Considering a dro

MidnightMist

I need some advice.. I'm currently around 4-6k in debt the main ones being a credit card and a overpayment of benefit.
Things started spiralling out of control when I had to give up work to look after my two children as the costs of childcare was impossible to afford it was then when I started depending on credit for living costs. The debt on the credit card is rising month by month and finally decided to sort it out I did a quote on step change debt charity and they adviced best solution is a debt relief order as I'm not expecting to return to work until my two childen are both at school in 2-3 years from now. I pay my debts, some of the household bills (part of the rent, water gas electic tv licence and my contract phone and shopping) with my income from our tax credits,hb and Cb.
My partner pays for the rest of the rent council tax,his vehicle,phone and sometimes helps with food shopping he is also constantly in his overdraft. He earns around 15k a year with his job.
Although this will be a sole dpo for me I'm not sure if his finances will be involved because we live together.
I pay my minimum payments every month which has started coming out of the food fund.. I am wondering can I still make these minimum payments until the dpo gets approved or do I have to stop straight away as I would rather carry on paying what I pay until the dpo is approved.

Also I rent my current home and have just under 2 years left on the tenency will my dpo affect this I have looked on my tenency agreement and it does say something about bankruptcy but doesn't state dpo's or anything else. We already have a guarantor for this tenency and we always pay are rent on time never missed a payment (Rent is number 1 priority for us) I'm pretty good with my debts iv never missed a payment or anything it seems if I don't sort something out with my debt we will be in this situation forever.

My debt is sole and me and my partner don't share any credit we pay seperate household bills and have seperate bank accounts only thing that has both our names is our tenency and council tax.
Will his income and outgoings be involved in my debt?

Any advice on my questions are greatly appreciated!
I have recently this year been suffering with signs of depression but refuse to go to the doctor as I don't just want pills. (My mother takes medication so I know the side effects)

Thanks

MidnightMist

I forgot to mention I also spend on the credit to date but still pay lump of £100 off per month with the intrest and resending it bumps it up would this be a issue or do I have to stop spending for so mamy months before I apply for the dpo?

I have a argos store card with a small balance that I would like to pay off before I apply for the dpo if this is paid off fully do I have to declare this as a debt and if so will the card be cancelled as its quiet handy when I need to buy furniture or a new appliances as it has a buy now pay later which is perfect for me.

HappyMJ

A DRO (Debt Relief Order) is a mini Bankruptcy.

Your name will be listed on publicly searchable databases and future landlord will see you have declared yourself insolvent.

Is the overpayment of benefit just your sole debt? If your overpayment was from a claim in joint names they'll just go after the other person for the money so getting a DRO may not help if they would go after your partner instead.

If you have no income of your own then as long as you understand the consequences then I'd stop making any payments to your debts now and ensure the bills are paid.

Your partners income may be taken into account to determine his share of the household bills. You can either split all joint income 50/50 and split all the joint expenses 50/50 or you can declare his income and change the ratios. They might say you are responsible for paying for 40% of the household expenses from your half of the benefits that you get. It's not determined as who pays what. You need to split all the income evenly between you then add up all the joint expenses and pay an equal amount each towards them. The car can also be considered a joint expense even though it's in his name,

You can go to your GP and ask to be referred to a Mental Health team in your area where you can see specialists to discuss your depression. You do not need to take pills. Talking about your problems can be just as effective as pills.

HappyMJ

MidnightMist wrote: »

I forgot to mention I also spend on the credit to date but still pay lump of £100 off per month with the intrest and resending it bumps it up would this be a issue or do I have to stop spending for so mamy months before I apply for the dpo?

I have a argos store card with a small balance that I would like to pay off before I apply for the dpo if this is paid off fully do I have to declare this as a debt and if so will the card be cancelled as its quiet handy when I need to buy furniture or a new appliances as it has a buy now pay later which is perfect for me.

If you spend £100 a month and repay £100 a month I wouldn't worry about it as you aren't accruing any more debt. As soon as you apply for the DRO you must stop using any credit.

The Argos card will be cancelled you cannot use any credit for 12 months.

MidnightMist

MidnightMist wrote: »

I forgot to mention I also spend on the credit to date but still pay lump of £100 off per month with the intrest and resending it bumps it up would this be a issue or do I have to stop spending for so mamy months before I apply for the dpo?

I have a argos store card with a small balance that I would like to pay off before I apply for the dpo if this is paid off fully do I have to declare this as a debt and if so will the card be cancelled as its quiet handy when I need to buy furniture or a new appliances as it has a buy now pay later which is perfect for me.

But the Intrest itself is about £50 so I'm actually adding £50 or more each month which is why the credit card is creeping up Its impossible to pay anymore which is why I'm getting worried now as the the minimum payment is nearly at my max amount bare in mind this comes out if my food fund which it really shouldn't but the stress of debt collectors I can't handle right now.

MidnightMist

@Happy yes it was a joint claim but we are no longer with that council anymore and the debt arrangement is in my name and bank this debt I pay £20 off a month As a arrangement which is not massive. But the total was about 2k I'm not sure what it's gone down to now I would need to check.

Would this have to go on a dpo even if I'm happy to carry on paying outside of the dpo because it's not credit but an overpayment.
My main worry is the credit card that is creeping up. And I don't have income to cover it really I just make minimum to keep the nasty letters and debt collectors away

HappyMJ

MidnightMist wrote: »

@Happy yes it was a joint claim but we are no longer with that council anymore and the debt arrangement is in my name and bank this debt I pay £20 off a month As a arrangement which is not massive. But the total was about 2k I'm not sure what it's gone down to now I would need to check.

Would this have to go on a dpo even if I'm happy to carry on paying outside of the dpo because it's not credit but an overpayment.
My main worry is the credit card that is creeping up. And I don't have income to cover it really I just make minimum to keep the nasty letters and debt collectors away

An overpayment is a debt. It will be included. The council will go after the other person that was on the claim and get their money back. You won't owe anything any more but your partner will.

HappyMJ

MidnightMist wrote: »

But the Intrest itself is about £50 so I'm actually adding £50 or more each month which is why the credit card is creeping up Its impossible to pay anymore which is why I'm getting worried now as the the minimum payment is nearly at my max amount bare in mind this comes out if my food fund which it really shouldn't but the stress of debt collectors I can't handle right now.

I wouldn't worry about it. I do what you are doing as well to be able to have enough cash to meet the minimum payment due each month.

National_Debtline

Hi MidnightMist and welcome to the forum.


Just wanted to add my voice to that of MJ, who has already given you some very useful advice about Debt Relief Orders. It certainly sounds like you might benefit from one, especially as you don't envisage any major improvements in the next couple of years.


I would recommend that you stop any payments on the credit debts as soon as possible, in case they are perceived as showing a "preference" to certain creditors over others.


Get yourself a budget worked out and share it here if that helps; alternatively one of the free advice services can work one out with you over the phone - you'll need to speak to them in any case if you want to get a DRO application up and running. They're likely to ask for details of your partner's income and outgoings too - this is simply so that they can ensure you are only paying your fair share of household bills and nothing more.


Good luck


Dennis
@natdebtline

fatbelly

MidnightMist wrote: »

I am wondering can I still make these minimum payments until the dpo gets approved or do I have to stop straight away as I would rather carry on paying what I pay until the dpo is approved.

Also I rent my current home and have just under 2 years left on the tenency will my dpo affect this

I suggest you stop making payment to your debts and start making payments towards the £90 fee.

Nope, shouldn't affect your tenancy.