Questions on DRO - bank account and normal expenses?

nikirushka

Hi all. I am looking into the possibility of a DRo but not sure if I qualify for one thing, and am worried about my bank account for another.

Bank account first as that's the short question - how likely is it that it will be frozen? I have two actually - I'm self employed but with no income at the moment (new business, on housing benefit) and my credit rating is already shot with 3 defaults so I can't get another account anywhere except Lloyds. I have a normal and a business. I can lose the business one if need be, but I still need my normal one for DDs, business funds coming in etc.

Now the expenses - this I am totally unsure about.

I live by myself, but I have dogs - I know my creditors have been happy to count dog insurance etc as an expense when I've done I&Es but not sure on the DRO.

I've got the dog insurance, food and meds (uninsured condition and I have to source the meds myself) as low as I can get them.

Also, I have meds of my own that cost me around £8-10 a month.

Would any of those count or be considered as normal expenses? It may be that it won't matter, that even without them included I'll still be within the £50 - my lodger is moving out, which is prompting me looking at the DRO, but I won't know exactly what I've got coming in until my housing/council tax benefit is reassessed after she leaves.

immoral_angeluk

nikirushka wrote: »

Hi all. I am looking into the possibility of a DRo but not sure if I qualify for one thing, and am worried about my bank account for another.

Bank account first as that's the short question - how likely is it that it will be frozen? I have two actually - I'm self employed but with no income at the moment (new business, on housing benefit) and my credit rating is already shot with 3 defaults so I can't get another account anywhere except Lloyds. I have a normal and a business. I can lose the business one if need be, but I still need my normal one for DDs, business funds coming in etc.

Now the expenses - this I am totally unsure about.

I live by myself, but I have dogs - I know my creditors have been happy to count dog insurance etc as an expense when I've done I&Es but not sure on the DRO.

I've got the dog insurance, food and meds (uninsured condition and I have to source the meds myself) as low as I can get them.

Also, I have meds of my own that cost me around £8-10 a month.

Would any of those count or be considered as normal expenses? It may be that it won't matter, that even without them included I'll still be within the £50 - my lodger is moving out, which is prompting me looking at the DRO, but I won't know exactly what I've got coming in until my housing/council tax benefit is reassessed after she leaves.

As long as your overall expenditure is not excessive then those won't be a problem and would be seen as reasonable household expenditure.

Holly+Kitty_Rose

Is your current account in it's over draft or have overdraft facillities? If you are in your overdraft your bank account will need to be frozen and you will need to open a basic bank account before you proceed with a DRO. The overdraft would then be included in the DRO with you other debts presuming they don't amount to over £15,000.

Co-operative are excellent and offer a basic bank account which you can withdraw cash at an atm and pay bills as you normally would. My credit rating was certainly a lot worse than yours and I was able to open one.

If you do not have overdraft facillities and do not owe your bank any money then there is no reason that you would need to close the account or the account be frozen.

I can't advise about the situation with your dog as I do not have any pets currently. Could this be included in the housekeeping money? I can't remember if there is a section on the DRO budget for pets.

With regards to your own medicine I'm sure this could be included under the health section of the budget. If this medication is on prescription then you be be exempt from payment if your income is nil and possibly qualify for free nhs dental treatment. I believe the form is called HC1 or HC2. Certainly worth asking your local job centre.

Hope this helps.

dazza74_2

I'm in a similar spot and equally confused about a way forward and what's best to do. I'm self employed myself with not much in the way of work coming in, I'm just basically living of the working tax credit payments currently and have been selling of personal possesssions I no longer need to make up any short fall for the last 6 month's.

Went through the CCCS about 4 month's back and took their advice and I've just been sending the credit card company a token gesture £1 a month payment every since. Keep getting the letters saying they want £300 or so a month or else (well not quite or else but you get the picture). I'm not going to worry about doing anything like a dro for the time being myself, I'll keep on doing what I'm doing currently and let them make the next move. Way I see it, if they ever want to see main bulk of their money repaid they'll have to work with me. I don't have anything much of value they can take now. Way I see it, I'm only worried about keeping on top of the council tax and utility bills currently, those are my priorities.