DRO Advice Please

poormummy_3

Hello

I have a few questions which I would really appreciate some help with.

When working out how much money my family need to live on, pay bills, buy food etc - how are these figures calculated? For example, when I complete the debt remedy form on the CCCS website, if I input that I spend £5 a month on clothes, it will say the minimum they would expect is £31 and won't let me put in the £5. So... for DRO purposes, would I put down the £5 or £31?

Will I still be able to have a bank account? And can I still have direct debits?

If I spent money on christmas and applied for the DRO afterwards, would I be in trouble for the christmas spending?

Finally, I think my personal debts are about £15,300 (I'm waiting for access to my credit report with experian) - would a DRO be agreed if I paid off the £300 and then applied?

Thank you xx

wba31

poormummy wrote: »

Hello

I have a few questions which I would really appreciate some help with.

When working out how much money my family need to live on, pay bills, buy food etc - how are these figures calculated? For example, when I complete the debt remedy form on the CCCS website, if I input that I spend £5 a month on clothes, it will say the minimum they would expect is £31 and won't let me put in the £5. So... for DRO purposes, would I put down the £5 or £31?

Will I still be able to have a bank account? And can I still have direct debits?

If I spent money on christmas and applied for the DRO afterwards, would I be in trouble for the christmas spending?

Finally, I think my personal debts are about £15,300 (I'm waiting for access to my credit report with experian) - would a DRO be agreed if I paid off the £300 and then applied?

Thank you xx

The guidelines are set with minimums so that the advice agency arent forcing you to budget too low. If you spend less, put that in and see if it will still be accepted.

With your debts at £15300, would it not make more financial sense to apply for bankruptcy? by the time you have paid off £300 + £90 fee you're at £390, then if any of your creditors add on any interest or charges you then have to pay that too. the DRO wont be done instantly by any organisation, last Ive heard is CAB and NDL are at approximately 10 weeks and Ive heard CCCS take 3-4 weeks to complete the DRO once the paperwork they require is received.
If you go bankrupt it doesnt matter how much your debts go up, everything is included and the overall effect is pretty much the same unless you own assets

poormummy_3

I don't know why, but going bankrupt frightens me, whereas getting a DRO feels ok! I'm terrified of going to court and being told off!

wba31

poormummy wrote: »

I don't know why, but going bankrupt frightens me, whereas getting a DRO feels ok! I'm terrified of going to court and being told off!

You won't be told off in a bankruptcy court, the process at the court is simply for the district judge to check that you are persuing the correct option, and it wont be a problem for you to go bankrupt. There is an interview you have to have with the OR's office, but again, i think this is more a data capture exercise (although i could be wrong if it's changed)

If I were you I would complete your thing with CCCS and get some advise from an advisor there whether to pay a bit off and do the DRO, or have a go at the bankruptcy