23 and 23,000 in debt!

pinkladymel

Hi all,
My friend (Who is sat beside me!) is going out of her mind with worry because she can't work out the best solution for her situation. I don't know anything about debt relief orders and all that but I know you guys could help, so please.. help me help my friend before she goes out of her mind!
She has debts with her partner of over 20,000 pounds and the CAB have advised that she goes with a DRO.
Her problem is that she has a toddler, a baby due in June and they look after her partners 8 year old son on the weekends.. but live in a one bedroomed flat. There's a long story about how she got in this situation but we all make silly mistakes and she loves her children with everything she is.. so please don't judge too harshly.
If she files for the DRO, one of the places she owes a load of arrears to is the Housing Association. The council have her on the top of their waiting list but they can't give her a house whilst she has arrears. She can't afford to pay the arrears at all. As soon as they find out they're on the DRO they will evict her and then she will be homeless and have to find somewhere to put her furniture.
We're trying to brainstorm ideas but it seems she is stuck really.. She needs to file for the DRO but if she does she'll be evicted with no property to move into. If she goes to rent private, she has hardly any money as it is and it will take her right off the council housing list so she will lose her position.
I don't know what to say to her.
She's made her mistakes and now she wants to put the mess right. I guess we was all young and stupid once!!

Tixy

Hi

How much of the £20k debts are hers? As a DRO is only suitable for people who have less than £15k of debt.

Regarding the housing it might be worth seeking some advice from Shelter who may be able to suggest some ideas and some information on her rights.

If she were to concentrate on just paying back the rent arrears and paid every other debt just £1 per month could she start to make a dent in the arreas? How long would it likely take her to repay them?

Does she and her OH work?
Are they getting all the benefits they are entitled to?

pinkladymel

hello
this is her friend, i was goin to do a dro in each of our names. ive spoken to shelter who have been able to give the same advice as i already know, but the accomodation is unsuitable.
if i do a dro with my rent arrears will my landlord be able to evict me and will i be able to ask at court for more time to find somewhere to live?

i am claiming income support on the grounds of incapacity with my partner, we recieve a premium for over 52 weeks of claiming, child tax credit and child benefit, full housing and concil tax benefit. i have put in a claim for dla and following that i will try to claim careers allowance.

Tixy

Hi

This is quite a specialist area of advice - you might be better off posting the questions again on the bankruptcy board here on MSE. There may be people there who have experienced similar problems.

(sorry can't offer more advice).