Been/going through a Debt Relief Order?

AndersM

Hi, newbie here so be gentle!

I've currently booked an appointment with the CAB to dgetting a DRO. I have debts of £8000-9000 with 5-6 creditors. I have a permanent job that starts in around 4 weeks as I am waiting for a Criminal records check to go through. I will only be on £1200 a year and after a six month period of unemployment I am back living with my parents.

So my question is to those in the know is this..as I am living with my parents my surplus income will be more than £50 per month (not including paying my debts) but I still wouldn't be able to pay minimum payments. Also my parents want me out of the house when i start getting paid so I will need to rent and in that scenario I will be under the requirement for the surplus income.

How does the surplus income criteria work? does it include your propsed minimum payments or just your other living expenses ie bills, food, travel costs to work etc?

sorry if i've confused you, i've definatley confused myself but any advice would be greatly appreciated.

Thanks in advance, Anders.

Tixy

Hi

I am not someone in the know for debt relief orders but maybe try readng this http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=37_debt_relief_orders or reading/asking on this thread on the bankruptcy board- http://forums.moneysavingexpert.com/showthread.html?t=1385275

immoral_angeluk

AndersM wrote: »

Hi, newbie here so be gentle!

I've currently booked an appointment with the CAB to dgetting a DRO. I have debts of £8000-9000 with 5-6 creditors. I have a permanent job that starts in around 4 weeks as I am waiting for a Criminal records check to go through. I will only be on £1200 a year and after a six month period of unemployment I am back living with my parents.

So my question is to those in the know is this..as I am living with my parents my surplus income will be more than £50 per month (not including paying my debts) but I still wouldn't be able to pay minimum payments. Also my parents want me out of the house when i start getting paid so I will need to rent and in that scenario I will be under the requirement for the surplus income.

How does the surplus income criteria work? does it include your propsed minimum payments or just your other living expenses ie bills, food, travel costs to work etc?

sorry if i've confused you, i've definatley confused myself but any advice would be greatly appreciated.

Thanks in advance, Anders.

How have you worked out your disposable income, have you completed a financial statement? Can you post it on here. I'd imagine there's areas that can be tweaked.

AndersM

cheers for the replies, I've literally done a basic financial statement here but I will do a proper one tommorow and dig out the post.

income £220 p/w before tax (guessing around £45 with Ni deducted)
= £175
minus £50 board to parents once job starts
= 125
minus Travel to work costs of £25
= £100
minus food and living costs (probably get away with 30-40 max?)
= £60

now even with £220-250 a month "disposable" income i would not be able to meet my minimum payments...you have to remember that I have to save around £800 for bond and rent in new place as my parents want me out a.s.a.p!

I'm in a bit of pickle, thanks for the help, and yes I do realise that this looks like it was written by a small child:).

immoral_angeluk

This is by no means exhaustive, and your CAB advisor will go through it with you in fine detail but this gives you an idea of the things you should be thinking about.

http://www.adviceguide.org.uk/index/d_budget_sheet.pdf

Have you parents given you a time frame to be out by? If you need to be out sooner rather than late it may be acceptable to include a guide figure for rent and household bills in your financial statement when it comes to doing a DRO application.

fatbelly

AndersM wrote: »

Also my parents want me out of the house when i start getting paid so I will need to rent and in that scenario I will be under the requirement for the surplus income.

Then that's the time to submit your DRO.

Does that answer the question?

fermi

loumt wrote: »

Has anyone got experience of one of these?

It is something we are considering as we have nearly £50k unsecured debt (bad I know) and don't want to lose our house.

Just wanted to know if there was anyone out there is well into the process that can offer any tips or advice.

They are similar to IVAs in England. There is an IVA sub-board here, where you might get more help.

As you've posted inside a DRO thread, I'll move your post and replies into a new thread on that board.

And be back with a link for you to the new thread.

fermi

loumt: The new thread is here:

http://forums.moneysavingexpert.com/showthread.php?t=2447707

If need be, feel free to start a new thread here on the DFW board as well.