Debt Relief Orders (DRO) - Information & help thread

Young_Hoss

Hi I have recently heard about a DRO after going to court with a council tax bill for £600 i have seen you have to have less than £50 surplus income is that after paying creditors?

I also have a debt to my rent and water rates to the council could this be included in a DRO?

Thanks for any advice

Kyle

wba31

Young_Hoss wrote: »

Hi I have recently heard about a DRO after going to court with a council tax bill for £600 i have seen you have to have less than £50 surplus income is that after paying creditors?

I also have a debt to my rent and water rates to the council could this be included in a DRO?

Thanks for any advice

Kyle

Payments to debts stop so the £50 or less surplus is just for your essential living expenditure

your water arrears will be included in the DRO. If you stop paying rent arrears you could be at risk of eviction, you can include the arrears but maintain an arrears payment less than £50 on them

ethan123

SimIsOnTheUp wrote: »

Hi,

Whoever you go through, for your DRO - National Debtline / CAB etc, will want to see your paperwork / bank statements / proof of income / statements from your creditors, as will the Official Receiver, at the Insolvency Service.

Could your husband get receipts, from the therapist?

I would contact the CAB, and ask them, if tobacco is considered ok.

They have been very helpful, with me!

Good Luck,

Sim.

Hi there. I am actually looking for some clarification on this (or similar) issue of receipts and records.

I understand that if I go ahead with a DRO, I am not allowed to have excess income of over £50 a month. - Though I do need to ask a few questions about this...

1. Does it matter how much you are earning during the critical 1st year after filing the DRO?

2. Do you have to keep receipts for everything you buy during the 1st year?
... I only ask because... what if you go to the cash-point and withdraw £20, then buy food in a supermarket, and lose the receipt? ... will this derail my DRO etc?

3. Do I need to record exact ingoings and outgoings of everything I spend and earn, and keep in some type of Excel spreadsheet during Year 1?

Any help would be really appreciated

Orville

ethan123 wrote: »

Hi there. I am actually looking for some clarification on this (or similar) issue of receipts and records.

I understand that if I go ahead with a DRO, I am not allowed to have excess income of over £50 a month. - Though I do need to ask a few questions about this...

1. Does it matter how much you are earning during the critical 1st year after filing the DRO?

No, what matters is the left over amount after all outgoings. If it's over £50 you don't meet the criteria for the DRO. It does not matter if you earn 5k or 50k.

2. Do you have to keep receipts for everything you buy during the 1st year?
... I only ask because... what if you go to the cash-point and withdraw £20, then buy food in a supermarket, and lose the receipt? ... will this derail my DRO etc?

In a nutshell no. Although to be on the safe side you could, but i was never told to and had no need to.

3. Do I need to record exact ingoings and outgoings of everything I spend and earn, and keep in some type of Excel spreadsheet during Year 1?

Again No, you do this when applying for the DRO. Providing nothing major changes then you should again be fine.

Any help would be really appreciated

Check above........

ethan123

Orville wrote: »

Check above........

Thanks :beer:

Jonj1611

Sorry people, one last piece of advice if possible, I am having no end of trouble trying to get my CCJ marked as satisfied or whatever they mark it as. It was inlcuded in the DRO.

Registry Trust are saying I need to contact Northampton and get it marked as complete, Northampton court are saying its nothing to do with them and I need to contact Registry Trust, does anyone know the actual chain of command here for marking the CCJ as complete?

Thanks

Hampshire345

Hi, I have debts of roughly £5,000 and I am on jsa (under 25), I will be applying for a dro if I can in next few weeks, I was wondering what would be considered acceptable household expenses.

also is only your income taken into consideration? I am slightly confused about the DRO budget as it mentions household income, does this include other people living in your house, I am single and currently live at home.


in the budgetfor a dro would 80-90 a month be ok for groceries

I also have to pay about 40 a month on transport(bus)

I also pay part of the council tax, the bill is not in my name though.

fatbelly

Hampshire345 wrote: »

Hi, I have debts of roughly £5,000 and I am on jsa (under 25), I will be applying for a dro if I can in next few weeks, I was wondering what would be considered acceptable household expenses.

also is only your income taken into consideration? I am slightly confused about the DRO budget as it mentions household income, does this include other people living in your house, I am single and currently live at home.


in the budgetfor a dro would 80-90 a month be ok for groceries

I also have to pay about 40 a month on transport(bus)

I also pay part of the council tax, the bill is not in my name though.

That's all fine. You've probably got a mobile phone. Probably £20 for clothes to add into the housekeeping section.

On your income you shouldn't have problems getting under £50 surplus. It's your income alone that is counted.

What you do have to consider is that if you get a job in the next 12 months, while still living at home, you may breach the £50 limit, and the DRO will show on your credit file for 6 years. It' s worth chatting these things through with your intermediary.

Hampshire345

fatbelly wrote: »

That's all fine. You've probably got a mobile phone. Probably £20 for clothes to add into the housekeeping section.

On your income you shouldn't have problems getting under £50 surplus. It's your income alone that is counted.

What you do have to consider is that if you get a job in the next 12 months, while still living at home, you may breach the £50 limit, and the DRO will show on your credit file for 6 years. It' s worth chatting these things through with your intermediary.

thank you for your advice.

at the moment my credit file is the least of my problems, I know that doing a DRO will destroy my good credit rating but the situation I am in now needs to be resolved, I am only able to pay my creditors each month by getting myself in even more debt

I will contact my local CAB soon and try to get the ball rolling - I want to sort out changing my broadband DD and benefits payments into my new account first.

do you know how long the DRO process can take?

fatbelly

Hampshire345 wrote: »

thank you for your advice.

at the moment my credit file is the least of my problems, I know that doing a DRO will destroy my good credit rating but the situation I am in now needs to be resolved, I am only able to pay my creditors each month by getting myself in even more debt

I will contact my local CAB soon and try to get the ball rolling - I want to sort out changing my broadband DD and benefits payments into my new account first.

do you know how long the DRO process can take?

That all sounds good. AFAIK, the CAB still do the majority of these things, though they lost a lot of their intermediaries when the government pulled the plug on LSC funding for most debt cases (and all benefit work!) a year ago.

The biggest delay may be the queue to see an adviser. Getting a copy of your Experian report can take a few weeks (unless you get one yourself), but the application normally gets accepted in 24 hours when it is eventually submitted.