Applying for DRO

Familyman50

Hi, I am married with 2kids and another on the way.

We have debts just over 12K and are finding it a real struggle. Thinking about a DRO for a while now and have now decided its the best option.

Im sure that we have less than £50 left every month but when I fill in the outgoings form it looks like we have more than £50. I suppose there are all sorts of other things the money goes on.

wba31

Familyman50 wrote: »

Hi, I am married with 2kids and another on the way.

We have debts just over 12K and are finding it a real struggle. Thinking about a DRO for a while now and have now decided its the best option.

Im sure that we have less than £50 left every month but when I fill in the outgoings form it looks like we have more than £50. I suppose there are all sorts of other things the money goes on.

Have a conversation with a free debt advice provider, mention you are looking into a DRO and ask them to tell you why you are not suitable if they say so.

Step Change Debt Charity - 0800 138 1111
National Debt Line - 0808 808 4000
Visit your local CAB

Familyman50

I have all the forms, Im just going through them all now.

Familyman50

Can I ask if these numbers seem reasonable per month and if any are too much for a family of two kids and another on the way soon?

C,Tax 40
Gas 40
Elec 40
Watr 40
tv lic 12.12

home phone 30
mobile 50

transport 120

food 500
clean toiltries 10
newspaper 5
tobaco sweets 40
alcohol 20
laundry 40
clothing 100
nappies 30
pet food 10

hairdressing 10
sat/internet 20
work meals 65
school trips/pocket money 10
lottery 10
kids activities 25
gifts 10
vets bills 10

I dont know where else it all goes but with these numbers I still have just a little over £50 left out of my income. In reality we do not have any left.

Which of these could go up do you think, and are any too high?

bell123321

Have a look at the following website. It lists a guide for each section that is counted as reasonable living expenses and how much per couple then per child.

http://www.debt-relief-orders.com/resources/calculating_a_budget.asp

Familyman50

Im all ready but national debtline say they have a 5-6 week waiting list. So I am now on the list, waiting.

Shall I tell me creditors this when they keep calling?

bell123321

Familyman50 wrote: »

Im all ready but national debtline say they have a 5-6 week waiting list. So I am now on the list, waiting.

Shall I tell me creditors this when they keep calling?

Try Stepchange when I went to stepchange they did not have a waiting list, they went through everything over on the phone then sent the forms for me to check. I then had to get a copy of my experian report for step change and send them paperwork, who then when the paperwork was all ready asked me to get up to date balances and then submitted it after I made the £90 payment.
Step change was great for me and very nice about it all and was happy to speak to me if I had any questions.

I would not tell your creditors (that was what I was advised). There is a template you can send them offering just £1 payments for now.

National_Debtline

Familyman50 wrote: »

Im all ready but national debtline say they have a 5-6 week waiting list. So I am now on the list, waiting.

Shall I tell me creditors this when they keep calling?

Hi Familyman

I wouldn't talk to your creditors, full stop. They may simply chase you harder if they think they have limited time to act. Please do not be tempted to pay anything their way.

I can't tell from your post whether you have sent your forms back to us yet. You are free to use whoever you wish to arrange your DRO, either way.

Best wishes

Dennis
@natdebtline

wba31

Familyman50 wrote: »

Can I ask if these numbers seem reasonable per month and if any are too much for a family of two kids and another on the way soon?

C,Tax 40
Gas 40
Elec 40
Watr 40
tv lic 12.12

home phone 30
mobile 50

transport 120

food 500
clean toiltries 10
newspaper 5
tobaco sweets 40
alcohol 20
laundry 40
clothing 100
nappies 30
pet food 10

hairdressing 10
sat/internet 20
work meals 65
school trips/pocket money 10
lottery 10
kids activities 25
gifts 10
vets bills 10

I dont know where else it all goes but with these numbers I still have just a little over £50 left out of my income. In reality we do not have any left.

Which of these could go up do you think, and are any too high?

The lottery is the only thing I would raise concern with. If you were on a DRO and won more than £300 then the order would be revoked. Not an issue if you win more than your debt level, but if you didn't win enough to even make settlement offers you would be back at square one. Some advisors would argue that the point of a DRO is that you are declaring that you are physically unable to pay your debts back at all, therefore the lottery is something easy to cut out

fatbelly

You don't pay anything to your rent?

No contents insurance?

ihavealotofquestions

I've read the criteria for the DRO which states I must not have favoured one creditor over another (i.e. paying back family who I have borrowed from before a credit card). I have done exactly this - I borrowed around £1500 from my parents and felt really guilty so paid them back over two months through working lots of overtime - I still havent paid anything to my other creditors. Will this definately mean I cant get a DRO?