New job in final month

paul041

What would happen if I sort out a DRO and stick it out for 11 months, but in the final month, I start a better paid job. The first time I'd get paid would be after the DRO discharge date, so would it make any difference?

debtfree2015_2

I dont think it would make a difference as long as your excess income doesnt go above £50 that last month.

You could always double check with who ever put forward your DRO

Congrats on the job offer!

paul041

Thanks :-) but I'm nowhere near that yet. I am still thinking about applying for a DRO.

Just curious what the rules were, if you do work in the final month that would make more than £50 difference to your income, but you don't get paid for it til after discharge.

debtfree2015 wrote: »

Congrats on the job offer!

fatbelly

paul041 wrote: »

What would happen if I sort out a DRO and stick it out for 11 months, but in the final month, I start a better paid job. The first time I'd get paid would be after the DRO discharge date, so would it make any difference?

No, the concept of surplus income works on 'income received' so what is received after the moratorium finishes is of no consequence.

There is however the possibility that this might count as a relevant change of circumstances within the moratorium. I've never seen it happen in practice but this is in the guidance:

Unlike bankruptcy, there is no early discharge for a debtor from the DRO process. However, should a debtor‟s circumstances change sufficiently to allow them to make contributions to their creditors, the Official Receiver will need to consider whether or not to revoke the DRO. If the changes in circumstance occur close to the end of the 12-month moratorium period, the Official Receiver can extend the moratorium period for up to three months to allow the debtor to come to an arrangement with their creditors before taking revocation action. During this extension time a debtor will be subject to the same restrictions, and will enjoy the same protection, as they experienced during the first 12 months of the DRO.