Ashamed to be back again

debt_doctor

Hello Pippa,


Your HB would have to be deducted from your rent which will put you in too much surplus for a DRO. You do have some spare room in 'communications and leisure' but not enough to get a DRO.
However, I wonder, on average, how often your daughter stays with you?
Can you average that out and let me know?


Just think that (if) a DRO is not possible, bankruptcy still is (with no repayments from your income) or by controlling the debt by a payment plan.


EDIT - SEE BELOW
DD

debt_doctor

At the bottom of your SOA you say that you have not included HB as income - but when I look at your total income you HAVE included it.


This changes things completely - and you would qualify for a DRO. Can you re- clarify your income that £1220 is ESA plus HB?
DD

Autumnella

I don't know what it is about step change discouraging DRO's They told me I wouldn't qualify too when I called a few years ago in desperate need of help, when everything else I read online said I did. When I called them it was 2 hours of my life wasted and I was in exactly the same position I was beforehand.

debt_doctor

Autumnella wrote: »

I don't know what it is about step change discouraging DRO's They told me I wouldn't qualify too when I called a few years ago in desperate need of help, when everything else I read online said I did. When I called them it was 2 hours of my life wasted and I was in exactly the same position I was beforehand.

Hi, The funding model of Step Change relies upon a commission return (or fair share agreement) from payments to creditors through DMPs and IVAs. The more collected, the higher the return payment from creditors.
DD

PippaGirl_2

debt_doctor wrote: »

At the bottom of your SOA you say that you have not included HB as income - but when I look at your total income you HAVE included it.


This changes things completely - and you would qualify for a DRO. Can you re- clarify your income that £1220 is ESA plus HB?
DD

.

Yes sorry for the confusion. The income is ESA and HB, HB being less than my rent due to under occupancy reduction. What that figure doesn't include is my PIP as people said that's not counted as income. Apologies for my mistake, so yes that income amount is ESA and housing benefit.

Thanks.

debt_doctor

Great! That means you qualify for a DRO on income grounds.
I never worry about negative statements - in your case as you said, you are going to put in your PIP as income, then whatever balance is left when you have covered the deficit, put that balance down as 'adult care needs'. That's to spend how you wish for dog walking or whatever you wish.
The standard thing debt advisers do is put PIP or DLA in as income and then take exactly the same amount out as 'care needs' - which effectively means it doesn't count as income.
Also I want you to reduce your vet bills down from £21 to £10. Not saying you can't actually spend it, just show as £10 - trust me!
Hope it goes well for you with National Debt-line, but in any event, keep us informed.
DD

luvchocolate

Great advice as always D.D.
Good luck Pippa let us know how you get on. x

PippaGirl_2

debt_doctor wrote: »

Great! That means you qualify for a DRO on income grounds.
I never worry about negative statements - in your case as you said, you are going to put in your PIP as income, then whatever balance is left when you have covered the deficit, put that balance down as 'adult care needs'. That's to spend how you wish for dog walking or whatever you wish.
The standard thing debt advisers do is put PIP or DLA in as income and then take exactly the same amount out as 'care needs' - which effectively means it doesn't count as income.
Also I want you to reduce your vet bills down from £21 to £10. Not saying you can't actually spend it, just show as £10 - trust me!
Hope it goes well for you with National Debt-line, but in any event, keep us informed.
DD

Oh that's such good news. Good advice I will make those changes. I doubt National debtline are open Sundays so I will phone them Monday.

Ive had an email from wonga saying theyre freezing my loan with them and won't be adding any interest or charges or make attempts to withdraw money from the bank.

PippaGirl_2

Long talk with National debtline this morning. I'm eligible for a DRO and they're sending me out the application pack. I'm told to stop the £1 payments to creditors which I've done. I've got to go to court to get an order from the court forbidding my current address being on public records to protect me from my violent ex who doesn't know where I'm living. I already have a letter from my GP verifying that fact and I'm hoping an EX160 ? will waive the court fee on income grounds. When I went BR I went on the register with my previous address. I'm sure it will be the same. The lady on the phone said the official receiver may question me about my debt because I've previously been BR before but at that was almost 6 years ago and my sole income is benefits she doubts very much I will be given any extra restrictions. Very helpful people. I just wish the process didn't take 10-12 weeks. The lady said almost all creditors back right off once they know you're applying for a DRO as they won't spend court money knowing they'd not get a return from it.

Hopefully all will go smoothly from now on. I wish I'd phoned National debtline first, I was in such a state after talking to stepchange.

Thank you everyone who's offered helpful advice and support.

debt_doctor

Hi Pippa,
That is good news from National Debt line.
The EX160 will exempt you from the court fee on the 'automatic exemption' of being on Income based Employment Support Allowance. No need for a calculation, just need to provide proof of your ESA.
If you are on contributions based ESA then you will need to do the calculation - but will still be exempt. Neither PIP or HB count as income when filling out an EX160.
DD