Considering DRO need advice.

drowning_slowly

Hi all,

I've been trying to pay off my debts (currently totalling 10,525) for years now but i just seem to be going round in circles, i get them down by a bit and then one of my childrens birthdays/christmas/ partners car fails its MOT and needs repairs and i'm back where i started if not worse off. Somebody recently suggested that i get a DRO which by my understanding would mean that for 90 pounds i would be debt free in a year but i've got a few concerns.

1) most importantly, my partners car. It's in his name and he bought it second hand 18 months ago for 1500 and he uses it to get to work. Will that be counted?

2) I don't have anything of real value, just a tv bought 3 years ago for 700 (catalogue prices!!!) and my laptop bought just over a year ago for 300 (catalogue prices!!) .... does that mean that i'm over the 300 limit? They certainly aren't worth what i payed for them so does anyone know how their value would be calculated and will things like the childrens tv/beds/washing machine all be added up?

3) My partners income, is that counted?

4)We have a joint bank account so will the DRO effect his credit rating? (thinking of him paying for his car insurance by instalments and his mobile phone contract).

5)Does anyone know where i can calculate reasonable outgoings or is there a website that lists reasonable amounts for that kind of thing? At the moment dinner for two adults and three children has to be done for 5 to 6 pounds a night because we're struggling and that just doesn't seem alot for the five of us.

I apologise for all the questions but i don't want to find that the DRO that i thought was a 'solution' to turn out to be a major headache, esp for my partner.

coinxoperated

Would suggest you contact CCCS. I've just sorted a debt relief order through them and they have made the entire thing so simple. They will also be able to answer all of your questions in full. If a DRO is not the right option for you, I have no doubt they will be able to do something to help you! X

immoral_angeluk

drowning_slowly wrote: »

1) most importantly, my partners car. It's in his name and he bought it second hand 18 months ago for 1500 and he uses it to get to work. Will that be counted?

No.

2) I don't have anything of real value, just a tv bought 3 years ago for 700 (catalogue prices!!!) and my laptop bought just over a year ago for 300 (catalogue prices!!) .... does that mean that i'm over the 300 limit? They certainly aren't worth what i payed for them so does anyone know how their value would be calculated and will things like the childrens tv/beds/washing machine all be added up?

No. Those are generally exempt household goods unless they are particularly luxurious or have a high resale value, which it doesn't seem that way to me.

3) My partners income, is that counted?

Your personal disposable income can't be more han £50pm. Each of your %'s of household income and expenditure would be calculated (so if he earned more, he'd be allocated a bigger share of the expenditure if that makes sense.) and so long as after your % of the income minus your % of the expenditure leaves you with less than £50pm disposable it wouldn't be a problem.

4)We have a joint bank account so will the DRO effect his credit rating? (thinking of him paying for his car insurance by instalments and his mobile phone contract).

Yes. You'll have a joint financial association on your credit files.

5)Does anyone know where i can calculate reasonable outgoings or is there a website that lists reasonable amounts for that kind of thing? At the moment dinner for two adults and three children has to be done for 5 to 6 pounds a night because we're struggling and that just doesn't seem alot for the five of us.

You'll need to speak to an approved intermediary through one of the debt advice agencies to properly assess your income/expenditure. Don't just make it up to suit the guidelines for a DRO.

I hope that clarifies your points!