Debt Relief Order - Help Please

mbsoft

I suggested to my daughter that she look at a DRO as she is on income support with 2 children. She has just had a call with national debt helpline and gone through all the figures of debt income and expenditure.

All figures provided were not a problem except when it came to the car expenses.

I allow my daughter to use my car and she pays for Insurance, Petrol for herself which we qoutes correct figures of £60 per month car insurance, and £16 per week petrol.

She has £31 per month remaining based on figures provided. But National Debt helpline are stating that they can put the dro through and are sending my daughter the paperwork etc. But informed her that the Insolvency Service may reject the DRO and she would lose the £90.

She now thinks it is not worthing doing as she is going to have to find £10 per week for the DRO anyway.

My quaestion really is how can this be, she doesnt own the car its mine I pay for MOT, Repairs, Breakdown cover, road tax, and my own insurance as I drive the car as well. Car is approx £2000 but as said it is mine she uses it.

Any thoughts and advice please

D

PlasticPennies

mbsoft wrote: »

I suggested to my daughter that she look at a DRO as she is on income support with 2 children. She has just had a call with national debt helpline and gone through all the figures of debt income and expenditure.

All figures provided were not a problem except when it came to the car expenses.

I allow my daughter to use my car and she pays for Insurance, Petrol for herself which we qoutes correct figures of £60 per month car insurance, and £16 per week petrol.

She has £31 per month remaining based on figures provided. But National Debt helpline are stating that they can put the dro through and are sending my daughter the paperwork etc. But informed her that the Insolvency Service may reject the DRO and she would lose the £90.

She now thinks it is not worthing doing as she is going to have to find £10 per week for the DRO anyway.

My quaestion really is how can this be, she doesnt own the car its mine I pay for MOT, Repairs, Breakdown cover, road tax, and my own insurance as I drive the car as well. Car is approx £2000 but as said it is mine she uses it.

Any thoughts and advice please

D

National Debtline have to advise everyone that their application may be rejected, they cannot guarantee that anyone will get a DRO. They are just covering themselves, basically.

I can't guarantee anything either, but what I'm telling my clients, based on the training I've had and the discussions I've had with other debt advisers is that anyone on income support is highly unlikely to fail because of income/expenditure.