DRO questions

newstudent10

I am considering entering into a DRO next month however there are a few questions which concern me.

1) I currently have a Barclays basic account and a Co-Op cashminder one. I do not owe money to either and have no OD facilities etc on these. Will they close them/freeze them?

2) I am due a pay rise of £40 approximately per month (after tax) in around 6 months. Would this cause the DRO to be revoked?

3) My father bought me a car last year, its worth around £1200. He bought it and then transferred it into my name about 3 weeks later. I pay him back £50 per month however he knows that I will be unable to keep up the payments for the next year and is fine but is concerned that I will have to sell the car and give all the money to the creditors/OR and then I will be left without a car and still owe him this money. Is there any chance that he can pay the £200 approx difference and I keep the car or is that a non-starter?

4) I have a student grant debt of around £2500 (a student loan as well, but I know that it's not included). Can I include that in the DRO?

Thanks in advance.

fatbelly

Your car should be valued on Parkers or, if it's older than 2002, by an equivalent method (I use wisebuyers). If it comes in at over £1000 then you cannot apply for a DRO.

If your 'surplus income' is not zero (well, less than 10) per month then there is the possibility that you will not meet the criteria in 6 months time when your income increases and your DRO would then be revoked.

All liabilities should be included so that includes overpayment of student grants (SLC debts are entered but marked excluded so don't count towards the 15k limit) and the debt to your father. You are not allowed to make payments to your creditors under a DRO. And there might be questions about how your surplus income is suddenly under £50 when you have been paying one creditor £50 per month.

I'm not saying a DRO is out of the question but if you post a statement of affairs on the debt-free wannabe board they might come up with some different options.