Debt Relief Orders (DRO) - Information & help thread

sourcrates

You only need report anything if your disposable income goes above £75 a month.

Otherwise, sit back, relax, get on with your life, and in 12 months it will all be over.

Ideally you do not want to be contacting anyone about anything, just let your arrangement run, don`t overthink things.

Jonnybravo55

Well, its too late now. Already sent them an email about the situation. Hopefuly that wont change anything.

Now few questions in regards to managing my finance during the moratorium period.

If I received the letter dated 10th of July does it mean my monthly finances will
be calculated from 10th to 10th?

Am I allowed to withdraw any cash? Some places, such as barbers don't accept cards.

fatbelly

No problem with using cash. 

I don't think 'month' is that tightly defined. Pick a start and end date that makes sense - contains one wage payment, one council tax payment etc

When you say you've emailed 'them' - is that stepchange or the Insolvency Service?

Jonnybravo55

I emailed insolvency service

Jonnybravo55

Will there be a problem for them if I withdraw 400 pounds at a cash mashine for grocery from my account at once? Its easier to stay within my food budged this way 

fatbelly

Absolutely no problem. Cash in the bank is an asset. Cash in your hand is an asset. 

It's only a problem if you have over 2k of assets

Jonnybravo55

Next question. I might need to let one of my bedrooms to someone to avoid having rent arrears as my income is lower than my total expenditure. Am I allowed to do so and do I have to inform them? 

fatbelly

The DRO will have no impact on that. I guess you should inform your landlord or at least check your tenancy agreement.

As far as the income goes, that will be offset by higher fuel/water costs and loss of your single adult discount on your council tax (you do have to tell them!)

The limit in a DRO is £75 net surplus per month.

Comet91

Hi,
I had my DRO approved on the 1st March. Since then my rent has been increased by £120 😭😭 My job was able to provide me with an extra 3 hours a week to help towards it. Obviously my income is now higher but with the rent increase and and my council tax benefit reducing because of the higher wage I am still way under the £75 disposable income threshold. I just want to check if I need to inform the insolvency agency about my wages increasing as I am still under the threshold limit?

Thank you x

fatbelly

Technically, yes. I think the Debtor's Notice that you were sent says you should. In pracice it seems few people report insignificant changes