Debt Relief Orders (DRO) - Information & help thread

sadieq

I had a debt relief order in April 2010.
It helped me start over, but at the time I was not thinking of the future, just of surviving as a lone parent.
I am a single mother to 4 children and because of all the government changes, I have decided to try to get back to work sooner rather than wait for my youngest to reach 5, he is 2.5yrs old.
In September my 4yr old starts full time school along with the older two, so it was just sorting childcare for my youngest.
I have found a pre-school and sorted it all out, but now comes the crunch.

I want to set up as a self employed cleaner, running my own business, is it something I can do, I thought I could but now wondering if I am not allowed to run a business, even though initially it will be just me?

Can anyone advise me please, thanks

fatbelly

sadieq wrote: »

I had a debt relief order in April 2010.
It helped me start over, but at the time I was not thinking of the future, just of surviving as a lone parent.
I am a single mother to 4 children and because of all the government changes, I have decided to try to get back to work sooner rather than wait for my youngest to reach 5, he is 2.5yrs old.
In September my 4yr old starts full time school along with the older two, so it was just sorting childcare for my youngest.
I have found a pre-school and sorted it all out, but now comes the crunch.

I want to set up as a self employed cleaner, running my own business, is it something I can do, I thought I could but now wondering if I am not allowed to run a business, even though initially it will be just me?

Can anyone advise me please, thanks

There's no problem with you becoming self employed. You might find credit difficult to obtain due to the DRO showing on your credit file till April 2016, but that's the only effect.

sadieq

thank you, don't and hopefully won't need credit as its small start up costs and I really don't want to start off in debt, so my plan is to just build it up

ewo.k

Hi,

I have made the decision to apply for a DRO due to £1200 council tax arrears from my previous property, a £2000+ student overdraft and a £1200 credit card debt .

I take home £985 a month and if I list all my expenditure I am left with £36 p/m to split between my creditors.

However...

I live with my girlfriend and on the I&E I have simply listed my income then my contribution to bills i.e. half rent, half council tax, half G&E etc and also a £150 amount I pay to my parents for a loan they took out on my behalf last year. Are my parents technically classed as a creditor therefore should not appear on the I&E or could this come under 'other' as I obviously cannot leave my parents in the lurch? Do I need to list my GF's income? These are my debts so I don't want her to be included for any aspect of it if I can help it.

Thanks in advance

fatbelly

ewo.k wrote: »

Hi,

I have made the decision to apply for a DRO due to £1200 council tax arrears from my previous property, a £2000+ student overdraft and a £1200 credit card debt .

I take home £985 a month and if I list all my expenditure I am left with £36 p/m to split between my creditors.

However...

I live with my girlfriend and on the I&E I have simply listed my income then my contribution to bills i.e. half rent, half council tax, half G&E etc and also a £150 amount I pay to my parents for a loan they took out on my behalf last year. Are my parents technically classed as a creditor therefore should not appear on the I&E or could this come under 'other' as I obviously cannot leave my parents in the lurch? Do I need to list my GF's income? These are my debts so I don't want her to be included for any aspect of it if I can help it.

Thanks in advance

Your girlfriend's income is not relevant. You are correct to list your income and your contribution to the bills.

However the payment of £150 to your parents is not allowable. From what you say they should be listed as creditors and if so you will be forbidden to make payment to them.

But this depends on the agreement that you have with them. Legally the loan they took out is not yours. If their intention was to gift you this money and you can explain what it was spent on (if asked) then it may not count as a debt. You should discuss this with your intermediary.

mama_rayin

Hello, could anybody tell me whether student loans count as income for the purposes of DRO? I'm starting a university course next week so will be in receipt of maintenance loan, special support grant, childcare grant and parents learning allowance, housing benefit, child tax credit and child benefit.

I'm worried that I won't be able to continue with my DRO application (am on a waiting list) because of the above income

fatbelly

The answer is yes, but they are averaged out over the period to which they relate.

The surplus figure is the important one and your intermediary will have some difficult sums to do. But I'd be surprised if the bottom line showed a surplus of more than £50 per month.

oorenfoo

ewo.k wrote: »

Hi,

I have made the decision to apply a DRO due to £1200 council tax arrears from my previous property, a £2000+ student overdraft and a £1200 credit card debt .

I take home £985 a month and if I list all my expenditure I am left with £36 p/m to split between my creditors.

However...

I live with my girlfriend and on the I&E I have simply listed my income then my contribution to bills i.e. half rent, half council tax, half G&E etc and also a £150 amount I pay to my parents for a loan they took out on my behalf last year. Are my parents technically classed as a creditor therefore should not appear on the I&E or could this come under 'other' as I obviously cannot leave my parents in the lurch? Do I need to list my GF's income? These are my debts so I don't want her to be included for any aspect of it if I can help it.

Thanks in advance

Hey! Whilst skimming through the forum I came across your post and felt I had to reply.

Be careful, as when I applied for my DRO, I am 80% sure that my Solicitor said Council Tax and other such bills CANNOT be included in a DRO. Luckily I did not have that problem, but I am sure that was the case. I would hate to think you believed you were going to have it written off, only to find in 12 months that is not so.

Thanks.

oorenfoo

fatbelly

oorenfoo wrote: »

Hey! Whilst skimming through the forum I came across your post and felt I had to reply.

Be careful, as when I applied for my DRO, I am 80% sure that my Solicitor said Council Tax and other such bills CANNOT be included in a DRO. Luckily I did not have that problem, but I am sure that was the case. I would hate to think you believed you were going to have it written off, only to find in 12 months that is not so.

Thanks.

oorenfoo

Generally Council Tax CAN be included in a DRO.

The only exception is where instalments are being paid and up to date on a current year's council tax and the right to pay in instalments has not yet been lost.

You did your DRO through a solicitor? Which Competent Authority did they work for?

dd0910

I was just wondering, what are included in assets? I have 2 tv's, one of which was given to me by my mum, we also have a computer and 2 laptops as well as games consoles. I'm assuming these would be counted.

Also does someone come round to your house to check?