Dro help

NJ_

Hi all new here an in need of some advice, recently me and my wife have been speaking with some from are local council and with the CAB unfortunately due to work commitments I couldn't attended the appointment and m after a little bit of advice


between me and my wife we have about £10000 worth of debt ranging from credit cards doorstep lenders council tax rent areas and various other things my main problem is car finance, I own a car that's worth about £800 my wife's car is on finance with £6000 still owed on it and the cars worth about £4000 I don't want to add the car to dro as I will not be able to afford another car and with out 2 cars 1 of us would have to give up work which would only add to dedt problems is there any way I can leave the car fianc! off the order any help would be appreciated

Johnsmith2016

You cannot have a car valued at more than circa £1000 in a DRO. So the car would go. Post up a SOA as I'm sure with a decent budget you may be able to avoid something as drastic as a DRO with the level of debt.
In a DRO you can only have £50 free left over after all domestic needs, with the car finance gone you would possibly be above this amount so would not be able to do a DRO.
Do you own your own house ?
10k debt (is relatively small to others on here) so I'm sure there is a easier solution with 2 adults working, and 10k debt, with a car worth 4K the debt is only 6k if you sell the car .
My advice sell the car get a cheap runabout for 12 months whilst you deal with this debt.
Is your credit score bad? Could a family member get a loan to consolidate all these debts in one low Apr payment? Just some ideas . Did he CAB reccomend a DRO for your situation?

Johnsmith2016

As an example if you or a family member can get a loan it could look something like this

M&S loan 10k over 6 years (I've picked 6 years as this is an alternative to the 6 years a DRO will damage your credit file) = £150 a month - (and you keep the car) is this less than your currently paying out?
Or my best advice would be sell the car and get a runabout
M&S loan 6k over 6 years same as a DRO default "= £93 a month .

sourcrates

Hi, you can't have a debt relief order when you own a car worth more than £1000.

You cannot sell the car, then apply for a debt relief order, as that is disposing of assets, and any DRO application under those circumstances, would be refused.

You need to look for another solution.