reasonable housekeeping figures DRO

wba31

Hopelessly_Hopeful wrote: »

Still makes me sooo cross the NEDCAB one for single person is £299!

HHx

Isn't that the total cfs figure for housekeeping? Step Change break it all down into food, clothing, tobacco and I think that they have a school/work meals section from what I recall

Hopelessly_Hopeful

wba31 wrote: »

Isn't that the total cfs figure for housekeeping? Step Change break it all down into food, clothing, tobacco and I think that they have a school/work meals section from what I recall

I get £20 for meals at work

Don't smoke

£15 clothes

No where near and these figures are an increase on what I started with.

Interesting I wasn't allowed money to go swimming but I could have an allowance if I smoked!!!!

Depth_Charge

wba31 wrote: »

I understand what you're saying, but its a very empty budget. Nothing in for "other expenditure" from cfs, dentist, hairdressing, cinema trip every now and again, saving for Christmas and birthday expectations. I would hope a discussion is had to ensure someone budgets for those items

P.S. where can a house be rented for £350 a month? Please tell me, paying £600 for 3 bed in Walsall, my lodger is looking for places and is looking at £450 for 1/2 bed flats

Hi

Many thanks again for your reply and points

Its turning into a tricky one wba and the points & questions made and raised very valid ones in my opinion.

There could be any number of examples by the look of things.

If someone had these or similar figures and put them in the Debt Remedy then basically it will calculate the same I should imagine and give recommendations accordingly (I now have a copy of the example given in front of me).

The point being is - would this example person be eligible for a DRO on the £50 per month disposable income rule if the Common Financial Statement (CFS) was applied and I think I know the answer to that one.

The remedy makes suggestions to lower the food & expenditure etc, etc if you see what I am saying.

Yes there are many examples of Local Authority rented accommodation around the £350 per month mark I should think, there are local Authority & other Social Landlords who rent out flats and two bedroom houses that may even be actually lower than £350 per month.

It does not really matter anyway for the purposes of the example Debt Remedy input as lets say someone pays £500 per month rent and their income is £1150 per month instead of £1000 - would the recommendations on the Debt Remedy Tool be any different.

PS - the example put in by my other half where the £213 is replaced by the suggested £162 now recommends a Debt Management Plan and then bankruptcy as an alternative I believe - but again if the CFS were applied then the question has to be would this case be eligible for a Debt Relief Order on the £50 per disposable income rule?

Also another fair question on the above would be - could an IVA be appropriate for someone with £13500 of unsecured debt and £130 per month disposable income?

After looking further at this and reading the associated threads and posts then there may be serious questions that need asking and more so answering here.

Given some of the posts and points raised on a very important subject for those seeking advice with debt.

As I have said there are others having a very close look at some of the issues mentioned.

I really think that Stepchange will need to come in on this soon on this open forum as something tells me that this is whole issue will not be going away in a hurry.

Best regards & my genuine opinions and thoughts

DC

Depth_Charge

Hi

Thought this was worth mentioning in the context of this and other threads.

When someone petitions for bankruptcy they are asked (in my experience) by the court staff or the District Judge if they have had advice before taking the decision to go bankrupt and who or what agency gave this advice.

If someone petitions for bankruptcy with debts of less than £15000 then again in my experience they are asked the above AND if they have fully considered a Debt Relief Order which would obviously include if they met the eligibility criteria.

When advising someone with bankruptcy were the debts are less than £15000 the people I know (that includes me) draft an accompanying letter for the debtor to take to court along with their forms that confirms that a Debt Reief Order has been fully explored / advised and as to the reasons why the debtor does not wish to pursue and /or outlining the eligibility criteria that cannot be met (this would include the £50 disposable income rule if applicable)

We actually had a meeting with District Judges a few years ago at one of the local county courts we deal with the issues I have mentioned above when Debt Relief Orders first became available on this very subject. This is were we agreed to send the accompanying letters.

Now Debt Relief Orders were brought out along with other reasons to help people (formal insolvency solution wise) on low incomes and debts below £15000 at a much lower cost than bankruptcy - DRO £90 - Bankruptcy currently £700 including court costs.

The gap between the cost of the these two formal insolvency solutions is now arguably much wider than it was when Debt Relief Orders were first introduced with bankruptcy now a pretty dear affair fee wise with perhaps many people struggling to raise the fees and having to deal with any possible implications and delays.

