DRO Questions

Jasondad

After receiving advice from various charities, I'm seriously considering a DRO. I have a few questions:


- What paper work would I need to provide as a sole trader?
I set up as a sole trader last year, but haven't really traded. I have no income as a sole trader yet. Embarrassingly my only income recently has been from my family helping me out. They have covered my bills and will continue to support me if I go down the DRO route. I pretty much receive the funds in cash and through paypal deposits to my current account.


- What further paper work will be required apart from proof of income and a credit report?


- What do the guidance notes say in regards to assets? what would be classed as an asset?
For example, would I include personal belongings such as tools (£60), dumbbell set (£40), an old xbox console, etc?


- I am the registered keeper of an old vehicle that is sorn /off the road for many years due to MOT failure. It will be sold for scrap.

In the current state, I have no idea of value. If the car was road worthy (would require over £1000 of repairs), it would be worth approx. £600-£700 according to what they have sold at online auction.

My mother paid for the vehicle when bought and is the owner. Do I declare this as an asset in my DRO as I am the registered keeper?

The car I currently own is worth around £500-£600.

National_Debtline

Hi Jasondad


Replies to your queries in bold below.

Jasondad wrote: »

After receiving advice from various charities, I'm seriously considering a DRO. I have a few questions:


- What paper work would I need to provide as a sole trader?
I set up as a sole trader last year, but haven't really traded. I have no income as a sole trader yet. Embarrassingly my only income recently has been from my family helping me out. They have covered my bills and will continue to support me if I go down the DRO route. I pretty much receive the funds in cash and through paypal deposits to my current account.



If you've not been trading and thus generating no income, it will most likely just be a case of looking at your recent bank statements.

- What further paper work will be required apart from proof of income and a credit report?


See above


- What do the guidance notes say in regards to assets? what would be classed as an asset?
For example, would I include personal belongings such as tools (£60), dumbbell set (£40), an old xbox console, etc?


A vehicle worth less than £1,000 is permitted. In addition, other assets with a combined value of less than £1,000 will also be permitted. In practice, it is unlikely that you will fall foul of this threshold if the items you cite above are your most valuable.


- I am the registered keeper of an old vehicle that is sorn /off the road for many years due to MOT failure. It will be sold for scrap.

In the current state, I have no idea of value. If the car was road worthy (would require over £1000 of repairs), it would be worth approx. £600-£700 according to what they have sold at online auction.

My mother paid for the vehicle when bought and is the owner. Do I declare this as an asset in my DRO as I am the registered keeper?


All that matters is the car's current value, not its potential value. As it's fit for the scrapheap, it's not going to affect your eligibility for a DRO either way.

The car I currently own is worth around £500-£600.


This is fine for the purposes of a DRO. For the record, valuations are usually based on Parkers Guide http://www.parkers.co.uk/ as opposed to online auctions and other similar marketplaces.

Hope that helps. It's worth also having a read of our DRO fact sheet if you haven't done so already:


https://www.nationaldebtline.org/EW/factsheets/Pages/37%20EW%20Debt%20relief%20orders%20(DROs)/Default.aspx


Dennis
@natdebtline