Debt Relief Orders (DRO) - Information & help thread

DourPower

Thanks again FB. selling the shed (well, four walls, the stone roof is caved in) is something i've been putting off because it's like a millstone and makes me depressed, really it never enters our thoughts. But at some time I was going to have to do it, maybe now is the time. It seems like a daunting task because of language and distance and a kafkaesque bureaucracy, I'll probably have to go there multiple times... actually perhaps I really had better bite the bullet and do it while I've still got a card active...

BDL didn't know about it, my wife only remembered about it this evening and will ask them about it tomorrow.

The shed came long before she married me and is in my name - so does it not go all "what's mine is yours" and all that? glad to hear not!

Norfolkgal

Hi I can’t get the gov link in the first post to work, I have a massive water bill debt and British Gas gas debt and other smaller debts I’m a single mum and I feel like I’m drowning I’m working but is a zero hours contract and although the people I work for are amazing (signed a secrets act so only so much I can about that) however I feel like I’m letting them down and think they are getting fed up of it as I have childcare problems my family promised they would help etc when I first started but three years on it’s a big hassle for them I have been doing 16hours a week but I had my appendix out last month and since then they don’t really need me in although they will do over Christmas but only if they can rely on me meaning if my family can have the kids for those few hours. Will me leaving or losing my job effect applying for a debt relief plan?

fatbelly

Norfolkgal wrote: »

Hi I can’t get the gov link in the first post to work, I have a massive water bill debt and British Gas gas debt and other smaller debts I’m a single mum and I feel like I’m drowning I’m working but is a zero hours contract and although the people I work for are amazing (signed a secrets act so only so much I can about that) however I feel like I’m letting them down and think they are getting fed up of it as I have childcare problems my family promised they would help etc when I first started but three years on it’s a big hassle for them I have been doing 16hours a week but I had my appendix out last month and since then they don’t really need me in although they will do over Christmas but only if they can rely on me meaning if my family can have the kids for those few hours. Will me leaving or losing my job effect applying for a debt relief plan?

I'm not 100% sure I've understood the question but it is best to wait until things stabilize before doing a DRO. You can only do one every six years and if you're likely to get some work during the 12 months that will take you over the £50 threshold then you could lose it.

Maybe do a statement of affairs and post it on the main dfw board?

[Deleted User]

Hello,

My current debts are at £19,000 (excluding car on HP) they will also go up due to interest and charges.

I have a car worth £6000 on HP which I need to get the children to school (6 miles way from home). I also need it for my self-employed work to visit clients when necessary.

If the car is included I cannot do a DRO. I read the notes and it states if I have no arrears and the car is worth £1000 then I can keep the car but it will not be an allowable expense?

Does anyone know what that actually means?

fatbelly

nicci985 wrote: »

Hello,

My current debts are at £19,000 (excluding car on HP) they will also go up due to interest and charges.

I have a car worth £6000 on HP which I need to get the children to school (6 miles way from home). I also need it for my self-employed work to visit clients when necessary.

If the car is included I cannot do a DRO. I read the notes and it states if I have no arrears and the car is worth £1000 then I can keep the car but it will not be an allowable expense?

Does anyone know what that actually means?

Yes. Although the HP agreement will show as a debt on your credit report, if there are no arrears then you have the option of (1) including it, (2) not including it.

If you choose (2) then it will not be covered by the DRO should you later get into arrears with it. As the car is currently worth more than 1k, you will not be allowed to include the monthly payment in your expenses when calculating your surplus income. In practice if you wish to keep the agreement going then a third party (maybe partner or family member) would have to make the payments.

Another complication is that, if the HP completes during the 12-month moratorium, then the car becomes your asset and may cause the DRO to be revoked, depending on its value at that time.

blotter12

Hi
Could anyone tell me if it would be ok to lend £5000 from a family member to enable me get under the £20,000 debt threshold in order to qualify for a DRO.
The £5000 would be spread across all creditors to reduce the debts so as not to favour only one creditor and the £5000 would not be included in the DRO

fatbelly

blotter12 wrote: »

Hi
Could anyone tell me if it would be ok to lend £5000 from a family member to enable me get under the £20,000 debt threshold in order to qualify for a DRO.
The £5000 would be spread across all creditors to reduce the debts so as not to favour only one creditor and the £5000 would not be included in the DRO

It would be fine for a family member to give you £5000 to enable you to get under the £20,000 debt threshold in order to qualify for a DRO as long as you spread payments pro-rata across all creditors so as not to favour only one creditor.

It would be cheaper for the family member to give you £680 for your bankruptcy fee. In a DRO it would be easier for the family member to pay creditor(s) direct as a third party cannot make a preference.

If the family member lends you money then this must be listed as a debt in either insolvency solution. It would be included as a debt in a DRO

blotter12

Thanks for quick reply fat belly , so just to clarify, if this family member were to pay just one of my creditors the £5000 direct that would be ok and this would not be included as a debt in a DRO

blotter12

Hi could anyone confirm if my above post would be correct (ie that the £5000 could be paid to one creditor by a family member to ensure I could get a DRO ) and that this would not be considered as an additional debt. Thank you

fatbelly

blotter12 wrote: »

Hi could anyone confirm if my above post would be correct (ie that the £5000 could be paid to one creditor by a family member to ensure I could get a DRO ) and that this would not be considered as an additional debt. Thank you

Why would a payment be a debt?

It's only a debt if the lender requires repayment.

Edit: Having said that it's a bit of a waste of 5k - they could give £680 to your bankruptcy and £4320 to a charity of their choice