loan to pay his credit card which was to pay his overdraft. I just want to be done with debt and credit for good. I feel like we're in a pit and can't get out. Plus my workplace is being taken over in April and I may end up jobless. you bet I've learned an important lesson from all this.

fatbelly

carlag wrote: »

(this is sillymiss)
Hmm, apparently I created an account years ago that I have no recollection of and when I tried to log in it's reverted to the old username. Thanks to both of you for your replies, I really appreciate it. So there is no way I could do a DRO even after my name hasn't been on the mortgage for 2 years? It sounded too good to be true, lol.

What would you advise me to do for the best? I'm just sick of this endless debt that never seems to go down, constant scratching around for money, having to split £15 worth of shopping onto 3 credit cards and my other half who has always been really good with money has just taken out a loan to pay his credit card which was to pay his overdraft. I just want to be done with debt and credit for good. I feel like we're in a pit and can't get out. Plus my workplace is being taken over in April and I may end up jobless. you bet I've learned an important lesson from all this.

Don't forget, a joint mortgage is likely to show on your credit file for six years. So, if you forget a DRO for the moment, that leaves a dmp as the main option.

Now, you already have one, but it doesn't seem to be stopping both of you slipping further into debt and your situation doesn't look like improving in the near future.

I still suspect a re-jigged dmp (for both of you) is going to be the way forward while you are property owners, but it's hard to advise without full details.

Why don't you start a new thread on the debt-free wannabe board and post a statement of affairs. That links to a calculator that you can cut and paste - just remember to 'format for mse'

scarlet55

FireyFaerie wrote: »

When I was married I had previous debts and my now ex husbands mother paid off these debts aswell as her sons to help us out.

..you say that she paid off these debts for you as well as your ex's debts....did she actually state that this was a loan that needed repaying or is it a case of now you are no longer with her son then she wants the money back...iff it is the latter then you dont owe her anything...is she also demanding the money back from her son...probably not...i can understand that you want to pay her back but you cant give her what you dont have..:)

fatbelly

FireyFaerie wrote: »

I am struggling to find who is best to speak to for advice on the current situation (and those who did my dro are now not contactable).

My dro ends in feb. When I was married I had previous debts and my now ex husbands mother paid off these debts aswell as her sons to help us out.

Due to problems between me and my ex partner she is now asking for the money back. I have no issue with repaying the money as it did go on my debts. My problem is due to my dro I do not have much money spare to make repayments.

Can anyone advise me on this or give me pointers on who would be best to contact? I am struggling to get hold of cab.
I do want to resolve this situation, but do not want to end up in a situation where I can no longer provide for my children etc.

If this had been a 'debt' at the time of your application, it would have gone on your dro and you would have been forbidden to make payments to her.

Your line is that this has just changed from being a third-party payment not requiring repayment, to one that does, and that you want to comply.

Surely the reason that you do not have much money spare to make repayments is not your DRO, which forbids you to repay your creditors, but your income and expenditure, which qualified you for a DRO in the first place.

I think you should tell her that you were grateful for her help, but that this was a gift, not a loan, and if it had been a loan, it would have been on the DRO with liability discharged in Feb.

scarlet55

FireyFaerie wrote: »

At the time she made the payments it was agreed verbally that I would pay her back. But due to being married to her son all spare money constantly went on his car (which ever one he had at the time). She also spent a lot more money on her son with the same verbal agreement (that he would pay her back). When we first split up he constanly brought up that I owed his mother money, and on several occassions I sent her text messages asking her to send me a letter with details of what was owed so that I could start paying her back. I also asked her again just before my dro went through as I wanted to add this on. But due to her not replying and not asking it was advised that it was not included on the dro.
You are right in that the income and expenditure means I cannot afford to pay towards another debt.
She has proof that she has paid for MY debts.. letters of the debts with my name and address on along with cheque numbers from the cheques that were used to pay off the debts. She says she is asking her son to also pay her back, but I know that he will get away with not doing as it is always the case.
This debt has only been brought up since I have applied for mediation with the ex to discuss child access issues. And because I have stopped giving into his orders and have refused to send nappies, milk and wipes any longer.

just because she has your debt letters and her cheque numbers showing that she paid them off doesnt mean it was not a gift...i cant understand why you never included these debts on your dro instead of letting your mil pay them....was it to put you under the £15000 threshhold..

scarlet55

FireyFaerie wrote: »

The debts were paid off years ago when I was married to my now ex husband... before the debts I have now were even acquired so to speak.
Once I left my ex husband I was left with debt that was built while I was with him but after my debts were paid off. I had no way of paying off the debts as a single mum on benefits which is why I applied for a dro. He also has debts, but lower than mine and he also applied for a dro. He is also subject to this order but works cash in hand and does not follow the dro rules. So I am presuming at the end of the 12 months he will still have his debts, unless he gets away with it. Hope that makes sense.

well iff your ex mil has never asked for this money back untill now, then it just looks like she's trying to hurt you because of all the trouble you are having with your ex over access to your child...i wouldnt worry about it..just tell her you are sorry but havnt got it and any spare money you have goes on her grandchild...and iff in the future you find yourself with spare money then you will pay her..other than that theres little she can do about it...

sairny

Hi,
I am considering a DRO, I have approx' 12k of debt on credit cards and catalogues. I do not own a house or a car, my car is a motability lease car as I am disabled and on DLA. I am married with one child and my husband works part time and also gets working tax credit and carers allowance. My income is the DLA, together with child benefit and child tax credit.
Before I put a SOA up here, do I include my husbands earnings in it? I have been reading through all the posts, but i'm still unsure if it is worked out on half of the household income or just my income as the dro would be in my name? but if it is just my individual earnings - are all the household outgoings counted?
Sorry if all this has been asked before, very stressed at the moment!

wba31

sairny wrote: »

Hi,
I am considering a DRO, I have approx' 12k of debt on credit cards and catalogues. I do not own a house or a car, my car is a motability lease car as I am disabled and on DLA. I am married with one child and my husband works part time and also gets working tax credit and carers allowance. My income is the DLA, together with child benefit and child tax credit.
Before I put a SOA up here, do I include my husbands earnings in it? I have been reading through all the posts, but i'm still unsure if it is worked out on half of the household income or just my income as the dro would be in my name? but if it is just my individual earnings - are all the household outgoings counted?
Sorry if all this has been asked before, very stressed at the moment!

The DRO will be based on your income and expenditure only, but if you operate a joint budget with your husband, do a joint budget with an advice agency and the intermediary will split it and do the nasty maths for you when completing your DRO.

If your budget is already split, ie you just pay for items a and b out of your expenditure and your husband pays for the rest, just prepare on what you know.