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Eligible debt for DRO

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Hello, since the recent collapse of my business I've been struggling with debt, to the point where I could no longer afford my rent.

I've looking at arranging an IVA as my debts are fairly substantial.
However I'm now starting to wonder if a DRO might be a better choice as I'm not a homeowner and have no assets to protect. However my concern is the eligibility of my debt. If I include my old student loan I owe more than £15,000. However without it I am within the boundaries of a DRO. Could anyone advise if an outstanding student loan will count towards the total debt owed for a DRO (I'm aware that a student loan cannot be taken into consideration when applying for a DRO, hence my thinking that maybe it also wouldn't be counted as part of my total debt)?

Also I'm a bit confused about the £50 left after monthly outgoings (part of the DRO requirements). It is the case that I have less than £50 left after each month, but this is largely due to the fact I am currently living off my overdraft (I am receiving a salary, it just doesn't presently pay off my overdraft - although each month it gets a little closer)

Any help would be greatly appreciated.

Comments

  • fermi
    fermi Posts: 40,542 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker Rampant Recycler
    Student loan debts don't count towards the £15K limit.

    Your overdraft would have to be scheduled in the DRO, so no longer being allowed to pay that off sounds like it might bump you over the £50 per month surplus limit?
    Free/impartial debt advice: National Debtline | StepChange Debt Charity | Find your local CAB

    IVA & fee charging DMP companies: Profits from misery, motivated ONLY by greed
  • greenfrog_2
    greenfrog_2 Posts: 10 Forumite
    Thanks for your help fermi. I've spoken to the debt helpline and they've confirmed that students loans are not applicable and that debt based outgoings do not count towards the requirements for a DRO
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