Is DRO for me or Bankruptcy

purgatory

I owe around £14000 and I have so far been able to make the minimum repayments on all my credit cards and store cards.
But my marriage is in the mist of breakdown and the stress of debt is taking it toll.
I got into debt via online gambling which was my release a few years ago Due to mental illness I was diagnosed with suffering from and still do suffer from Panic Disorder, Agoraphobia, Ocd and Mild Depression.
I know this is not an excuse but it is a little background.

At the moment I don't work so I'm a house-husband. So the only income is my wife's part-time wages 24hours pw ,working tax credit and child tax credit and also child Benefit we have two children.

My wife has a few credit cards in her name and all the household bills are in her name ie: Sky digital, Dfs, Internet & Phone, Mobile phone and she has to pay them as they are in contract.

My bills are my credit cards and catalogues and also my mobile phone (I need my phone due to my on going Mental Health problems to contact home and helplines also internet anxiety forums).

Both myself and the wife have said that our marriage is all but over but we still have to be together for a while due to our 2 kids.

So if I go bankrupt/DRO how would that effect my wife and kids and her income and her bills

As I don't contribute to the household with not earning any money
But the household deposable income is over the £50 it is around the £300 mark but I have been informed that because I don't earn any money it should be ok.

And due to me problems I will not be looking to start work again until my Panic attacks and other mental health problems are under complete control.

And I'm worried about the items in the house as we do own things like a LCD tv and laptop and other things but I'm worried that due to my problems that my family will have to go with out and the mental stress this is all putting upon me is lead to me being put on to yet more medication from the doctor as they don't want the hard work I have done to be undone.

I'm already have panic attacks worried about if I need to go bankrupt how I would get to court as it is 35miles away and I can't travel buy public transport as the last time I did I had a major panic attack and it has scared me of travelling.

I have the paper work filled out for a Dro as myself and wife have spoke to the people at the National Debtline and they say I'm able to do one.. But I'm just lost and don't know what to do.

But it scares me when I read the people I owe can apply to the court to over turn it and I'm worried about being sent crashing back to square one again.

So which would be best a Dro or Bankrupt.. Which would protect myself Mental wise and my family.

And would I need a doctors letter to explain that my mobile is a much need life line for me (I'm not in any arrears with my phone and it is a new contract).

I hope some of this makes sense. Sorry if it goes on to much

National_Debtline

Hello there.

I really hope you found the adviser you spoke to at National Debtline helpful. Many of the key implications of Debt Relief orders and Bankruptcy are very similar - such as the effects on your credit file and the fact that your name is listed on a public register.

Given the information you've listed within your post I really can't see there being any potential issues with your creditors challenging a bankruptcy or DRO application. The fact that you find it difficult to travel could mean that a DRO would be a better option for you - it's also significantly cheaper at £90. Your application is unlikely to have any real direct impact on your wife or children.

It's important to consider that your debts are written-off at the end of the 12 month moratorium period under a DRO - which means that you must ensure that you meet the criteria for that time. For example if you have a change in your circumstances and your disposable income increases to more than £50 per month your DRO could be revoked. With bankruptcy the debt is written off once the order is made, but it is a far more expensive arrangement at at least £525.

Either option can be very useful in stopping creditors from giving people a tough time, please bear in mind that during the year that the DRO runs for your creditors should not be trying to chase you for payment.

Hope you find this post useful!

David @ NDL.

wba31

purgatory wrote: »

I owe around £14000 and I have so far been able to make the minimum repayments on all my credit cards and store cards.
But my marriage is in the mist of breakdown and the stress of debt is taking it toll.
I got into debt via online gambling which was my release a few years ago Due to mental illness I was diagnosed with suffering from and still do suffer from Panic Disorder, Agoraphobia, Ocd and Mild Depression.
I know this is not an excuse but it is a little background.



At the moment I don't work so I'm a house-husband. So the only income is my wife's part-time wages 24hours pw ,working tax credit and child tax credit and also child Benefit we have two children.

My wife has a few credit cards in her name and all the household bills are in her name ie: Sky digital, Dfs, Internet & Phone, Mobile phone and she has to pay them as they are in contract.

My bills are my credit cards and catalogues and also my mobile phone (I need my phone due to my on going Mental Health problems to contact home and helplines also internet anxiety forums).

Both myself and the wife have said that our marriage is all but over but we still have to be together for a while due to our 2 kids.

So if I go bankrupt/DRO how would that effect my wife and kids and her income and her bills

Looking at this, you have a factor in the award of tax credits so some of this income is yours to use as expenditure, which should cover your mobile phone and personal expenditure (clothing, hairdressing, toiletries etc).
I would advise you to stop paying any debts (catalogues and credit cards etc) as these will go into the DRO (which looks like best option for you.
When you do a DRO you will only need to declare your income and your expenditure, your wifes budget is of no importance, and her bills are her responsibility.

As I don't contribute to the household with not earning any money
But the household deposable income is over the £50 it is around the £300 mark but I have been informed that because I don't earn any money it should be ok.

you may find disposable income appears high due to cutbacks you have been forcing yourselves to make in order to pay people.

And due to me problems I will not be looking to start work again until my Panic attacks and other mental health problems are under complete control.

And I'm worried about the items in the house as we do own things like a LCD tv and laptop and other things but I'm worried that due to my problems that my family will have to go with out and the mental stress this is all putting upon me is lead to me being put on to yet more medication from the doctor as they don't want the hard work I have done to be undone.

Standard household items like these are not really assets to be concerned about, unless they have considerable value because they are exceptional items.

I'm already have panic attacks worried about if I need to go bankrupt how I would get to court as it is 35miles away and I can't travel buy public transport as the last time I did I had a major panic attack and it has scared me of travelling.

I have the paper work filled out for a Dro as myself and wife have spoke to the people at the National Debtline and they say I'm able to do one.. But I'm just lost and don't know what to do.

Follow the instructions NDL give you, I dont know their process but I imagine they will need some paperwork from you, and they will deal with setting it all up, and contacting you when they need to finalise certain things.

But it scares me when I read the people I owe can apply to the court to over turn it and I'm worried about being sent crashing back to square one again.

the creditors can only appeal to the making of the DRO if they feel there is something that means you are ineligible or you have broken the rules e.g. you secretly own a house, or your debt is actually £17000, or you borrowed all the money last week

So which would be best a Dro or Bankrupt.. Which would protect myself Mental wise and my family.

I think the DRO would be the easiest and cheapest option, and with your circumstances potentially staying the same for the next year then it could well be successful for you

And would I need a doctors letter to explain that my mobile is a much need life line for me (I'm not in any arrears with my phone and it is a new contract).

A mobile is an allowable expense providing you are no exceeding the guidelines on usage

I hope some of this makes sense. Sorry if it goes on to much

Please see my answers to your points above in red. It doesnt appear to me like you have much to worry about