New to MSE, currently considering a DRO..

ChrisW73

Hi everyone!

As this is my first post on MSE I'd just like to say a big hello to you all. :-)

Okay, so I've been browsing around trying to find a solution to a debt problem my OH and I are spiralling down into, and thanks to this forum I think a DRO could be a possible solution for us.

However there are a couple of issues I think could be a stumbling block for us, so I'm hoping that one of the clever people here may be able to clarify them for us.

Last year in a bid to try and get control of our finances we took a joint loan of £15,000 with the intention of consolidating our outgoings for credit cards, catalogues etc, which turned out to be not the best idea in the world. The balance now stands at around £13k.

In the event that we both took individual DROs at the same time, how would this debt be assigned? Would we both have to list the total loan amount or would we split it down the middle? If we both had to list the total a DRO would be unworkable for us.

The other issue is the car. It's in my name and is apparently worth about £1500. Having the car is essential for getting OH to and from work, however I see that a car has to be worth a max of £1000 to qualify for a DRO. What would I be allowed to do in this situation? signing it over to a relative feels like it would be frowned upon. Do I need to sell it beforehand? But then if I did that would I get in trouble? Really not sure on this point.

Any advice would be massively appreciated, as the stress is becoming overwhelming. Thanks. :-)

debt_doctor

Hi,


The 13k loan would appear as 13k in full on each of your DRO's.


Your car currently excludes the owner from a DRO. The car can be sold, a cheaper one obtained and the surplus monies spent in a reasonable manner.


Have you checked the car's value on Parkers Guide?


EDIT sorry, does full 13k each take you out of DRO? - only bankruptcy would then offer chance of write off - is any of your other debt statute barred or HP?


DD

ChrisW73

Hi, thanks for the response.

I have indeed checked Parkers, which is where I got the value of the car from.

Sadly though the point is moot, as having to have the total amount of the loan on both DROs pushes us both over the £15k limit once we apply the rest of the debts we have. I just wish I'd known about DROs back then before taking out the loan... :-(

longtermplanner

Then you need to look at bankruptcy as an option, although there may be a fall back that the DRO limit of 15k is increased sometime next year.