Hoping to apply for DRO need advice please

Gingerbones

Hi, im hoping someone can give me some advice please?

I have approx 8000 in debts that I have been saddled with since my ex partner (who was paying them) was put in prison. The debts are all in my name so i was hoping to apply for a DRO and contacted the citizens advice bureau.

While I was with my ex partner I lost my job and now live in rented accommodation with a son, who i raise alone full time. I completed a budget report with the citizens advice of my outgoings and they agree that I can not afford to repay the debt at this time and a DRO was my best option.

However, I currently have about £1000 in savings which i have kept in order to pay for things my son needs (ie a bed which i need to buy him, future heating bills etc, and generally just providing for him). If I went and bought him a bed etc now would it affect my application and are they going to take all that money and leave me with nothing?

I have read all the information and I do know that it says that I must only have £300 in capital assests so it may seem like a really daft question really. Can I not even pay some of the money to my energy provider so that I am covered for when my quarterly energy bill comes around?

Any help would be greatly appreciated and apologies again for my ignorance,

debt_doctor

Hi,

There is no reason at all that you could not spend some of your savings on essential furniture, clothing, and other costs associated with you or your children.
Once such spending reduced your savings to below £300 you would be DRO eligible, and would have behaved perfectly reasonably.

DD

Gingerbones

Thank you so much for your reply! I have been so worried, but didnt want to spend any of the money in case it affected my application. Can i also ask, my debts are currently registered at my previous address as my former partner was paying them. Would my best course of action now be to write to each one changing my address, including my new budget statement and offering a token payment while i apply for the DRO as I read that it could take some time. Thank you again for your help, i may actually sleep a little better tonight.

debt_doctor

I would suggest you do no such thing!
Giving your creditors your new address will bring an onslaught of grief you do not need.
Best get on with your DRO application once asset eligible as soon as you can.

DD

debt_doctor

Gingerbones wrote: »

i may actually sleep a little better tonight.

Good, I firmly believe that advice should put you in a positive frame of mind to do whatever it is to make your situation better.
I would imagine that being debt free is just around the corner for you.

DD

Gingerbones

So..., do not change my address at all? Or wait until I apply? As surely I cannot apply until my address Is changed??

debt_doctor

Apply for your Experian credit report with your current address and do the DRO using your current address as soon as possible after that.

DD

wba31

debt_doctor wrote: »

Hi,

There is no reason at all that you could not spend some of your savings on essential furniture, clothing, and other costs associated with you or your children.
Once such spending reduced your savings to below £300 you would be DRO eligible, and would have behaved perfectly reasonably.

DD

I would advise that you keep receipts of all purchases just in case your intermediary wants to keep this evidence in case of any questions from the IS

Gingerbones

Thank you for all the advice. I'm going to buy a bed tomorrow but will keep receipts etc. I have made an appointment with my bank as I'm concerned that they may close my account once I apply. I only have a basic account with lloyds tsb with a debit card but I'm unsure if I will lose it. Does anyone know about this?

caz2003uk

I had a Lloyds cash account when my DRO was approved and ended in sept 2012, I still have this account! As long as you don't owe Lloyds any money it should be fine!

wba31

Gingerbones wrote: »

Thank you for all the advice. I'm going to buy a bed tomorrow but will keep receipts etc. I have made an appointment with my bank as I'm concerned that they may close my account once I apply. I only have a basic account with lloyds tsb with a debit card but I'm unsure if I will lose it. Does anyone know about this?

If you have no debts with Lloyds Tsb or Halifax bank of Scotland I wouldn't tell them, I've heard of no problems with their accounts