Rejected for DRO because im on JSA £56 per week

SK89

Hi, guys, i applied for a DRO a few weeks ago, and after showing my credit report, and going through all the checks to make sure i didnt own a home and my debt was below £15,000. I was refused because i get paid £56 per week from job seekers allowance of which i have to pay £50 to my parents for board. That leaves me with about £25 every month, but im lucky that i live with my parents and i dont smoke or drink, however i was told that £50 i pay to my parents wasn't essential and so they are classing it as me having more than £50 disposable income per month.

Im not trying to lie to them, i genuinely pay £50 a week board, and have less than £7 a week to live on, i was wondering if anyone had a similar experience of applying for a dro while on job seekers and whether you were accepted or not.

Thanks in advance.

dt3887

im sorry, but 50 a week out of 56 is a tad OTT IMHO. yea, you dont smoke or drink, BUT how can you be expected to actively seek work, attend interviews, sign on with 6 quid a week left?

SK89

Hi thanks for your reply, the thing is the job center is about 15 minutes away from me so i can walk there whenever i need to, i apply for jobs online and also go around town. And if i ever have an interview i get a lift sometimes off my dad who is retired.

But that isnt my concern im happy to live off £6 a week, its just the DRO people rejecting me because apparently paying board isnt essential.

fermi

Message from a CAB intermediary who can't post directly as his phone won't let him on Hols.

Approach a different intermediary for a DRO instead.

ladyday

That seems very harsh, I would definitely try another intermediary for the DRO.

I applied through CCCS and I was approved for a DRO about 18 months ago and I was living with parents. My figures submitted were about £160 per month rent which covered the room plus my share of all household bills, it didn't include food which was covered by another figure under housekeeping. You should include an amount for phone and travel as well, those lifts off your Dad aren't free, petrol costs money. Travel and phone would be reasonable expenses for a jobseeker.

wba31

SK89 wrote: »

Hi, guys, i applied for a DRO a few weeks ago, and after showing my credit report, and going through all the checks to make sure i didnt own a home and my debt was below £15,000. I was refused because i get paid £56 per week from job seekers allowance of which i have to pay £50 to my parents for board. That leaves me with about £25 every month, but im lucky that i live with my parents and i dont smoke or drink, however i was told that £50 i pay to my parents wasn't essential and so they are classing it as me having more than £50 disposable income per month.

Im not trying to lie to them, i genuinely pay £50 a week board, and have less than £7 a week to live on, i was wondering if anyone had a similar experience of applying for a dro while on job seekers and whether you were accepted or not.

Thanks in advance.

Can you confirm for me, have you approached a debt advisor who has refused to allow you to apply because of this?

OR has a DRO been submitted to the IS who have revoked it on this basis?

I do agree however that £50 a week is steep to pay (unless your parents are on benefits themselves and need the help) but even then it's still steep. Until I married and moved out last year I only paid £40 a week to my parents (their figure, not mine - I did offer more!!!) and I was working full time in a decent paid job...

HappyMJ

£50 is steep on income of £56.25 a week but it can be broken down as £11.45 a week for the rent and £3.30 a week for the council tax as they would have been the non dependant deductions had your parents been on full benefits. Then you can add an equal share of the gas bill, the electric bill, the water bill, the landline and broadband line rental and then add £25 per week for food and groceries for yourself. It'll end up being the same figure as your £50 all in for everything.

SK89

Hi, yes the CAB person submitted my DRO to the IS and they rejected it. Also i pay £50 a week altogether which means for my rent, my share of the bills etc.

wba31

SK89 wrote: »

Hi, yes the CAB person submitted my DRO to the IS and they rejected it. Also i pay £50 a week altogether which means for my rent, my share of the bills etc.

It's the first I've heard of this. Did your intermediary question the payment? has it been objected by a creditor?

fermi

I always thought the I&E assessment was done by the intermediary and the IS basically rubber stamped that?

debt_doctor

fermi wrote: »

I always thought the I&E assessment was done by the intermediary and the IS basically rubber stamped that?

That is pretty much true. A DRO application is a partnership process between the debt adviser (intermediary) and the Insolvency Service.
I have never had a financial statement questioned by the IS.

You need to have a full explanation from your intermediary as to why your application failed. Don't be fobbed off.

DD