DRO? Is it a possibility?

jamesb1239

Hi, I wonder if any of you well informed people on her may be able to help. My partner and I both have debts mine are approximately £4000 and hers approximately £6000 her depts are mainly from a previous relationship and I am not named on anything to do with them, and likewise mine are just in my name.

Our sole income at the moment is benefits (Child Benefit, Child Tax Credit, Council Tax Credit, Housing Benefit & Income Based JSA) since I lost my job at the beginning of this year. For some time prior to this these debts have been spiralling out of control (mostly through the foolish assumption that they will go away!!!) also we have 1 dependant child if that makes any difference for anything?

One of my questions is that obviously a SOA will have to be completed for both of us if we were to go down the DRO route but would that be completed with all of the benefits (only money coming in) exactly the same for both of us or do we need to divide it by 2 and put the other half of them in partners income and likewise with the household expenses etc?

I have read elsewhere that the £50 surplus income is after paying essential household expenses, but could somebody clarify what these are? Are things like broadband, mobile phone, landline, sky tv, car tax & insurance included in normal household expenses?

Also I have a contract with t-mobile which also has handsets on it for other family members who pay me their share of the line rental each month and a handset for my partner and I, would this have to be included as a debt or would we have to show proof of the bill and proof of people paying us for their share? or would it just be better to get rid of it (stop paying and add it as a debt.... i feel so bad saying that).

We currently have a joint current account, am I correct to understand that after a DRO this would be taken away?

We dont have much in the form of assets, a battered old computer & laptop (worth probably £100!) and a flatscreen tv (probably worht the same) the cars value is also way under the £1000 mark that I have seen for DSO.

Also would we have to complete 2 seperate DSO's or can they be done jointly?

Thank you all for your time and help, it feels like a great load has been lifted finally coming to terms with it all and trying to seek help. Hopefully I can get us out of this big black hole and the contand torment of creditors & bailiff threats.

dalip

To be honest not many of us know the answers to your questions. Your best bet would be to PM DebtDoctor. He "knows"all the answers;).Dx

jamesb1239

Bump!

PlasticPennies

You can't apply for a DRO jointly, you need to fill out an application each (and pay £90 each).

When you fill out your form, it should be YOUR income (either the benefits that are paid in your name, or 50% of your total benefits, your intermediary will advise you on which)

For expenditure, you need to fill out YOUR expenditure, so this will be a proprtion of your total household expenditure.

As for what is essential expenditure, be difficult to get SKY tv in there (unless it's a very cheap package you have). If you have an expensive package, might be best just to include the amount still owing under your contract as a debt and have it wiped out.

As for mobile phones, should be okay so long as it isn't excessive, but again, you have the option of including the rest of your contract as a debt and wiping it out.

Car insurance and tax will be an allowable expense.

jamesb1239

PlasticPennies wrote: »

You can't apply for a DRO jointly, you need to fill out an application each (and pay £90 each).

When you fill out your form, it should be YOUR income (either the benefits that are paid in your name, or 50% of your total benefits, your intermediary will advise you on which)

For expenditure, you need to fill out YOUR expenditure, so this will be a proprtion of your total household expenditure.

As for what is essential expenditure, be difficult to get SKY tv in there (unless it's a very cheap package you have). If you have an expensive package, might be best just to include the amount still owing under your contract as a debt and have it wiped out.

As for mobile phones, should be okay so long as it isn't excessive, but again, you have the option of including the rest of your contract as a debt and wiping it out.

Car insurance and tax will be an allowable expense.

Wow that makes my SOA look worse, all benefits are paid to my partner other than housing benefit and council tax benefit, the JSA is a joint claim.. And the majority of the bills are in my name

PlasticPennies

jamesb1239 wrote: »

Wow that makes my SOA look worse, all benefits are paid to my partner other than housing benefit and council tax benefit, the JSA is a joint claim.. And the majority of the bills are in my name

Doesn't matter whose name the bills are in (if you mean ongoing expenses like council tax, utilities etc) what matters is who pays them.

Whether you want to do your income and expenditure as a proportion of your joint income/expenditure, or if you actually want to state what benefits are paid to you and what expenses you personally pay for doesn't matter. There are different ways of doing the same thing, so long as it is consistent between your application and your partner's application, I would have no problem submitting it as an intermediary.

jamesb1239

PlasticPennies wrote: »

Doesn't matter whose name the bills are in (if you mean ongoing expenses like council tax, utilities etc) what matters is who pays them.

Whether you want to do your income and expenditure as a proportion of your joint income/expenditure, or if you actually want to state what benefits are paid to you and what expenses you personally pay for doesn't matter. There are different ways of doing the same thing, so long as it is consistent between your application and your partner's application, I would have no problem submitting it as an intermediary.

Thank you for all of your help so far. Also another quickie as i have read elsewhere that similar rules apply to a DRO as bankruptcy. My mobile phone contract that i currently have could i request early termination and then receive the bill for that and then class it as an unsecured debt within the DRO and have it written off within that? also can you do it with sky tv too?

I have realised that i need to get rid of these things for our clean break and then avoid credit completely! I can honestly say i have learned my lesson.

PlasticPennies

The answer is yes to both those questions, james.

I'd also say, it's important to be accurate and honest with your income/expenditure, but if your only income is benefits, you are almost certainly not going to encounter any problems with surplus income, or justifying expenses or anything like that.

When an adviser sits down and goes through your financial statement with you, f your only income is benefits, it will become clear very quickly that you have less than £50 a month left over once living expenses are taken into account. Welfare benefits are not designed to give you much surplus income!

jamesb1239

PlasticPennies wrote: »

The answer is yes to both those questions, james.

I'd also say, it's important to be accurate and honest with your income/expenditure, but if your only income is benefits, you are almost certainly not going to encounter any problems with surplus income, or justifying expenses or anything like that.

When an adviser sits down and goes through your financial statement with you, f your only income is benefits, it will become clear very quickly that you have less than £50 a month left over once living expenses are taken into account. Welfare benefits are not designed to give you much surplus income!

Thanks you have been a great help, Without having to pay mine & OH's contracts we could cover the £90 each fairly well, at what point do we stop trying to pay creditors? a few dca's that i have spoken to have agreed to put accounts on hold which is nice of them lol.

jamesb1239

Another quick one, when working out what i owe and to who do i class the creditor as the original company or the DCA?

Thanks again