DRO Could I get one?

Katie1980_2

Hiya, I am intrested to know wether I would qualify for a DRO, I am on full Employment and support allowance this is being reviewed as I am unable to attempt a return to work at this time. I will post a copy of my SOA I am on Housing and council tax benefit as well and my parents pay the contents insurance but have included it on the SOA
Statement of Affairs and Personal Balance Sheet
Monthly Income Details
Monthly income after tax................ 0
Partners monthly income after tax....... 0
Benefits................................ 620
Other income............................ 0
Total monthly income.................... 620
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 280
Management charge (leasehold property).. 0
Council tax............................. 90
Electricity............................. 50
Gas..................................... 30
Oil..................................... 0
Water rates............................. 20
Telephone (land line)................... 5
Mobile phone............................ 0
TV Licence.............................. 12
Satellite/Cable TV...................... 25
Internet Services....................... 15
Groceries etc. ......................... 50
Clothing................................ 10
Petrol/diesel........................... 0
Road tax................................ 0
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...................... 8
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 30
Haircuts................................ 0
Entertainment........................... 15
Holiday................................. 0
Emergency fund.......................... 15
Total monthly expenses.................. 655

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

No Secured nor Hire Purchase Debts
Unsecured Debts
Description....................Debt......Monthly...APR
RBS............................3000......15........0
Total unsecured debts..........3000......15........-

Monthly Budget Summary
Total monthly income.................... 620
Expenses (including HP & secured debts). 655
Available for debt repayments........... -35
Monthly UNsecured debt repayments....... 15
Amount short for making debt repayments. -50
Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -0
Total Unsecured debt.................... -3,000
Net Assets.............................. -3,000
Created using the SOA calculator at www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission, using IE browser.

I Pay £50 a month on my Virgin media as I am on a pretty good package and because of my health problems I do not like going out an awful lot and prefer to have nights in watching TV and playing games.

Help

So_Sad_Angel

Hi Katie

I would recommend calling one of the debt charities...CCCS/Nat Debtline/CAB

I am sure that RBS would accept 15 as debt repayment on this debt....they were happy to accept alot lower than that from me on a much higher figure (8K) indefinately. In fact they were the most reasonable of my creditors.

Also in your SOA....stuff like the Virgin, your emergency fund, presents, would really mean that in reality there is surplus there to cover the debt repayment. However I am concerned that your food budget is only £50 :eek:
DRO will cost £90 & my understanding is that there is no telling if your creditor would agree...the RBS are usually quite amenable. Please please get advice from the charities.

Hope that made sense...good luck Hun,

Angiexx

elfieb

So_Sad_Angel wrote: »

Hi Katie

I would recommend calling one of the debt charities...CCCS/Nat Debtline/CAB

I am sure that RBS would accept 15 as debt repayment on this debt....they were happy to accept alot lower than that from me on a much higher figure (8K) indefinately. In fact they were the most reasonable of my creditors.

Also in your SOA....stuff like the Virgin, your emergency fund, presents, would really mean that in reality there is surplus there to cover the debt repayment. However I am concerned that your food budget is only £50 :eek:
DRO will cost £90 & my understanding is that there is no telling if your creditor would agree...the RBS are usually quite amenable. Please please get advice from the charities.

Hope that made sense...good luck Hun,

Angiexx

Its not down to a creditor to agree to a DRO. If the OR agrees to the making of a DRO, its tough luck as to whether a creditor agrees or not. The OR has the ultimate in processing an order.

However a creditor does have right to appeal to their inclusion on a DRO, and from your SOA, they may have grounds, esp with the Virgin payment being so high.
I have heard of a few cases where creditors have asked for SOA to justify the making of a DRO.

hayley11

Also the OP is right to include an emergency fund, if he/she went to CCCS, they would assign some of their money to medical/dentist, clothing, haircuts etc. £50 doesn't seem anywhere near enough though for food.

You can find out information about DRO's here. It has the full criteria.

So_Sad_Angel

elfieb wrote: »

Its not down to a creditor to agree to a DRO. If the OR agrees to the making of a DRO, its tough luck as to whether a creditor agrees or not. The OR has the ultimate in processing an order.

However a creditor does have right to appeal to their inclusion on a DRO, and from your SOA, they may have grounds, esp with the Virgin payment being so high.
I have heard of a few cases where creditors have asked for SOA to justify the making of a DRO.

I am suggesting that the Advisor to the DRO will agree that there is adequate means to sustain repayment plan to which the RBS is likely to agree..... thus rendering a DRO unnecessary....IMO.

I would doubt this case would get to the OR stage.

Angel

debtinfo

It doesnt matter if there is enough income to sustain a repayment plan all that matters is that you meet the criteria for a DRO, The limiting factor in this case is the £50pm surplus factor. As So Sad Angel said those items would not be considered as essential expenditure BUT as hayley says you should account for all the expenditure you are likly to have over the next year. I believe that if all your expenditure was accounted for you would have no surplus and would therefore be elligable for a BRO, If you want to go down the DRO route you need to speak to a nominee.

If you wish to do the DMP yu should work out how much you can pay and then see how long it would take. DMP's are meant to be a short term measure, for instance if you believe you will be able to go back to full time employment. If you couldn't £15pm would take nearly 17 years to pay off (that's providing they agree to stop interest which is not a legal requirement). A DRO would stay on your record for 6 years.

At the end of the day you must make the decision yourself as to what to do

debt_doctor

Hi,

Yes you can get a DRO with that income / expenditure. Your £50 pm to Virgin media would be allowed (and more) under 'other' expenditure category. Iwould place birthdays and emergencies in to food (housekeeping).

Info to us so far from the IS is that no DRO has been refused from creditor objection, and I know that no creditor could object to the entertainment package you suggest.

DD

debtinfo

Hi debt doctor, the following is an excerpt from the insolvency website.

31.7.33 Expenditureitems which should NOT be allowed
The following provides a general list of expenditure items which should not be included when making an IPA/IPO calculation, unless the bankrupt can prove there are extenuating circumstances:

• Gym membership
• Sports expenses or club membership
• Additional pension contributions to enhance a pension
• Private healthcare insurance or similar (however see also paragraph 31.7.21
• Social and entertainment expenses- see paragraph 31.7.34
• Satellite TV - see paragraph 31.7.35
• Broadband internet costs (unless shown to be necessary for the bankrupt's paid employment) - see paragraph 31.7.35
• Excessive mortgage payments - see paragraph 31.7.36
• Student Loans - see paragraph 31.7.37
• Regular payments to charitable and religious organizations/tithing - see paragraph 31.7.38

debt_doctor

Yes indeed it is, but this is off the technical manual and applies to bankruptcy and IPA's.

DRO expenditure allowances are entirely different and are soley based on the common financial statement and allowances based under 'essentials' 'telephone' 'travel' housekeeping' and 'other'.

The last 4 categories have financial limits attached to them dependant upon the size of the family. ( my licence with the money advice trust does not allow me to post those limits, sorry.)

In the last category it allows such things as ; satalite tv, outings to pub, gym, hobbies, smoking, lottery and internet and more.

DD

fermi

Possibly helpful figures...........

debt_doctor

:whistle::whistle::whistle: