Newbie - DRO questions

DebtWoes

Hi, apologies for double posting but I wasn't really getting responses in the IVA and DRO sub-section.

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Hi, I've been researching my debt options and I'm considering a DRO. It's difficult as my situation is quite changeable (never good!) and I'm considering going from full time to part time work (to help with mental health condition which has been classified as a disability). I have some quite specific questions relating to DRO, hopefully I'll be able to get some help

INCOME

1. Will it cause an issue if I'm seen to have gone from full time to part time work? If I decide to do this, the DRO would hopefully happen shortly afterwards.

2. Am I still allowed to make pension contributions whilst working? Will these be analysed...what sort of percentage is too high?

EXPENSES

3. Is there any guidance available on what sort of amounts are allowed for different types of expenditure? I always struggle with this. I have no records and I'm no good with numbers.

DEBT

4. In my debts I have a CCJ with a suspended attachment of earnings and council tax with a suspended attachment of earnings (have gone through the liability order and all of that...). Are these ok to be included?

GENERAL

5. Part of my debts are due to gambling and I still gamble heavily (bad bad bad bad bad). Will this cause a problem? Will they want to look at bank statements?

6. Is there any legislation relating to DROs that I can read? I've read the StepChange and National Debtline guides but was hoping to read the actual law on this.

7. Would I need to get new bank accounts, as with bankruptcy?

Thanks for reading, any help would be very much appreciated.

vlad

When my MIL went for a DRO a few years ago she initially got help and advice from CAB who were brilliant.

sourcrates

DebtWoes wrote: »

Hi,
Part of my debts are due to gambling and I still gamble heavily (bad bad bad bad bad). Will this cause a problem? Will they want to look at bank statements?

Hi,

Criteria for a debt relief order are quite strick, it is after all, a form of Bankrupcy.
One of the criteria for a DRO is that you must have less than £50 left after "essential" living expenses are deducted, money for gambling is not regarded as "essential", so if you want a DRO, you are gonna have to get help to quit the gambling first, otherwise it's not going to happen, I would assume that they would want to see 3 months worth of bank statements, as in an IVA.

Your CCJ can be included yes, your budgeting would be in accordance with specific guidelines, not sure about the pension.

This is as close to actual budget figures I can find :

http://www.squirrelism.net/related-topics/other-solutions-and-advice/what-are-considered-to-be-reasonable-living-expenses-when-applying-for-bankruptcy

Legislation info here :

https://www.gov.uk/options-for-paying-off-your-debts/debt-relief-orders

HappyMJ

sourcrates wrote: »

This is as close to actual budget figures I can find :

http://www.squirrelism.net/related-topics/other-solutions-and-advice/what-are-considered-to-be-reasonable-living-expenses-when-applying-for-bankruptcy

Those figures and guidelines are not accurate and should not be used.

For example Dental and Optical can and in many cases will be much higher than £15 for a couple. If they claim £10 for one adult is fair then wouldn't £20 be a fair figure for a couple. Dentist visits aren't a buy one get one free deal.

A prepayment certificate for NHS prescriptions is £104 per year each. A 6 monthly check up at a private dentist with a visit with the hygienist would cost £10 per month each (there's no requirement to use the NHS) or £18.80 every 6 months if you did have a NHS dentist. You could put up to £40 a month for a couple and it would be a fair figure. Even more if you wear glasses.

There is no limit for fuel. As long as you've got MOT's proving how much mileage you've done in the 12 months between MOT's then you can claim for enough fuel to get you that far using HMRC's advisory fuel rates as a guide. i.e Petrol engine over 2000cc and doing around 12,000 miles/year the HMRC advisory rate is 20p/mile so that would be £200/month. Fuel isn't just for business it can also be used for commuting, domestic and even picking up children from distant places.

Why is clothing £25 for one adult and £40 for two adults? It's not cheaper per person to buy for more people. I don't share my clothing with my OH. I need a minimum of £25/month as well.

sourcrates

HappyMJ wrote: »

Those figures and guidelines are not accurate and should not be used.

Didn't say they were accurate.

I said they were "as close" as I could find.

The idea was to give the OP ballpark figures to work out a budget.
Someone asked me the same question yesterday.

Despite a good search around, this is all I could unearth, I realise the figures need to be taken with a pinch of salt, and require the application of a little common sense also.

fermi

sourcrates wrote: »

Didn't say they were accurate.

I said they were "as close" as I could find.

The idea was to give the OP ballpark figures to work out a budget.
Someone asked me the same question yesterday.

Despite a good search around, this is all I could unearth, I realise the figures need to be taken with a pinch of salt, and require the application of a little common sense also.

Yes, but they are pretty wrong as an intermediary uses the CFS with the triggers figures.

In this sort of case I would say it's better to post nothing that to post something quite wrong, as it may give someone the wrong impression on their monthly surplus etc and make them think they won't qualify.

Any intermediary they consult will have the current correct figure and budget spreadsheet, and will go through their budget.

fermi

Other thread is here for reference, where a DRO intermediary has replied.

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