DRO or Bankruptcy Student Loan decides

phantomraspberry

I'm not sure if this question may have been answered in another thread,and if it has i'm sorry for being lazy and not finding it.

I have debts of roughly £13,000. plus i have a student loan which i have deferred for 15 years as i've never earned enough to start paying it back.

The student loan takes me over the DRO limit and so the CAB have advised bankruptcy.

I do not own a home or car and have no assets.

Can i leave the student loan out of my claim and go for DRO? It just seems to make sense as the BR will not wipe the student loan anyway. At the end of the day its the difference between my finding the fees of £90 or £525.

Please can anyone help? xxx

phantomraspberry

forgot to say the student loan is roughly £7000.

debt_doctor

Hi,

I am afraid that your CAB has advised you incorrectly. Your student loan balance is an excluded debt for the purposes of a DRO and therefore does not count towards the £15k limit.
So, a DRO is an option for you.

For clarity, you cannot get rid of student loan balances within a DRO or bankruptcy.

DD

phantomraspberry

This is good news. much easier to find £90. Thank you. I'll ring my 'case worker' on monday and have a further chat. you may have just made my weekend!

debt_doctor

No problem.
I am an Authorised Intermediary, as are some of my colleagues on here, so I process DROs.
I think the person who advised you has a 'training need'.

DD

phantomraspberry

the advisor at CAB has confirmed that the DRO is applicable, so that's great. i have another question. The Tax credits people have contacted me and my ex saying that we owe them £276.00 i have no means of finding this can i include this debt on my DRO or is my ex liable for half?
thanks in advance....

debt_doctor

phantomraspberry wrote: »

the advisor at CAB has confirmed that the DRO is applicable, so that's great. i have another question. The Tax credits people have contacted me and my ex saying that we owe them £276.00 i have no means of finding this can i include this debt on my DRO or is my ex liable for half?
thanks in advance....

Hello again, the full amount of the tax credits overpayment can be included in your DRO. Your ex will remain liable for the full amount.

DD