DRO question

cb1903

Hi all,

I spoke to an adviser at National Debtline about applying for a DRO and they went through my budget with me but they took my partners income into consideration, then advised we'd need to pay double the fee so I'm assuming we'd be applying separately. If my partner applied for a DRO he's most likely be declined as he only has one debt and I'd like him to be kept separate as he doesn't need his credit rating affected by my debts, most of which I built up before we met.

If I was to apply by myself do I just split all the bills and household expenses by 2? We earn the same amount every month, and have always shared all bills (including my debts, which seems unfair) But as we fit the criteria as a couple, surely by just splitting things 50/50, I'll still qualify and only have to pay the fee once. All the debts are in my name, so it makes sense for me to apply alone, unless they will use household income (as I say, we both earn the same amount, but If he was to get a payrise as he started work before me, I wouldn't want to be accused of trying to keep it quiet.)

Many Thanks!

fatbelly

If you're using an intermediary at National Debtline you might want them to run through things again with you as you sound a bit confused.

You can only apply in a sole name. Sorting out how to present your income/expenditure when you live as a couple is something that your intermediary can advise on (note how I sidestepped that one!).

Regarding your partner, it sounds like he has one small debt. Now there is no minimum for a DRO but does he really need one? Could he just do a payment plan?

His credit file already WILL be affected by yours if you have any joint financial product (loan, bank account, not mortgage obviously)

Have you read the ND factsheet?

Factsheet Debt relief orders

cb1903

Thanks for the reply,

There's absolutely no need for my partner to apply for a DRO since he's paying off his debt quite easily, it's me who has all the problems.

When I spoke to the adviser they didn't say anything about me applying on my own, I think they just assumed that we had joint debts, which none of them are. I understand it now, I'm just waiting for the form to arrive in the post and I'll fill it in as a single applicant, halving all the household bills and costs.

Thanks for your help!

National_Debtline

Hi there cb

I think fatbelly has already identified a couple of the misunderstandings that might have occurred when you spoke with our adviser.

There is NO obligation on your partner to do a DRO just because you want one. It is, however, necessary to do a joint budget, so that we can work out what % of the household income you earn, so that in turn we can work out what % of the household bills you should be paying.

We cannot just split the bills 50/50 unless you are both earning exactly the same amount, as this would give an inaccurate picture of what your finances as an individual look like. For example, if your partner earns more than you, then they would cover a greater share of the household bills on a joint budget.

In summary: doing a joint budget is NOT the same as doing a joint DRO. Please ensure that you have given details of income/expenditure for the whole household when you return your application.

To develop on what fatbelly has said regarding your credit ratings - if yours and your partner's are not already linked, your DRO will change nothing.

I hope this makes things clearer but if not, please call us back before returning your application.

Thanks

Dennis @NDL

wba31

National_Debtline_representative wrote: »

Hi there cb

I think fatbelly has already identified a couple of the misunderstandings that might have occurred when you spoke with our adviser.

There is NO obligation on your partner to do a DRO just because you want one. It is, however, necessary to do a joint budget, so that we can work out what % of the household income you earn, so that in turn we can work out what % of the household bills you should be paying.

We cannot just split the bills 50/50 unless you are both earning exactly the same amount, as this would give an inaccurate picture of what your finances as an individual look like. For example, if your partner earns more than you, then they would cover a greater share of the household bills on a joint budget.

In summary: doing a joint budget is NOT the same as doing a joint DRO. Please ensure that you have given details of income/expenditure for the whole household when you return your application.

To develop on what fatbelly has said regarding your credit ratings - if yours and your partner's are not already linked, your DRO will change nothing.

I hope this makes things clearer but if not, please call us back before returning your application.

Thanks

Dennis @NDL

The OP has already said that they earn the same? do they still have to go through all this?

If my client is not wishing to include partner's income but verbally confirms the approximate level, who am i to start insisting on anything, providing the contribution to the budget doesnt look rediculous?

National_Debtline

Hi again

Re: the question of asking for whole household figures when only one of the couple is applying:

This is how we choose to do things as an Intermediary (IM). In our experience, applications submitted to the Insolvency Service are more likely to be approved by taking this approach, as it helps us ensure we have ascertained the applicant's proportion of disposable household income as accurately as possible.

Other IMs may approach such situations differently, but we cannot speak for them.

Dennis @NDL

fatbelly

National_Debtline_representative wrote: »

Hi again

Re: the question of asking for whole household figures when only one of the couple is applying:

This is how we choose to do things as an Intermediary (IM). In our experience, applications submitted to the Insolvency Service are more likely to be approved by taking this approach, as it helps us ensure we have ascertained the applicant's proportion of disposable household income as accurately as possible.

Other IMs may approach such situations differently, but we cannot speak for them.

Dennis @NDL

In practice, Dennis, I do the same...

But if it causes a problem I wouldn't insist on it

I do find my clients usually quite open about everything!

cb1903

Thanks for all the replies.

I've done the budget based on both our incomes and the usual household bills. As we both earn the same it's easy enough for anyone to work out we share bills 50/50. I've only done the single application too.

While filling out the budget I'd just like to check to see if any of my figures seem unreasonable, the lady on the phone seemed ok with them, but I just want to be sure.

Sky (broadband, phoneline and basic TV) £45
Public Transport (my partners commute to work) £102
My mobile £40 (I can't do anything about this until the end of the month unfortunately)
Food, toiletries and cleaning (family of 3) £448
Hobbies and Leisure £107

I'm sure all my other figures are fine, but I'd like to be sure these are ok.

Also, I'm pregnant, so I need to start buying baby stuff, is it OK to put that under nappies and baby items even though I don't actually have the baby yet? That sounds silly now I've typed it out, but I want to make absolutely sure I'm doing this right.

Thanks so much for your help!

sacha28

Just so you know.....whoever it is that puts the figures together allow £600pm for a family of 3 for food. Although we spend nowhere near that, we were allowed to put the figure up to that to incorporate some other expenses that are frowned upon (like the £10pm I spent (given up now) on tobacco and £10pm on a magazine delivery).

I'm pretty sure that this will increase seeing as you are pregnant. Have you included your dh's mobile costs too? I had to put oh's down as it is a household expense, this would double the amount you spend (presumably).

Oh and another thing.....is your mobile phone on contract? Be prepared for it to be disconnected. I was with Virgin who, despite me never missing a payment, just decided to disconnect my contract because, for a reason still not known to me, they were informed of my DRO and saw me as too much of a risk (their actual words!). They aren't even named on the DRO so god knows what happened there and it left me in a right communications mess!!