DRO or IVA???

mamanono

Hi, I finished my degree last year and my husband has an untreatable illness, as such we live on his small disability payments, esa and child tax credits. Our debt since my student loan has stopped has got way over our heads to the tune of some £13k.

I was put in touch with step change when I spoke to one of my creditors about not being able to meet payments this month. I had a phone call with Stepchage and we went through budgets and ect, all looked okay for the debt relief order. I received the paperwork and called yesterday to confirm something to be told that looking at my budget I'm at the top limit of all the categories and they don't count (as the previous phone call had) after school clubs for my children as we're not working (they give me a much needed break as I'm sole carer for my husband) and children's pocket money (3 x £5 a month).

Found it really distressing as the woman on the phone just met everything I said thereafter with a stony silence. She said I needed to look at an IVA. I ended the call, upset and completely bewildered. I'm willing to go down the route of an IVA but I'm feeling really confused about if that is actually the best option for me.

I find it hard to believe with us on the poverty line basically that we have as she said £100+ surplus a month!

fatbelly

Find another Competent Authority.

CAB still do most DROs and have the most Intermediaries

If you genuinely don't have £100 surplus per month it would be stupid to try to set up an IVA on 13k debt. If your only income is benefits, I would be surprised if you didn't qualify for a DRO, at least on the surplus criterion.

DorisTrousers

The DRO Unit will not question any items of expenditure that fall within the trigger figures of the Common Financial Statement which, as has been discussed many times on this forum, bear no real relation to the guidelines that StepChange use, which are their own. What you spend your own money on within an expenditure category is up to you, so I can only echo the advice to find someone else to help you.

Hopefully, this type of nonsense will be a thing of the past if and when the new Standard Financial Statement is brought in. StepChange and creditors alike will probably not like it, but they may (again, hopefully) be forced to implement it as well, so that people in need get the same advice and help everywhere rather than the lottery that seems to exist now.

Former_StepChange_Laura

mamanono wrote: »

Hi, I finished my degree last year and my husband has an untreatable illness, as such we live on his small disability payments, esa and child tax credits. Our debt since my student loan has stopped has got way over our heads to the tune of some £13k.

I was put in touch with step change when I spoke to one of my creditors about not being able to meet payments this month. I had a phone call with Stepchage and we went through budgets and ect, all looked okay for the debt relief order. I received the paperwork and called yesterday to confirm something to be told that looking at my budget I'm at the top limit of all the categories and they don't count (as the previous phone call had) after school clubs for my children as we're not working (they give me a much needed break as I'm sole carer for my husband) and children's pocket money (3 x £5 a month).

Found it really distressing as the woman on the phone just met everything I said thereafter with a stony silence. She said I needed to look at an IVA. I ended the call, upset and completely bewildered. I'm willing to go down the route of an IVA but I'm feeling really confused about if that is actually the best option for me.

I find it hard to believe with us on the poverty line basically that we have as she said £100+ surplus a month!

Hi mamanono,

I hope you don’t mind me jumping into this thread.

I’m sorry to hear you ended the call to the advisor feeling confused about your situation, and that you found the advisor’s manner distressing. This is never something we like to hear has happened, and we’d like the opportunity to put this right. If you email your reference number and contact details to moneyaware@stepchange.org I can arrange for a colleague to look into this and get back in touch with you.

Alternatively, if you'd like to make a complaint you can find the details about how to do so here: http://www.stepchange.org/Legal/Complaintsprocess.aspx.

It seems unusual that pocket money or after school activities would affect your eligibility for a DRO, but without knowing the ins and outs of your situation I wouldn’t be able to say more than that.

Ultimately it’s more important that your budget works in real life rather than on paper, so if you don’t think the budget fits your situation I’d suggest you give us a call and we can take another look at your budget and re-assess our recommendation.

I’d like to apologise again for the distress this situation has caused you – let me know if this has addressed your concerns.

