Dro advice

pieapple

Hello all, I am after some urgent advice please. I currently have debt in my name to the approximate value of £21 k. Ideally I'd like to avoid bankruptcy especially as the limit for debt relief orders has now been increased. One of my plans for getting the debt below £20k is to put all food shopping and petrol on a credit card in my husband's name thus freeing up cash to put towards debt. I just wondered if this would be allowed or would I in some way make myself ineligible for a dro if I did this?

Thanks in advance for your help

DorisTrousers

Your plan is nonsense really, isn't it? Technically, as long as you either make contractual payments, or pro rata, then you are not breaking any rules.

Depends on the state of your debts, if you are in default then maybe you won't be paying interest and can get them under 20k quite quickly. If they are not then it will take far more than 1000 in payments to bring them under 20k. In the meantime, you are deliberately saddling your husband with more debt and therefore higher payments.

In short, the best result you can hole for is to pay over 1000 pounds, plus 90, to avoid paying a maximum of 705?

Not really saving money is it?

pieapple

My reasons for wanting to avoid bankruptcy go far beyond the fee.
Maybe I should have worded things better. Using the credit card is part of my plan, not my only plan. I have various items to sell which would help me get comfortably under 20k. I am certainly not deliberately saddling my husband with more debt. He is very much in favour of this as right now we are in a real rut. I just wanted some friendly advice as it is currently keeping me awake at night.

fatbelly

Well there are advantages to a DRO over bankruptcy, which the op may think worth £385.

A car worth under £1000 is invisible in a DRO, maybe not in bankruptcy
Landlord not informed
Bank not informed (though they may find out e.g. Nat West)
Employer not informed & no tax code change
Courts not involved

Get advice on your particular circumstances. It may be that some debts are excluded and do not contribute to the total (fines, CSA, student loans, social fund). Or can be left out because they are statute barred or unenforceable. Or you may be able to reduce debts by reclaiming unfair charges.

If you do end up having to pay down debts, that must be done on a pro-rata basis so as not to show 'preference'

Keep posting if you have any more questions

pieapple

Thank you fatbelly x

DorisTrousers

Ok.

Be aware though that a landlord will be informed if there are any rent arrears, there isn't an option to leave anyone out.

Similarly, any overpayments of any benefits, gas, electricity, water and council tax arrears have to go in, so be mindful of that when you are "totting up" the total.