sarah

sarahstanley605

hi im in debt by roughly £5,000 and i cannot pay it as only my partner works and the total income we get is £300 a week to pay all the rent and council tax and all the other bills so at the end of the month we are short of paying our bills by £35 i have been advised to do a mini bankruptcy but they said i cannot work for a year or earn over £50 a month im gutted to be fair as i had a job interview today i need a job as we are well skint but i have heart failure and rheumatoid arthritis my doctor said i should n work but dla said i am fit enough so i have no choice as i cannot claim any benefits please hel:money:p

wba31

sarahstanley605 wrote: »

hi im in debt by roughly £5,000 and i cannot pay it as only my partner works and the total income we get is £300 a week to pay all the rent and council tax and all the other bills so at the end of the month we are short of paying our bills by £35 i have been advised to do a mini bankruptcy but they said i cannot work for a year or earn over £50 a month im gutted to be fair as i had a job interview today i need a job as we are well skint but i have heart failure and rheumatoid arthritis my doctor said i should n work but dla said i am fit enough so i have no choice as i cannot claim any benefits please hel:money:p

Firstly, we are limited to the general level of advice we can give you on here, but we can offer little bits, correct the wrongs you may have been told, and point you in the correct directions.
Before I go any further, your best way forward is to get free advice from one of the advice providers. Step Change Debt Charity can be called on 0800 138 1111 (mon - fri, 8-8, saturday 9-3, this number is free from mobiles and landlines) or you can do it online through their website. You could try and get an appointment at your local CAB, or ring National Debtline on 0808 808 4000 (mon - fri 9-9, sat 9.30 - 1). I would advise speaking to someone, run them through your circs and plans and ideas, and they can factor all that into your advice.

On the face of it, you can probably do a DRO (described as a "mini bankruptcy," it has some similarities to bankruptcy, but in reality is very much it's own insolvency option). The fact that you have been told you cant work or earn more than £50 a month for 12 months is totally not true. The criteria for a DRO is your debt is less than £5000 (tick), no assets worth more than £300 (car can be £1000), and budget surplus of less than £50. You may get a job paying £1000 a month, but if you starting paying your share of bills, buying food, travelling to and from the job, budgeting for other things you may have cut out for budget reasons, you may find your £1000 very quickly is all accounted for.

I dont think it's as black and white as you have been told, and to start off your best option is to contact one of the 3 people I mentioned first, and please come back to these boards with further questions

UpToMyNeckInIt

What is a 'mini bankruptcy'? Not sure there is such a thing.

I wonder if your adviser was referring to a Debt Relief Order? If that's the case, it's not that you are not allowed to earn more than £50pm, but that you one of the qualifying criteria for a DRO, is that you may be eligible for one if your net disposable income, after living expenses, is less than £50pm.

I thinks that's the case. Good luck.

debt_doctor

wba31 wrote: »

The fact that you have been told you cant work or earn more than £50 a month for 12 months is totally not true.

Absolutely correct
DD

debt_doctor

wba31 wrote: »

The criteria for a DRO is your debt is less than £5000 (tick),

Simply a typo error, wba31well knows that the limit of debt is £15000.

DD

wba31

debt_doctor wrote: »

Simply a typo error, wba31well knows that the limit of debt is £15000.

DD

Oops, my apologies, and thank you Debt Doctor

debt_doctor

wba31 wrote: »

Oops, my apologies, and thank you Debt Doctor

debt_doctor wrote: »

Simply a typo error, wba31well knows that the limit of debt is £15000.

DD

- this reminds me of the day I sent out a 'client care letter' to one of my clients indicating that the DRO fee was £900! - oops!:o

DD

wba31

debt_doctor wrote: »

- this reminds me of the day I sent out a 'client care letter' to one of my clients indicating that the DRO fee was £900! - oops!:o

DD

Ha ha, - I once wrote to a client advising they were no long eligible for the DRO due to their debt being higher than £000 pounds... luckily they called and understood I'd missed the 15...