Debt Relief Orders (DRO) - Information & help thread

fatbelly

davetherave85 said:

My wife is looking to go down the DRO route. However, I own the property(with mortgage) so will she still be eligible?

In terms of her expenses she just pays me minimal amounts towards bills however her work has gone down to part time so her income has dropped hence she cannot pay her CC bills.

Do they ask for bank statements when applying for DRO's?

Yes but post again if your intermediary starts wittering about beneficial interest.

Yes they will probably ask for her bank statements

davetherave85

If her work stops completely and she has nothing to pay me for bills then there will be no beneficial interest anyway? Thanks 

fatbelly

Beneficial interest is a concept where a non-owner acquires an interest in a property due to contributing to mortgage and household costs over a long period.

Ultimately only a court can determine whether there is (and how much) a beneficial interest and this is often done as part of divorce proceedings.

Unfortunately some intermediaries think they are smarter than the courts, encouraged by the following guidance

Where a debtor’s circumstances suggest they may have a beneficial interest in any property, the approved intermediary must take reasonable steps to understand the position and determine whether the debtor meets the criteria for a DRO.

Pa1rick67

Hi,

I've sent all the required documents for a DRO to StepChange via e-mail 4 weeks ago and to this day I have not received any kind of answer. Is that normal? 

Thank you 

sourcrates

Pa1rick67 said:

Hi,

I've sent all the required documents for a DRO to StepChange via e-mail 4 weeks ago and to this day I have not received any kind of answer. Is that normal? 

Thank you 

Pick up the phone if your concerned, or use private messaging.

davetherave85

My wife done the income and expenditure on Step Change and her deficit was around £200 and it comes up with that it does not recommend a DRO because: You don't have enough money left over in your budget.

Can it get refused if expenses are too high or if no money is left over at all? The expenses are not high at all - there is a deficit as she lost her job.

fatbelly

Ideally the situation should be stable before entering a DRO because you won't be able to borrow money during the moratorium.

But the blunt answer to your question is no. Minus £200 is less than £75, so she qualifies.

She needs to talk to a human being rather than stepchange's website

CK1223

My debt relief order was finally submitted on Monday! 🥳
Now just to wait the (up to) 10 working days to see if it's been approved!

Just wanted to say a huge thank you to everyone who posts on this forum, particularly fatbelly and sourcrates. Your wealth of knowledge has been absolutely invaluable to me and has really helped me get my head around sorting the DRO.

fatbelly

The bank holiday will slow things down but  I would have thought Monday at the latest

missnosey122

DEBT RELIEF ORDERS and IVA 

Just a little friendly advice fm someone who fell foul of the inheritance windfall
and was taken to court because I only realised several days after the moratorium period had ended. The Insolvency Service and the courts were really good but still the shame I felt at the time was horrendous 

It is your responsibility to inform the Insolvency Service of an inheritance as soon as you are aware you are getting one not when you receive it. If its under 2k its likely nothing will happen, if over your agreement maybe revoked.

Don't ignore the problem thinking it will go away because the executor or administrator of the estate is required to check the Insolvency register. For an IVA the money has to be sent to the provider to use the money to pay all the debts & their fees first any left over goes to the beneficiary.  

'Good luck you're on your way to getting debt free taking the first step is the hardest but when it's over the ability to take control of your life again is a great relief, I know I've been there'