Given some of the very fair points and questions raised and asked in this thread I am hoping that the Stepchange people would be kind enough to comment as I cannot see this going away in a hurry and if anything the scrutiny may increase I would imagine.

I presume that Stepchange have seen or are aware of this thread given some of the other posts

As I have already said there are other people looking closer at this and I understand they have run off a number of other example cases including comparison ones similar to actual enquires they have faced with the results being of interest.

My opinions & take as always

DC

inneedofsomehelp

Just to bob into this thread again.

I spoke to CCCS yesterday about my figures and they suggested a temporary repayment plan for 6 months, even tho earlier in the week they suggested a DRO. (suplus income (today) was £53 according to them but i know the shopping COULD have been given more of an allowance taking it to way less than £50)

I made it clear my income would not be going up after 6 months and with well over a dozen creditors, most of whom have already stated they will not freeze interest. I also made it clear my debt was fast approching the 15k mark and by making the token repayments my debt would be pushed well over 15k in the next six months with late payment charges, extra interest and the likes.

They told me if in 6 months my debt was above 15k i wouldnt be able to apply for the DRO.

IMO with my limited understanding and talking specifically of my personal circumstances in 6 months I wouldnt be able to look into an IVA on my income levels, a DRO would be out as i would owe more than i do now, a long term payment arrangement even with frozen interest would probably take me circa 30 years (say debt rose to 18k after all charges etc £18,000/£50 pcm repayments= 360 monthly payments, which is 30 years? is it not?)

so that leaves me with only bankrupsy as an option? If i take their advice of a temp payment arrangement. I could understand if my income was likely to go up soon and the DRO was at risk of being revoked but i made it clear my income is static for at least the next few years


I will be approaching the CAB again to submit my DRO application.

Anondebtadvisor

I agree you should speak to CAB about your DRO application asap, it does not seem you have been given very good advice, Stepchange have a representative posting on another thread perhaps he could pop on and see if he can help you further.

Good luck with your DRO and the future :-)

username200

Is there a up to date list of whats acceptable? Is it the CCS lists the most generous?

wba31

username200 wrote: »

Is there a up to date list of whats acceptable? Is it the CCS lists the most generous?

Step Change's guidelines are worked out differently to CFS. Cfs guidelines are available to advisors only, and group all non-priority expenditre to 4 sections, hence they can appear more generous.
You need to base your budget based on what you spend. Any advisor worth their salt will look at increasing areas if they think you are underspending (due to cutting back for creditors).

People to contact for advice are (in no particular order) your local CAB, Step Change 0800 138 1111 or NDL 0808 808 4000.

Depth_Charge

wba31 wrote: »

Step Change's guidelines are worked out differently to CFS. Cfs guidelines are available to advisors only, and group all non-priority expenditre to 4 sections, hence they can appear more generous.
You need to base your budget based on what you spend. Any advisor worth their salt will look at increasing areas if they think you are underspending (due to cutting back for creditors).

People to contact for advice are (in no particular order) your local CAB, Step Change 0800 138 1111 or NDL 0808 808 4000.

Hi

Sorry, I don't entirely agree

The Common Financial Statement figures are much more generous in certain areas.

With regard to the CFS figures being available to advisers only, well its the same advisers who should be working in the best interests of their clients. When someone seeks debt advice and a DRO looks like it would be an appropriate solution then they should be made aware at the outset if they meet the £50 per month disposable income criteria under the CFS figures. What is the point of adding this and that in the case of a DRO.

What is the point in the CFS if it is not to be used in this way?

The CFS is clearly mentioned in the DRO intermediary guidelines and is accepted by the O/R in the case of DRO's.

I just wonder how many people do not realise that they would be eligible for a DRO under the CFS figures and may have taken another route - for example - a Debt Management Plan.

Advice has to be independent, impartial, accurate, consistent and in the best interests of those seeking advice

On another point, have the latest Stepchange allowances been made public yet? the last time I looked at them, the section on clothing and footwear made astonishing reading.

All comments welcome

My Take

DC

National_Debtline

Depth_Charge wrote: »

I just wonder how many people do not realise that they would be eligible for a DRO under the CFS figures and may have taken another route - for example - a Debt Management Plan.

I think this is a really useful point. Just yesterday we had a client who was being urged to take an IVA by an advice agency (not Stepchange, by the way) as they had £50 per month spare and debts of around £13k. Whilst, of course, there are people where IVAs are absolutely the right way to go for their situation - That certainly wasn't the case with this individual.

Best wishes,

David