Debt Relief Orders (DRO) - Information & help thread

madclen

Can anyone advise us on starting work while on a debt relief order.
My son is 6 months into his, I understand it is discharged after 1 year. He has been offered a job but we are not sure how this will affect the dro.
Thanks
M

Godiva500

The DRO is easy and there is no checking after it is awarded - however you are expected to notify the OR if your circumstances change, and if your disposable income rises to more than £50 per month, your DRO is likely to be revoked and you are back to square 1 with all of your debts.

Flowers

Hi,

There are a couple of questions on the last page that no-one is answering regarding DRO and increases income.

Could you please help??

debt_doctor

Flowers wrote: »

Hi,

There are a couple of questions on the last page that no-one is answering regarding DRO and increases income.

Could you please help??

Hi,

If your income / expenditure shows more than £50 pm surplus (remember extra costs with starting work) then the DRO may be revoked or other action taken.

Because DROs are so new there is no insolvency service feedback, case law or anything else, so i'm afraid no one really knows.

DD

Flowers

Thanks!

Who decides if your income / expenditure meet the conditions?

What is the max you can spend on rent, travel,food, ect?

lipglossbutterfly

Just a quick update.
I am now informed i cannot take out a DRO because although I fit the criteria in every other way, I have money taken out of my (small) wage packet for a pension!
So despite being on a very low income and only being in part time employment less than a year (so haven't got a substantial amount built up in the pension, less than £300), because it is on going it will at some point be more than the £300 allowed and of course youre not allowed to stop paying in to it just to qualify for a DRO
Back to square one...

SouthCoast

lipglossbutterfly wrote: »

Just a quick update.
I am now informed i cannot take out a DRO because although I fit the criteria in every other way, I have money taken out of my (small) wage packet for a pension!
So despite being on a very low income and only being in part time employment less than a year (so haven't got a substantial amount built up in the pension, less than £300), because it is on going it will at some point be more than the £300 allowed and of course youre not allowed to stop paying in to it just to qualify for a DRO
Back to square one...

Please write to your MP about the pension issue.

rosered1963

Flowers wrote: »

Thanks!

Who decides if your income / expenditure meet the conditions?

What is the max you can spend on rent, travel,food, ect?

I would love to know the answer to Flower's question too - if anyone can help

Flowers

madclen wrote: »

Can anyone advise us on starting work while on a debt relief order.
My son is 6 months into his, I understand it is discharged after 1 year. He has been offered a job but we are not sure how this will affect the dro.
Thanks
M

I would like to know too please!

Anyone know?

Godiva500

It depends on how many in your family. If you all put up an SOA we can advise you further.

http://makesenseofcards.com/soacalc.html