Kind regards,

Laura

Depth_Charge

DorisTrousers wrote: »

The DRO Unit will not question any items of expenditure that fall within the trigger figures of the Common Financial Statement which, as has been discussed many times on this forum, bear no real relation to the guidelines that StepChange use, which are their own. What you spend your own money on within an expenditure category is up to you, so I can only echo the advice to find someone else to help you.

Hopefully, this type of nonsense will be a thing of the past if and when the new Standard Financial Statement is brought in. StepChange and creditors alike will probably not like it, but they may (again, hopefully) be forced to implement it as well, so that people in need get the same advice and help everywhere rather than the lottery that seems to exist now.

Hi

Hear, Hear

Common Financial Statement (CFS) info below

http://www.cfs.moneyadvicetrust.org/


DC

Depth_Charge

StepChange_Laura wrote: »

Hi mamanono,

I hope you don’t mind me jumping into this thread.

I’m sorry to hear you ended the call to the advisor feeling confused about your situation, and that you found the advisor’s manner distressing. This is never something we like to hear has happened, and we’d like the opportunity to put this right. If you email your reference number and contact details to [EMAIL="moneyaware@stepchange.org"]moneyaware@stepchange.org[/EMAIL] I can arrange for a colleague to look into this and get back in touch with you.

Alternatively, if you'd like to make a complaint you can find the details about how to do so here: http://www.stepchange.org/Legal/Complaintsprocess.aspx.

It seems unusual that pocket money or after school activities would affect your eligibility for a DRO, but without knowing the ins and outs of your situation I wouldn’t be able to say more than that.

Ultimately it’s more important that your budget works in real life rather than on paper, so if you don’t think the budget fits your situation I’d suggest you give us a call and we can take another look at your budget and re-assess our recommendation.

I’d like to apologise again for the distress this situation has caused you – let me know if this has addressed your concerns.

Kind regards,

Laura

Hi Laura


If you don't mind me asking have you any comments on the Common Financial Statement and expenditure allowances with regard to Debt Relief Orders?

DC

Former_StepChange_Laura

Depth_Charge wrote: »

Hi Laura


If you don't mind me asking have you any comments on the Common Financial Statement and expenditure allowances with regard to Debt Relief Orders?

DC

Hi Depth Charge,

Thanks for your question. As my role is to answer debt-related questions on these forums, I'm not in a position to discuss charity policy. However our press team should be able to help with your query. You can get in touch with them at press@stepchange.org

Kind regards,
Laura

DorisTrousers

Good try DC.

Personally, I can't think of a question that is more debt related than that one, but you are more likely to get information from North Korea...

Borrowing your phrase, just my take.

fatbelly

You guys ...

Depth_Charge

StepChange_Laura wrote: »

Hi Depth Charge,

Thanks for your question. As my role is to answer debt-related questions on these forums, I'm not in a position to discuss charity policy. However our press team should be able to help with your query. You can get in touch with them at [EMAIL="press@stepchange.org"]press@stepchange.org[/EMAIL]

Kind regards,
Laura

Hi Laura

Thanks for the reply

I'm astonished that you seem to be saying it was not a debt related question and on such a crucial and vitally important area for anyone considering their long term options and solutions for dealing with debt (which gets raised on here time and time again)

Incredible really considering the latest FCA drive for full independent impartial advice for the customer.

Its a hot one on the debt advice sector circuit and has been for a while so we shall have to see what happens there

If you are looking in [EMAIL="press@stepchange.org"]press@stepchange.org[/EMAIL] (which I'm pretty sure you will be) would you consider filling us in on here?

Just my take as always

DC

Depth_Charge

DorisTrousers wrote: »

Good try DC.

Personally, I can't think of a question that is more debt related than that one, but you are more likely to get information from North Korea...

Borrowing your phrase, just my take.

Hi DT

Not sure if you will agree (but I think you might) - isn't it true that you have been borrowing stuff off me for years and made some your own so to speak:) and despite many posts to the contrary, secretly you agree with DC's 'take' on IVA's as well:)

That's my take anyway:)

DC