Debt Relief Orders (DRO) - Information & help thread

fatbelly

sarbaz2007 wrote: »

So, should the overdraft be cancelled before i make the application or should i just leave and not include it on the dro? thanks

sarbaz2007 wrote: »

Would you have to declare a car if it is in your partners (wife) name? Paid for by her but log book in my name?

I was told technically i would declare not owing a car because its not mine, i wanted to confirm before i make a dro and it gets refused for me not declaring it.

If you can get the account back in the black and cancel your overdraft, that is best. But if you are not overdrawn on the date of determination, it doesn't have to be listed. And if the overdraft limit is less than £500 that's not a problem for the moratorium period.

If the car is owned by someone else but you are just the registered keeper then it is not your asset but you could be asked to evidence this. If it's worth less than £1000 on Parkers guide it might be easiest just to list it.

I thought you got a DRO last year sometime?

sarbaz2007

I thought you got a DRO last year sometime?[/QUOTE]

Yes i did thanks to your help:beer:, this is for a friend and told him this might be a good option for him as his lost his job.



one other question is his credit report shows a hire agreement for a car which was setteled 1 year ago, would they query this. He had sold the car 1 year ago. But he only wants to apply to the dro as he has now lost his job
Would this count as disposing of assets and does he need to declare it?

By the way really nice to see you guys still on here helping people.:A

jak

Hello! Help! I owe less than £15k and think i might need a DRO. My confusion is if my repayments count when taking into account what ive got leftover every month? EG. after debt min payment and all bills excluding food then ive got £38 left over a month. If I dont pay my minimum payments then i would have £200 left over evey month. Does this mean i would qualify or not?
I've so confused. Please help!

fatbelly

jak wrote: »

Hello! Help! I owe less than £15k and think i might need a DRO. My confusion is if my repayments count when taking into account what ive got leftover every month? EG. after debt min payment and all bills excluding food then ive got £38 left over a month. If I dont pay my minimum payments then i would have £200 left over evey month. Does this mean i would qualify or not?
I've so confused. Please help!

It's the surplus income that you have available over and above essential expenditure. So £200 would disqualify you. But the allowances are fairly generous. How about doing a full statement of affairs and posting it here?

jak

I keep doing a statement of affairs and the fliping thing keeps going blank. I'll keep trying but in the meantime i've a shortfall of £281 pcm. According to the SOA.

jak

I've left aprs blank as i dont know them.

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 1
Number of children in household......... 1
Number of cars owned....................
Monthly Income Details
Monthly income after tax................ 398
Partners monthly income after tax....... 0
Benefits................................ 919.2
Other income............................ 0
Total monthly income.................... 1317.2
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 665
Management charge (leasehold property).. 0
Council tax............................. 98
Electricity............................. 24
Gas..................................... 20
Oil..................................... 0
Water rates............................. 30
Telephone (land line)................... 22
Mobile phone............................ 22
TV Licence.............................. 12
Satellite/Cable TV...................... 21
Internet Services....................... 0
Groceries etc. ......................... 200
Clothing................................ 10
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 120
Other child related expenses............ 10
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 14
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 10
Haircuts................................ 5
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1283

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

No Secured nor Hire Purchase Debts
Unsecured Debts
Description....................Debt......Monthly...APR
over draft.....................3000......70........0
credit card....................3650......80........0
loan...........................3033......100.......0
comet..........................699.......25........0
housing overpayment............1285......0.........0
council tax....................492.......0.........0
cat............................365.......10........0
Total unsecured debts..........12524.....285.......-

Monthly Budget Summary
Total monthly income.................... 1,317.2
Expenses (including HP & secured debts). 1,283
Available for debt repayments........... 34.2
Monthly UNsecured debt repayments....... 285
Amount short for making debt repayments. -250.8
Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -0
Total Unsecured debt.................... -12,524
Net Assets.............................. -12,524
Created using the SOA calculator at www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission, using IE browser.

fatbelly

Well that definitely looks like DRO territory to me!

You will need an account for your income that is not connected to your debts so if that overdraft is what you normally use, you need to work on that straight away.

Then you need to link in to an intermediary. CAB and CCCS seem favourite but all the major debt charities can assist.

Keep us posted.

jak

omg thankyou. I've just been sat here in tears. I'm going to cab tomorrow and if I cant get an appointment i'll phone cccs. I'll let you guys know what happens. It's so scary. I never thought i'd have to do this but it's become an impossible situatin.
Thanks again for your reply, it really means so much to me.
J
X

jak

I'm going to open a basic bank account at barkleys hopefully tomorrow. I've got all my stuff ready. What happens about direct debits? I need to sort out so much. Also benefits, can I just ring them and get them to pay into another bank account? Do I cancel all direct debits and set them up again for the new bank account?

fatbelly

Barclays should offer to bring the direct debits across. You want to lose the D/Ds to your debts (loan, credit card etc).

When you get the account details you need to give them to your benefit providers and employer.

Are you sure your CAB has a drop-in session? They're not as common as they used to be. You may have to phone first. Check here (scroll down for 'find my bureau'):

http://www.citizensadvice.org.uk/index/getadvice.htm

I'd be really surprised if you don't have to wait a few weeks for an appointment with a debt adviser - and not every bureau has a DRO intermediary. Anyway, see how you go.