Considering DRO, need some advise

helou_2

Hi there, I'm 29, single, unemployed (JSA for more than a year now), living with parents now (not by choice sadly) with ~ £8000 unsecured debt. I have <£300 of assets and a motorcycle I use for transport that has a Parker's Used Poor Condition vaule of £800 but I would say its worth about £1000.

Here's my SOA:

Statement of Affairs and Personal Balance Sheet

Monthly Income Details
Monthly income after tax................ 0
Partners monthly income after tax....... 0
Benefits................................ 256
Other income............................ 0
Total monthly income.................... 256

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 100
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 10
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 0
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 80
Clothing................................ 5
Petrol/diesel........................... 15
Road tax................................ 1.25
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 5
Haircuts................................ 5
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 221.25


Assets
Cash.................................... 100
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 1000
Other assets............................ 0
Total Assets............................ 1100

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
Bank Overdraft.................1500......15........10
Credit Card....................2000......64........14.9
Personal Loan..................4500......150.......9
Total unsecured debts..........8000......229.......-


Monthly Budget Summary
Total monthly income.................... 256
Expenses (including HP & secured debts). 221.25
Available for debt repayments........... 34.75
Monthly UNsecured debt repayments....... 229
Amount short for making debt repayments. -194.25

Personal Balance Sheet Summary
Total assets (things you own)........... 1,100
Total HP & Secured debt................. -0
Total Unsecured debt.................... -8,000
Net Assets.............................. -6,900

The only concerns I have at the moment is:

1. If I become insolvent will that have any effect (official or unofficial) on my parents ability to obtain credit or get a preferential rate, as I am living at their post code. They are concerned about that!

2. My bike was bought on a credit card, paid in full, in 2008 and the Parker's guide says it is valued at £1500 GOOD condition, but its in poor condition now thanks to being used daily for work and transport everywhere and living outside. How is condition/value determined? I do not want to contemplate a DRO if I lose my only transport - I'd go insane. My ability to seek and commute to a place of work would be greatly effected too.

Based on these rough figures would I be accepted?

Many thanks!

I have £256 a month coming in and £214 going out on unsecured debt repayments before I even think about rent and food. I am in rent arrears for almost a year and am struggling to even afford to eat properly. Almost entirely dependant on charity at the moment.

I am really worried about being cheated by loop holes as well. Selling of debt and DCA. I also have 18k of unpaid student loans, but I have never made a repayment on those anf I understand they are excempt anyway - typical.

skylight

Unless you are linked to your parents through a joint account/credit etc then they will not be affected - black listing of addresses is a myth.

However, I am questioning your suitability for a DRO - you have a bike that you own and its value takes you over the assets value allowed for a DRO, so have you looked at BR?

Are all your student loans SLC ones? Bank overdrafts/loans ones can be included. You could always get yourself a part time job anywhere - as then you can justify keeping the bike then (you increase your rent to your parents too etc); as your bike is likely to go to service your debts as you are not employed.

maxmycardagain

Your debts will be wiped in BR, so the final figures change

Unsecured Debts
Description....................Debt......Monthly.. .APR
Bank Overdraft.................1500......15........10
Credit Card....................2000......64........14.9
Personal Loan..................0000......000.......9
Total unsecured debts..........0000......000.......-


Monthly Budget Summary
Total monthly income.................... 256
Expenses (including HP & secured debts). NO DEBTS
Available for debt repayments........... ADJUST
Monthly UNsecured debt repayments....... NIL
Amount short for making debt repayments. ADJUST

do again

Godiva500

OR takes parkers valuations - if its poor condition as you say then its value is £800, so should be under the £1000 allowed and safe.

helou_2

Godiva500 wrote: »

OR takes parkers valuations - if its poor condition as you say then its value is £800, so should be under the £1000 allowed and safe.

Will they send someone round to look at it? My idea of poor might not tally with theirs.
I'm not trying to pull anything here, but I just want to be sure of keeping it.

Thanks for the info btw.

helou_2

maxmycardagain wrote: »

Your debts will be wiped in BR, so the final figures change



do again

Sorry, I have no idea what you are talking about.

helou_2

skylight wrote: »

Unless you are linked to your parents through a joint account/credit etc then they will not be affected - black listing of addresses is a myth.

However, I am questioning your suitability for a DRO - you have a bike that you own and its value takes you over the assets value allowed for a DRO, so have you looked at BR?

Are all your student loans SLC ones? Bank overdrafts/loans ones can be included. You could always get yourself a part time job anywhere - as then you can justify keeping the bike then (you increase your rent to your parents too etc); as your bike is likely to go to service your debts as you are not employed.

I don't have £450 and am not likely to have it in the near future sadly. Thanks for the job advise, does voluntary work count? As if I could get a job, I wouldn't be considering insolvency.

debt_doctor

Hi,

Your DRO intermediary has to accept YOUR opinion of whether your vehicle is in 'poor' or 'good' condition. If Parkers say that value is below £1000 you will be fine.

No one comes round to look at the vehicle.

DD