DRO or Bankruptcy?

memphis12

Hi.

I have about 13k unsecured debt in my name.

I have a mortgage of £120k with an ex partner and a £20k unsecured attached to the mortgage called a - together mortgage -
the house is £3400 in arears.

What i was wondering is:

I cant afford to go banrupt. I cant get the £700+ money to do it.

I read a DRO is only £90 and you dont have to go to court.

If i went through DRO would they take my name off the debt surrounding my house and unsecured with it and chase my ex for it? If so would I qualify for the "under £15k of debt bit?

My ex doesnt mind as she wants house but they would let her have it in her name.

Thanks in advance to anyone who can help .

rising_from_the_ashes

memphis12 wrote: »

My ex doesnt mind as she wants house but they would let her have it in her name.

Hi Memphis, sorry I don't understand this bit - if you ex wants the house & they'll let her have it .... can she not buy you out?

Who is living in the house atm?

Are either of you paying the mortgage?

Does you income qualify you for a DRO? (you have to be on a low income as well as having £15k of debt)

Do you have a car?

To me (and I'm not an expert on them by any means & others may offer more advice) as they only last 12 months then unless you've got a plan in place on how you're going to deal with the debts within that time, it's really just putting things off.

Sorry for all the questions:o

memphis12

rising_from_the_ashes wrote: »

Hi Memphis, sorry I don't understand this bit - if you ex wants the house & they'll let her have it .... can she not buy you out?

Who is living in the house atm?

Are either of you paying the mortgage?

Does you income qualify you for a DRO? (you have to be on a low income as well as having £15k of debt)

Do you have a car?

To me (and I'm not an expert on them by any means & others may offer more advice) as they only last 12 months then unless you've got a plan in place on how you're going to deal with the debts within that time, it's really just putting things off.

Sorry for all the questions:o

Hey. no worries - thanks for trying to help.

I dont have a car. My ex got turned down for taking house on and cant get it. long story.
No one in house. its just sitting there.

I read that after 12 months all debts were written off like bankruptcy? is this not true... ?

im on about £22k - but i work where I get enhancments depending on what shifts i work. So my pay before enhancements might be something like £17k - £18k... would that qualify?

Thanks for any help you can give me

I_luv_cats

What are the requirements for a Debt Relief Order?

1. The debtor is unable to pay their debts
2. The debtor's total unsecured liabilities must not exceed £15,000
3. The debtor's total gross assets must not exceed £300; excludes pension from 6th April 2011
4. The debtor's disposable income, following deduction of normal household expenses, must not exceed £50 per month
5. The debtor must be domiciled in England or Wales, or in the last 3 years have been resident or carrying on business in England or Wales
6. The debtor must not have previously been subject to a DRO within the last 6 years
7. The debtor must not be involved in another formal insolvency procedure at the time of application for a DRO, such as:

• An undischarged bankrupt;
• A current Individual Voluntary Arrangement;
• A current Bankruptcy Restrictions Order or Undertaking;
• A current Debt Relief Restrictions Order or Undertaking;
• An interim order
• If there is a current pending debtor's bankruptcy petition in relation to the debtor but the debtor has not been referred to the DRO procedure by the court as a more suitable method of debt relief;
• If there is a current pending creditor's bankruptcy petition against the debtor but the debtor has not obtained the creditor's permission for entry into the DRO process.

http://www.debtwizard.com/debt-help/debt-solutions/33-debt-relief-orders




Who might DROs be suitable for?

People with relatively low liabilities, little surplus income and few assets and who are currently unable to access other forms of debt relief can apply. Those living with parents or in rented accommodation may also apply. Those that have a mortgage and are in negative equity will not be able to apply. So if you are a house owner you are not eligible.

memphis12

"You own a property (though there are some exceptions in this case)"

They have that written on. So.. I thought I would ask on here to see if anyone new what the "exceptions" were..

I_luv_cats

https://debtremedy.cccs.co.uk/start.aspx

CCCS online debt remedy is an useful resource to help identify your debt options.

JCS1

Sorry, but you are not eligible for a DRO if you have a property (even one in negative equity), it would have to be bankruptcy.

Also, if you have £13k of unsecured debts, and then the £20k unsecured loan alongside the mortgage, you are over the £15k limit. Pop over to the bankruptcy board if you decide that BR is the right option for you.