DRO or Bankrupcy ?

Gumball123

Hello, I need some help and advise from anyone who is willing to help. I am about 16,000-17,000 in debt and I am having to use my sons money to pay it off. I am on very low income and soon we will soon be unable to pay anything off completely.

I owe money to multiple companies. Personal loan, Gas, Electric, Store Cards, Credit Cards etc. My sons money currently goes into my account but he is over 18, but is on PIP and ESA, we use his money to pay off any default monthly payments which is becoming hard and bills are stacking up higher and higher along with interest.

I am divorced, unemployed and in social housing. I have no valuable assets, the car is a motability car registered to my son which I drive. The house we are renting from a housing association.

We are in a bad way going day to day knowing if we can afford food this week.

I am unsure on the best way forward? I have seen DRO's and are wondering if this would be suitable or even bankrupcy in worse case scenario? It would be great to get this off our chests and be able to start living again and avoid credit. Any advise would be highly appreciated.

Thanks a lot!

sourcrates

Hi,

DRO eligibility.......

you've less than £50 a month spare income. (before any debt repayments) you've less than £1,000 worth of assets. you've lived or worked in England and Wales within the last 3 years. you haven't applied for a DRO within the last 6 years.

You can have a car worth £1000 or less (would need to check if a mobility vehicle was exempt from this rule).

Once approved, life goes on as normal, after 12 months, your debts are written off.


Bankruptcy eligibility.......

none really, you just need to be able to afford the fee, though easier now than ever before, a DRO would be a lot less invasive if you meet the criteria, if not, then from what you've said, bankruptcy would be the option.

However, you might be able to tackle his by a DMP instead, depends on your circumstances, why not fill in an SOA (over on the debtfeewannabe board) this will give us more information, in fact i`ll move your post over to that forum, as you will get more responses.

SOA calculator here :

http://www.stoozing.com/calculator/soa.php

Gumball123

Thanks a lot for the info.

____________________

Estimate SOA

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 1
Number of cars owned.................... 0

Monthly Income Details
Monthly income after tax................ 0
Partners monthly income after tax....... 0
Benefits................................ 240
Other income............................ 62
Total monthly income.................... 302


Monthly Budget Summary
Total monthly income.................... 302
Expenses (including HP & secured debts). 565
Available for debt repayments........... -263
Monthly UNsecured debt repayments....... 558
Amount short for making debt repayments. -821

Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -0
Total Unsecured debt.................... -14,500
Net Assets.............................. -14,500

sourcrates

Seldom have i seen an SOA quite like that, is that all your income, how do you mange at the moment with such a deficit ?

Are you claiming all the benefits you are entitled too ?

Presumably its funded by credit, well that needs to stop, you need to cease all payments to the unsecured debts, and make separate arrangements to repay your utility bills, are you up to date with council tax and rent ?

Surly you must have more than £300 a month coming in, especially with two kids, tax credits ? child benefit ???

Gumball123

sourcrates wrote: »

Seldom have i seen an SOA quite like that, is that all your income, how do you mange at the moment with such a deficit ?

Are you claiming all the benefits you are entitled too ?

Presumably its funded by credit, well that has to stop, you need to cease all payments to the unsecured debts, and make separate arrangements to repay your utility bills, are you up to date with council tax and rent ?

I am using my sons income to pay the debts to avoid going into further credit. I have not missed one payment and I have a great credit rating but it is ruining our life as in order to not miss a payment, we are going without proper food and find it hard to live day to day. All I live on is £302 a month and that includes expenses for both me and my daughter and then all the other day to day bills. My son uses the rest of whatever he gets to live on.

sourcrates

Ok, well its clear to anyone that your debts are unafordable to you, and you should stop paying them now, straight away.

Over the Christmas break, take a look on the stepchange website (address link in my signature) check out the various options available to you, they have a free to use debt tool, you input your details, and based on that, it recommends a solution for you.

Do some reading up on debt relief orders (which is, i think, is where you are heading) get as much info as you can, then after Christmas, give stepchange a call to discuss your options, and get the ball rolling.

There is a solution, just need to find the right one for you, try not to worry about it, and enjoy your Christmas.

fatbelly

I agree with the DRO as a way of dealing with your debts but your debts are not your main problem if you do not have enough money coming in to live on.

As I understand it you have no partner but have (1) an adult disabled son and (2) a daughter under 18 (still at school?)

You should be getting JSA (or ESA or IS or UC) of about £73 per week, with £20.70 child benefit and £63 ish CTC. That's over double what you are getting. You may want to check in on the benefits board too.

Sncjw

You haven’t done the sow in full which shows your spending