Debt relief order

john1986

looked into token payments and now im looking into the debt relief order as I can easily remove my self from the mortgage, how do these work I owe less than 15k, not a home owner, and have less than 300 pound in assets (I think) so can anyone tell me abit more about them ? I hear you pay nothing to your creditors for 12month then after that your debt is wrote off ? sounds to good to be true so if theres anywhere to ask im sure its here

Monkeyballs

Hi John,

You need to prove that you have less than £50 surplus income each month too, here is a link to a page on the Step Change website;

http://www.stepchange.org/Howwecanhelpyou/DRODebtrelieforder.aspx

MB

john1986

Monkeyballs wrote: »

Hi John,

You need to prove that you have less than £50 surplus income each month too, here is a link to a page on the Step Change website;

http://www.stepchange.org/Howwecanhelpyou/DRODebtrelieforder.aspx

MB

Thank you, how can they prove if you owe family money etc ? as you could easily adjust the figures to show that you have less than £50 surplus ? also if you live with your partner do they take her wage into consideration ?

Monkeyballs

Not a clue I'm afraid, but if you call Step Change (it's a freephone number) they should be able to help although someone who has been through it will likely be along shortly...

MB

longtermplanner

as I can easily remove my self from the mortgage

Really? It is usually pretty hard to do this.

And even if you do this, I think you may find that doing this bars you from a DRO. Guidance for Authorised Intermediaries (the person who sets up your DRO) says.

[FONT=&quot]If the debtor has given away any property or sold it for less than its true value in the last 2 years (a ‘transaction at undervalue’), this may affect the determination of their application.[/FONT]

how can they prove if you owe family money etc ? as you could easily adjust the figures to show that you have less than £50 surplus ?

All your debts have to go into the DRO, including any family debts, so the calculations of the £50 surplus will assume that you are not making any debts repayments at all.

also if you live with your partner do they take her wage into consideration

Not directly, but it will be expected that you only pay your share of the household bills and she pays hers.

longtermplanner

Sorry I meant to add that there is a seperate board for DROs: http://forums.moneysavingexpert.com/forumdisplay.php?f=159

National_Debtline

longtermplanner wrote: »

Really? It is usually pretty hard to do this.

And even if you do this, I think you may find that doing this bars you from a DRO. Guidance for Authorised Intermediaries (the person who sets up your DRO) says.

[FONT=&quot]If the debtor has given away any property or sold it for less than its true value in the last 2 years (a ‘transaction at undervalue’), this may affect the determination of their application.[/FONT]

Hello there,

Longtermplanner has made a really important point. if you were to simply take your name of a mortgage, it could well prohibit you from being able to go ahead with a DRO.

Very best wishes,

David @ National Debtline.