Debt Relief Orders (DRO) - Information & help thread

chickadee2014

Thank you. Who are the best people to speak to about a DRO?

chickadee2014

Sorry me again been doing some more research. I pay the minimum each month of my debts which doesn't leave me with any disposable income. But if these debts are taken away I'd have a lot of disposable income as partner pays mortgage/bills. Would I still be accepted do you think?

fatbelly

chickadee2014 wrote: »

Thank you. Who are the best people to speak to about a DRO?

Speak to Stepchange or CAB

chickadee2014 wrote: »

Sorry me again been doing some more research. I pay the minimum each month of my debts which doesn't leave me with any disposable income. But if these debts are taken away I'd have a lot of disposable income as partner pays mortgage/bills. Would I still be accepted do you think?

Speak to Stepchange or CAB

Do you own your property jointly with your partner? That would disqualify you from a DRO.

chickadee2014

No he owns it. All I have is a car to my name. Thanks for your help

fatbelly

Based on what you have told us you would not qualify for a DRO but would be suited to a dmp over 3-5 years.

Rabbitx

Hi,
I have been advised by the Money Advice Service that a Debt Relief Order would be most suited, but have questions before I commit myself.
I've been on ESA for severe depression for 6 months, and debts have spiralled in that time. A DRO will be very helpful health wise, but I want to balance this with regaining confidence/ a feeling of bouncing back.
I was self employed for 3 years, and would like to return to this...I have registered with the Business National Debt Line, to get advice about whether this is feasible under a personal DRO.
If, as I hope it does, my income increases, at what point could it nullify a DRO? : is there a break off point. If I apply, and then get a £17k job for example, will I have wasted my time? I intend to take up employment as well as being self employed, and to set up 2 basic accounts with different banks...Barclays and Virgin.
On top of personal living expenses, once the DRO is calculated, is everything taken to pay debts, or do they allow a weekly or monthly margin of error?
My income, if I am able to continue, is likely to fluctuate. How do I manage this without defaulting on the DRO?
I am single, with no dependants, in privately rented accommodation, with a section 21 notice hanging over me, an in debt to the hilt.
I also worry because I owe money to friends who have helped me out over this period. Can I include repaying them in my budget? They might not be too happy if I tell them I can't because of the DRO, and I certainly don't want to let them down. They are a priority too!
Thankyou for reading.

fatbelly

Rabbitx wrote: »

Hi,
1. If, as I hope it does, my income increases, at what point could it nullify a DRO?

2. On top of personal living expenses, once the DRO is calculated, is everything taken to pay debts, or do they allow a weekly or monthly margin of error?

3. I am single, with no dependants, in privately rented accommodation, with a section 21 notice hanging over me, an in debt to the hilt.

4. I also worry because I owe money to friends who have helped me out over this period. Can I include repaying them in my budget?

I've distilled your post into 4 questions.

1. At the point your surplus income exceeds £50 per month the DRO can be revoked.

2. Payments to debts are not an allowable expense due to the fact (with one exception, see below) you are not allowed to make payments to your debts during the moratorium, and your creditors are not allowed to demand payment.

3. Rent arrears on your present tenancy is the one debt to which you are allowed to make payment, out of your max £50 per month surplus. If your s21 has been issued because of rent arrears then it may help your landlord to know that if he allows you to stay he can receive payment against the arrears but if he evicts you then the whole amount will be made unenforceable by the DRO.

4. Your friends must be listed as creditors and you will not be allowed to make any payment to them.

Come back if any of that's not clear.

Rabbitx

Thank you....plenty to think about!
Rabbitx

Rabbitx

With a debt management plan, would the same conditions apply?

sourcrates

Rabbitx wrote: »

With a debt management plan, would the same conditions apply?

No, it's unregulated, there are no"official" conditions or regulations in a DMP.