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Debt Relief Orders (DRO) - Information & help thread

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  • JonVarnas
    JonVarnas Posts: 252 Forumite
    Seventh Anniversary 100 Posts Photogenic Name Dropper
    Shame the surplus income is only £75. I thought it was going to be £100.
  • fatbelly
    fatbelly Posts: 22,945 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Cashback Cashier
    So did we. They changed it last-minute.
  • I am trying to help my son sort out his debt.  He was advised over a year ago by Stepchange to apply for DRO.  He has suffered with his mental health and dealing with debt has been put off.

    He has debts of £14,000 on store cards, credit cards and bank loans.

    He also has a car on finance with £5,000 left to pay which comes to an end in July ( he doesn’t have £5,000 to pay it off, but if he gives the car back he will owe more due to mileage and the cars condition)

    He does need a car to carry on working, as he is a kitchen designer and goes out to do surveys.

    Any advise appreciated.


  • fatbelly
    fatbelly Posts: 22,945 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Cashback Cashier
    A DRO will still be there for him once he gets the car situation sorted.

    You can see the new criteria from 29 June a few posts back. It sounds like his total debt is £19000 which is well within the new limits and if he can get a banger to run, it can be worth up to £2000 and the scheme still works.


  • My wife has debts of around £18k and is looking to apply for a DRO. What documents will they ask for other than a list of debts and income/expenditure workings?

    Also will it have any affect on myself as I own the property we live in? My wife lives here but is not an owner or on the mortgage.
  • JonVarnas
    JonVarnas Posts: 252 Forumite
    Seventh Anniversary 100 Posts Photogenic Name Dropper
    My wife has debts of around £18k and is looking to apply for a DRO. What documents will they ask for other than a list of debts and income/expenditure workings?

    Also will it have any affect on myself as I own the property we live in? My wife lives here but is not an owner or on the mortgage.
    When I applied for mine I didn't have to provide any documents whatsoever. I just listed my debts, they did a credit check and that was it.

  • fatbelly
    fatbelly Posts: 22,945 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Cashback Cashier
    My wife has debts of around £18k and is looking to apply for a DRO. What documents will they ask for other than a list of debts and income/expenditure workings?

    Also will it have any affect on myself as I own the property we live in? My wife lives here but is not an owner or on the mortgage.
    It shouldn't have an effect but we went through a phase a couple of years back about advisers getting terrified by a thing called beneficial interest. The Insolvency Service issued guidance that is not particularly helpful:

    Where a debtor’s circumstances suggest they may have a beneficial interest in any property the AI must take reasonable steps to understand the position and determine whether the debtor meets the criteria for a DRO. 
     
    Below is a list of questions used by examiners in the Insolvency Service to establish a possible beneficial interest in bankruptcy cases. You may find these questions useful as a basis for your own enquiries:
     
    ●       Do you own or have you ever been the owner of a property?
    ●       Have you transferred a property to a third party, e.g. spouse, civil partner or other associate?
    ●       Are you married to the registered proprietor?
    ●       If so, how long have you lived at the property?
    ●       Did you pay a deposit when purchasing the property?
    ●       Are you shown on the mortgage or on any subsequent charges?
    ●       What mortgage payments have you made and for how long?
    ●       Have you ever claimed to own a property when applying for credit?
    ●       Do you consider you have a beneficial interest in the property?
    ●       If not, why not?
    ●       Have you funded an extension or remedial works to the property?


  • Thanks for your responses. Do they elaborate as to what a beneficial interest in the property means/includes?
  • fatbelly
    fatbelly Posts: 22,945 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Cashback Cashier
    Thanks for your responses. Do they elaborate as to what a beneficial interest in the property means/includes?
    Each case judged on its merits - bit OTT if you ask me. In bankruptcy 'interest follows title'

    So if she's not on the deeds, she has no interest.
  • michellew_2
    michellew_2 Posts: 1,298 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    Hi is a joint DRO possible or is it just in one persons name,  if only in one name does that mean all bills are halved when filling out the forms?
    thanks
    Happy with any wins this year :A
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