CAP say our joint income is too high for DRO?

sugarplum10

following advice on here DH has decided to go for a DRO as he has NO income. I am at uni full time and we live off my bursary (NHS degree) and the tax credits/child benefit. the only thing in DH name is the joint tax credits which is addressed to us both and we get the full element of CTC only- no WTC.
CAP say that as we have almost £300 free each month for our debts as a couple (i am jointly on the DMP too and some of the debts are mine) HE cant go into a DRO to clear just his debts???
now as i am the one that gets the additional £300 odd through my uni money surely what is joint through tax credits is for the kids expenses, food, travel etc
Im so confused as i though if you entered a DRO it was solely based on your 'income' and not that of both partners????
can anyone advise me on what is correct??:D

wba31

sugarplum10 wrote: »

following advice on here DH has decided to go for a DRO as he has NO income. I am at uni full time and we live off my bursary (NHS degree) and the tax credits/child benefit. the only thing in DH name is the joint tax credits which is addressed to us both and we get the full element of CTC only- no WTC.
CAP say that as we have almost £300 free each month for our debts as a couple (i am jointly on the DMP too and some of the debts are mine) HE cant go into a DRO to clear just his debts???
now as i am the one that gets the additional £300 odd through my uni money surely what is joint through tax credits is for the kids expenses, food, travel etc
Im so confused as i though if you entered a DRO it was solely based on your 'income' and not that of both partners????
can anyone advise me on what is correct??:D

You are right that it needs 2 sole applications for you to both do a DRO, and the budget would be split (you dont put the entire income and expenditure on both - well i dont anyway) but split it depending on what income is in whose name. If no income is in your husband's name on a DRO his income is £0 and his expenditure is £0.

I am concerned at how you have a £300 surplus off uni bursary, tax credits and child benefit. have you fully budgeted for all you need to spend, or has your budget been based on what you were spending prior to getting advice?
why not contact another free advice agency and see what they say? CAB, Step Change or NDL are the other free advisors...

Anondebtadvisor

I think you have had some poor advice and agree with the OP that you should seek alternative advice :-)

National_Debtline

wba31 wrote: »

You are right that it needs 2 sole applications for you to both do a DRO, and the budget would be split (you dont put the entire income and expenditure on both - well i dont anyway) but split it depending on what income is in whose name. If no income is in your husband's name on a DRO his income is £0 and his expenditure is £0.

This is precisely how our intermediaries would calculate a budget for a DRO. Given the information provided I too can't see why a DRO wouldn't be possible. Do consider getting a second opinion.

Best wishes,

David @ National Debtlline.