Obtaining a DRO-living between the UK and Greece

aimzee84

Hi!

I've not posted on here for about 18 months because I mangaed to cut my debts down by £7000 since then! :j

However, things are no longer so rosey...

I live for 9/10 months of the year in Greece. I return for 2/3 months to the UK to work over the christmas period. I've been lucky and managed to get 3 months work every winter and use the income from that to pay my debts throughout the year (overtime and bank holiday working!).. Until now. I was given a 5 week contract this year, the last day of which was 7th January. I am now completely stuck. I received my last pay cheque today, £196, which is nowhere near enough to cover a monthly repayment to one creditor.

I have three creditors- AA, Amex, and PTP (I know...not proud of that).

I have read that as long as I have lived in the UK in the last three years I can obtain a DRO.

All of my debts are UK registered.

I've been in touch with CCCS and have the paperwork they sent me. It asks for previous bank statements-surely this will show my wage being paid in-which is no longer relevant as I am no longer being paid. Am I expected to wait until I can show 2 months with no income? I have already missed a payment with each creditor and am not looking forward to the letters that will be arriving soon-what do I tell them?

Help!! I don't want to feel like I'm dodging my debt, but I have no way of paying them, I have applied for other jobs but heard nothing, and I am not eligible for JSA as I live abroad..
Thank you.....

fatbelly

aimzee84 wrote: »

I've been in touch with CCCS and have the paperwork they sent me. It asks for previous bank statements-surely this will show my wage being paid in-which is no longer relevant as I am no longer being paid. Am I expected to wait until I can show 2 months with no income? I have already missed a payment with each creditor and am not looking forward to the letters that will be arriving soon-what do I tell them?

If you genuinely have no income then you meet the surplus income qualification! I can't see CCCS would have a problem with that if you explain it to them.

I wouldn't respond to the creditor letters at all. Nothing's going to happen in the next month or two.

The bigger issue is how you are going to survive on nil income, no assets and no savings and whether now is the right time to get a DRO. You really need to have an income/expenditure that balances (surplus less than 50 pcm) and know that that situation will stay stable for the next 12 months.

aimzee84

Hi, Thanks for your response.
I'm quite lucky, as my work in Greece covers my monthly rent and leaves me enough spare for food etc. The cost of living out there is so much lower than here that I can live on the equivalent of £50 pm easily. My employment doesn't start until April though. While I'm in the UK I stay with my parents, so there's no worry there about paying bills etc, and my landlord only charges me when I'm in the house in Greece.
If I fill out the budget form should I fill it out as if I were earning what I do through the summer? It still leaves me with less than £50 'spare'..And that situation will stay the same for at least 8 months.

Thank you for helping! I really don't want to make the wrong decision! Or pay the fee if I'm not going to get anywhere-that £90 could go towards what I owe and it's a lot to lose..!

aimzee84

This is my SOA if I use the income I earn in Greece....
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................ 550
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 550

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 350
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 20
Gas..................................... 0
Oil..................................... 15
Water rates............................. 25
Telephone (land line)................... 45
Mobile phone............................ 10
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 60
Clothing................................ 0
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...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 525


Assets
Cash.................................... 18
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 18

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
Personal Loan..................10840.....288.2.....11.9
Credit card....................1976......55........15.9
PayDayLoan.....................349.......349.......4375
Total unsecured debts..........13165.....692.2.....-


Monthly Budget Summary
Total monthly income.................... 550
Expenses (including HP & secured debts). 525
Available for debt repayments........... 25
Monthly UNsecured debt repayments....... 692.2
Amount short for making debt repayments. -667.2

Personal Balance Sheet Summary
Total assets (things you own)........... 18
Total HP & Secured debt................. -0
Total Unsecured debt.................... -13,165
Net Assets.............................. -13,147


I earn enough to live, but not to pay my debts... Any advice out there?

:-)

fatbelly

£60 per month for food, £20 per month electicity, looks attractive to me.

Anyway, no problems for a DRO as far as I can see.

aimzee84

fatbelly wrote: »

£60 per month for food, £20 per month electicity, looks attractive to me.

I know! Thing is, most of the fruit and veg is grown in my garden, the rest is purchased from other locals, who charge about 1Euro for 2kilos of mixed veg..And I get 'lunch' at work as part of the job (as well as drinks!), so I don't have to spend a great deal on food. The only thing I buy in supermarkets is meat and household bits-washing powder etc.. The electric is cheap simply because I work 7 days a week and am rarely actually in the house, and there is only one energy supplier so the costs are fairly low, especially when compared to the UK.

I'm going to 'phone CCCS today and ask if I should apply using the details of my income in Greece-as my income is only going to be nil for 2 months at the most.. I will post on here and let you know what they say.

I've already sent my application to Experian for my credit report, and the £90 fee is sat in the bank waiting..!

aimzee84

Hello..again! I am just waiting for a copy of my credit report to come through, and then I have everything ready...
One question..I am being threatened with bailiffs/debt collection/legal action by one creditor, should I tell them I'm in the process of applying for a DRO or just offer to pay what I can to keep the bailiffs away?

fatbelly

aimzee84 wrote: »

Hello..again! I am just waiting for a copy of my credit report to come through, and then I have everything ready...
One question..I am being threatened with bailiffs/debt collection/legal action by one creditor, should I tell them I'm in the process of applying for a DRO or just offer to pay what I can to keep the bailiffs away?

If we're just talking about a normal credit debt (not council tax or hmrc for instance) then they have to issue a court claim, you respond, the court makes an order,then if you default, bailiffs can be instructed. It's a fairly long process so no need to worry about what are probably empty threats.

However, what you do need to do in the run-up to a DRO is treat all creditors equally. The easiest way to do this is to pay them all nothing. I wouldn't give them advance notification of the DRO. Let it be a nice surprise to them.

aimzee84

No, it's just a payday loan.... I was thinking of just paying them all £1, just as a sort of 'get off my back I'm trying' type thing...! But if it's seen as fair not to pay any of them, and they can't send debt collectors in the next few weeks, I won't..

Thank you!

fatbelly

aimzee84 wrote: »

No, it's just a payday loan.... I was thinking of just paying them all £1, just as a sort of 'get off my back I'm trying' type thing...! But if it's seen as fair not to pay any of them, and they can't send debt collectors in the next few weeks, I won't..

Thank you!

Some intermediaries do recommend £1 payments. I can't see the point.

aimzee84

Ok..So I received my credit report today... The only thing is, it only shows one of my current debts... Is that normal? It shows the personal loan, but not the credit card or payday loan.. Is that going to be a problem? I have statements from all my creditors to include in my application.. I just don't want to send it all off if it's going to be turned down!

Thanks guys!