Seriously considering a DRO but how does it work please?

michellen34

I've very stupidly got our family in debt or me at least and I'm struggling to repay it all now.
I'm considering a DRO but don't really understand it. I have debts with catalogues,(4) doorstop lender and another high interest loan through oakam. I also have a loan through my local credit union and save with them too (I have under £200) savings. Would my credit union loan have to go under the DRO? I'd still like to save with them if possible? Also what happens with HP please?
My partner and I get Dla for two of our children and also carers allowance. Do I state both amounts in my partners name or is it just mine?
Sorry for all the questions. I've tried looking online for the info but can't seem to find any answers.

Thank you in advance

fatbelly

I think most of the answers are in here

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

If not, the full guidance notes are available online

http://www.adviceuk.org.uk/wp-content/uploads/2013/06/Intermediary-guidance-v14.doc.pdf

michellen34

Thank you very much

DorisTrousers

The savings would be offset against the debt with the credit union, you will not get those back, however the balance of the loan is then included.

You may wish to open a new savings account, maybe with the post office?

michellen34

DorisTrousers wrote: »

The savings would be offset against the debt with the credit union, you will not get those back, however the balance of the loan is then included.

You may wish to open a new savings account, maybe with the post office?

Thank you. I phoned national debt helpline last night and they said my best bet would be self negotiations as I wanted to keep some of my hire purchase items eg fridge freezer
So I'm not sure what I should do now to be honest

HappyMJ

michellen34 wrote: »

Thank you. I phoned national debt helpline last night and they said my best bet would be self negotiations as I wanted to keep some of my hire purchase items eg fridge freezer
So I'm not sure what I should do now to be honest

A fridge freezer would be considered an essential household item. i.e you need it to preserve food and not having a fridge freezer would double your food bill. You can keep it as an expense.

If you had HP for a non essential item such as a TV you would be expected to return the item.

fatbelly

...or get a third party to fund the HP payments.

I'm glad I linked to the guidance notes earlier as the rules about HP are complex and I have to check them every time this crops up.

But they are quite generous and I am surprised you can't work around them and get a DRO.

The other thing to check is that the things you think are on HP are actually on HP and you are not just repaying a loan.

michellen34

fatbelly wrote: »

...or get a third party to fund the HP payments.

I'm glad I linked to the guidance notes earlier as the rules about HP are complex and I have to check them every time this crops up.

But they are quite generous and I am surprised you can't work around them and get a DRO.

The other thing to check is that the things you think are on HP are actually on HP and you are not just repaying a loan.

Ooh I have no idea? I have a fridge freezer from buy as you view and a TV and laptop from bright house?
I'd have been able to manage if I hadn't of gone absolutely stupid with catalogues and loans. I've certainly learned my lesson and I will never get in to this situation again. Been the worst few weeks ever
Thank you for your help

fatbelly

michellen34 wrote: »

Ooh I have no idea? I have a fridge freezer from buy as you view and a TV and laptop from bright house?
I'd have been able to manage if I hadn't of gone absolutely stupid with catalogues and loans. I've certainly learned my lesson and I will never get in to this situation again. Been the worst few weeks ever
Thank you for your help

Looks like those 3 items are on hp.

The fridge is ok to keep, with payments as eligible expense.

I guess ultimately you may have to judge whether its worth losing a dro for the sake of a tv and a laptop