dro or bankruptcy

glam_jan_56

does anyone know if poss.hubby and myself in debt. me to the sum of 19000 my hubby 12000. what i want to know is would thier be any benefit to just me going for bankruptcy an hubby going for a d.r.o. the fees would not be as much i know that, but we on benefits.would they do this or would it be better to both be bankrupt.now that was a ramble and a half,but hope someone replys. thanks

fiveyearplan

I would think if he is eligible for DRO that would be better than BR.

k2nga

Well there certainly is a difference in costs. The BR will cost you £350 it would normally cost you about £150 on top court costs but you should be able to fill in a form as you are on benefits i have seen about that the DRO will only cost £90 so yes it would be better for him to go down that route if you know for sure that he owes no more than the £15000.

I must admit i have not heard for sure when DRO's are suppose to be starting does anyone know? and is the cap £15,000 for sure?

dalip

Hi Kanga. They are due in force in april from what DD said they are just finalising all the details now and training staff. Yes the cut off point is £15,000.Dx

So_Sad_Angel

dalip wrote: »

Hi Kanga. They are due in force in april from what DD said they are just finalising all the details now and training staff. Yes the cut off point is £15,000.Dx

Just a thought....

Cut off at £15k could be difficult to enforce as `final` debt balances often have interest roll up etc & so if debt is around 15k & exceeds with defaulted payments....will that mean that DRO is still valid or will it tip over to a BR case??

I only say this as I have one creditor that was 13k in June08 & now balance is nearly 15k !!:eek: ( i wouldnt qualify anyway but have a friend in this situation)

Angex

k2nga

Thanks for that Dalip shame they never made it a bit higher my Partners mum could do with it and BR is out of reach for her as she is on benefits and it will take here best part of a year to come up with £350.