No money left; Bankruptcy or DRO? Please help;

SimIsOnTheUp

Hi,

Having posted on DFW board, I thought it more relevant here (having been kindly advised by Tixy on DFW).

As I'm already down to £50 per week left on ESA, after the Water and ESA Overpayment is taken out, and that's before I even eat, would you guys recommend a DRO or BR?

My debt as you can see, stands just shy of £14,700, and my sole income at present is ESA.

Any advice would be most appreciated -

Having contacted CCCS, they suggested that the best way forward is a Debt Relief Order.

That was a month ago.

Now, looking at my figures, I don't even have enough money coming in to cover my bills, let alone my debts.

At least I'm calm and sober

Any advice would be most appreciated.

Will have to do something within the next 2 - 3 weeks (prob a DRO), as I'm only just under the £15,000 threshold (£14,696.79) -

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 1
Number of children in household......... 0
Number of cars owned.................... 0

Monthly Income Details
Monthly income after tax................ 0
Partners monthly income after tax....... 0
Benefits................................ 261.8
Other income............................ 317.92
Total monthly income.................... 579.72

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 317.92
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 60
Gas..................................... 0
Oil..................................... 0
Water rates............................. 31.4
Telephone (land line)................... 13.49
Mobile phone............................ 35
TV Licence.............................. 24.25
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 200
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...................... 15
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 4
Entertainment........................... 10
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 721.06


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
Rent...........................410.58....0.........0
Council Tax....................459.31....0.........0
NPower - Electric..............905.59....0.........0
Arvato.........................924.......0.........0
Cabot..........................112.......0.........0
Capquest.......................689.......0.........0
Graham White & Co..............359.......0.........0
Lowell.........................537.......0.........0
Lowell.........................533.......0.........0
Moorcroft......................589.......0.........0
Nelson, Guest & Ptnrs..........1056......0.........0
Scotcall.......................481.......0.........0
Santander......................1700......0.........0
Ex - Partner...................2053......0.........0
DWP Social Fund................950.......0.........0
Housing Benefit O/Pay..........2320......0.........0
ESA Overpayment................430.88....0.........0
Severn Trent Water.............187.43....0.........0
Total unsecured debts..........14696.79..0.........-


Monthly Budget Summary
Total monthly income.................... 579.72
Expenses (including HP & secured debts). 721.06
Available for debt repayments........... -141.34
Monthly UNsecured debt repayments....... 0
Amount short for making debt repayments. -141.34

Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -0
Total Unsecured debt.................... -14,696.79
Net Assets.............................. -14,696.79

Created using the SOA calculator at https://www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission, using other browser.

SimIsOnTheUp

Just to add -

99% of my debts were ran up due to depression and alcoholism.

I need to do this sooner rather than later, as things have been stagnant for a couple of years now, and I'm determined for it not to make me ill again.

What are the differences between a DRO and a BR (other than the obvious difference in the fee and the thereshold of debt)?

SimIsOnTheUp

Also meant to ask;

I'm about to type up some letters to all of my creditors (using the CCCS template), offering token payments until my situation improves.

Would you guys recommend this at this stage, or (seeing as I'm rapidly approaching the £15K cut off point) would you just go for the DRO straight away?

Thanks.

Ineedaname

SimIsOnTheUp wrote: »

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 1
Number of children in household......... 0
Number of cars owned.................... 0

Monthly Income Details
Monthly income after tax................ 0
Partners monthly income after tax....... 0
Benefits................................ 261.8
Other income............................ 317.92
Total monthly income.................... 579.72

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 317.92
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 60
Gas..................................... 0
Oil..................................... 0
Water rates............................. 31.4
Telephone (land line)................... 13.49
Mobile phone............................ 35 not allowed in BR
TV Licence.............................. 24.25 13
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 200
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...................... 15
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 4
Entertainment........................... 10 not allowed in BR
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 721.06


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
Rent...........................410.58....0.........0
Council Tax....................459.31....0.........0
NPower - Electric..............905.59....0.........0
Arvato.........................924.......0.........0
Cabot..........................112.......0.........0
Capquest.......................689.......0.........0
Graham White & Co..............359.......0.........0
Lowell.........................537.......0.........0
Lowell.........................533.......0.........0
Moorcroft......................589.......0.........0
Nelson, Guest & Ptnrs..........1056......0.........0
Scotcall.......................481.......0.........0
Santander......................1700......0.........0
Ex - Partner...................2053......0.........0
DWP Social Fund................950.......0.........0
Housing Benefit O/Pay..........2320......0.........0
ESA Overpayment................430.88....0.........0
Severn Trent Water.............187.43....0.........0
Total unsecured debts..........14696.79..0.........-


Monthly Budget Summary
Total monthly income.................... 579.72
Expenses (including HP & secured debts). 721.06
Available for debt repayments........... -141.34
Monthly UNsecured debt repayments....... 0
Amount short for making debt repayments. -141.34

Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -0
Total Unsecured debt.................... -14,696.79
Net Assets.............................. -14,696.79

Created using the SOA calculator at www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission, using other browser.

Is a mobile phone really essential whilst not working and considering even without debts you appear not to have enough to live on?

Can you reduce your grocery bill to help ease things?

What is 'other income'?

I'm guessing income is ESA, HB and CTB? You need to include full HB paid to you and then full rent paid out each month.

I haven't added in other allowances you could have in BR as you don't have any surplus to put into other categories.

fermi

SimIsOnTheUp wrote: »

What are the differences between a DRO and a BR (other than the obvious difference in the fee and the thereshold of debt)?

There is a difference regards overpayment of state benefits.

In bankruptcy, DWP can continue to deduct overpayments from continuing benefits until you are discharged from the bankruptcy.

In a DRO they must stop those deductions immediately.

Or at least, that was the position a few months ago. DWP are not happy about that and have been appealing. I think the appeals were all rejected and no new ones allowed, but I would have to check.

fermi

If you think a DRO with CCCS is or might be the way to go, then it would be advisable to get the ball rolling ASAP.

They did have a big backlog at one point.

If you decide not, then you could always opt out and before you pay the fees.

SimIsOnTheUp

fermi wrote: »

If you think a DRO with CCCS is or might be the way to go, then it would be advisable to get the ball rolling ASAP.

They did have a big backlog at one point.

If you decide not, then you could always opt out and before you pay the fees.

Many Thanks Fermi.

Yes, after speaking with CCCS, I've decided to go for the DRO.

Am going through the checklist as we speak, and getting the paperwork in order to send back to CCCS.

The trouble is, I already have a deficit :-/

My Income / Expenditure will balance when I start work. That won't be until next week though

Ineedaname

Ooh, you didn't say about having a new job, congratulations. :j

Good luck with sorting the DRO.

patman99

Sim, I noticed an entry for 'Graham White & co' if this is in respect of a Private Parking Company 'invoice' then this can be cheerfully ignored.

Good luck with the new job btw. I started back to work last week.

mel12

On a DRO your surplus income needs to be less than £50 per month for the whole year or it can be revoked.

Will you have much of a surplus with the new job?
(theres probably some scope for increasing your expenditure so it won't necessarily be a problem).

SimIsOnTheUp

Ineedaname wrote: »

Ooh, you didn't say about having a new job, congratulations. :j

Good luck with sorting the DRO.

Thanks!

Getting there, slowly but surely