DRO granted but....what if

Polk

So the DRO has been granted. Not the ideal outcome, I would have preferred to pay off my debts but with my mental state and my urgent need to turn my life around it is the best route for me to take.

but I am now wondering - what happens if my financial circumstances improve? what if I'm paying less tax this year which means more in my back pocket?
clearly if that were true, then the rules are clear - I have to say so if my financial circumstances change.

in this scenario I can see the possibility of financial circumstances change due to an increase in the tax allowance and the DRO therefore failing due to the increased income resulting in more money that the threshold allows. This then means being back at square one - but with the added problems of being £90 lighter and defaults on all the debts. All before the DRO had a chance to operate.

?

tallyhoh

Not sure how much you earn but I am assuming you are on base rate tax of 20%. As the personal allowance is increasing from £9440 to £10000 this tax year I calculate you will receive an extra £110 over the year (someone will tell me if this is correct). That's approx £2.11 extra a week.


If you are concerned about this let them know.

fatbelly

If your surplus income exceeds £50 per month during the moratorium period, you should inform the DRO Unit.

eyeopener2

Lots of what ifs.

Best just to deal with the what are' s, the actual here and now rather than what may happen.

It probably won't, it possibly will. Who knows what may happen in the future.

If your circumstances change in the future, deal with it then. As they haven't changed, and let's face it, are unlikely to, you accept the DRO, and sleep at night.

That's all you have to do.

Polk

do they demand proof at any stage or does it rely on me telling them?

eyeopener2

What are the chances of your income increasing? The actual chances?

If you knew that things would improve, you wouldn't have gone into a DRO, but as you have, I take it you couldn't see any light at the end of the tunnel.

Has something suddenly changed?

fatbelly

Polk wrote: »

do they demand proof at any stage ?

They can but in practice they don't.

sourcrates

In order to still qualify for the DRO you must have no more than £50 left per month after essential bills have been paid, the trick is to make sure things stay that way, it only lasts 12 months so it should not be difficult to pay your bills and have no more than 50 quid left each month, it is an offence not to declare this to the official receiver so the key is creative accounting, "make sure" that is all you have left over, get my drift !!!