We're aware that some users are experiencing technical issues which the team are working to resolve. See the Community Noticeboard for more info. Thank you for your patience.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

Potentially applying for a DRO and looking for advice on a few things

Options
Hi guys...

I'm severly struggling financially and am contemplating a debt relief order.

I struggle with depression and in the past I've used the spending as a means for cheering myself up and needless to say I'm in a bit of a mess.

In total I have approx £19k in debt and technically am at -£2 after paying all my bills... I say technically as at the moment I managed to get interest frozen on a couple of credit cards for 3 months which is up after this month... Then the payments go from £140 to nearly £300...

I was wondering a few things as I've seen different answers when others have asked...

The Assets over £1000... Is that in total or a single item? And what counts as an asset?

I have seen people say that to qualify you have to have less than £50 spare BEFORE your debts are paid... Is that right???

Also our car is worth £2k... It's currently in my name but if I put it in my wife's name will it be safe from the dro?

I am retraining with hopes of bettering my situation and I have an old but high end pc... I don't think it's worth over £1000 but it's definitely worth over £300 (which is a figure ive seen thrown about for individual items) and I was hoping that I may be able to use it to help increase my earnings in the short term... Would I need to sell this?

I also have debt in my wife's name as she's tried to help me out... Will this affect my chances?

And lastly (for the moment at least) I wondered about my phone contract... It was a sim only deal from a few years ago... I get unlimited texts and data for £17... I use it mainly for internet use and I know from the amount of data I use is be looking at £40+ for a new contract alone... Is there any way I can keep this? I know I won't be able to negotiate with the provider due to their nearest current equivalent being more than double...

Another thing is that I may be have to drop a day at work due to a number of illnesses (the depression, a gluten intolerance, possible ibs and just recently diagnosed with diabetes) will this cause any issues as it will be reducing my income by possibly around £200+

As you may tell from the time I'm posting this all affects my sleep which in turn affects my health which again in turn causes more sleep issues... I need to get something sorted so that I can start working on everything else...

Sorry for the major rant...

Any tips would be greatly appreciated as some advice family and friends have given so far seems to have just been made up!

Thanks

Comments

  • Morning

    Assets are a total of £1k combined, plus a vehicle no more than £1k. you could transfer to your wife's name, there should be no issues with this IF doing DRO, but i could be mistaken on this

    Your £50 surplus maximum amount is BEFORE your payments to creditors

    Debts in your wife's name will remain in your wifes name, regardless who pays them or what they were for.

    if your income reduces whilst in DRO, it wont have a negative impact, only if your excess income exceeds £50pcm

    £17 for phone & internet seems fair

    i would put up a SOA (statement of affairs) so that we can see what expenses and income you have, and will be better to help.
    http://www.stoozing.com/calculator/soa.php
  • You cannot transfer an asset into someone else's name. If your car is worth over £1000 then you are not eligible for a DRO.
  • Ah well... Looks like I'm not eligible... Poop... Ill have to think of something else... Thanks guys...
  • You could sell the car, buy one of a value less than £1000 and then share the rest of the money pro rata between the debts, making sure that none of them get preferential treatment.

    The £50 surplus is before you would have paid out any debt installments. In other words, if you ignore debt repayments, you need to have less then £50 excess each month.
  • Yeah... That is why I'm not eligible.... Ill have to look at some other way... But thanks anyway...
  • National_Debtline
    National_Debtline Posts: 7,998 Organisation Representative
    Tenth Anniversary 1,000 Posts Combo Breaker
    Hi MrHug


    I'm sorry to hear about your health issues. As well as getting on top of your debt situation, make sure you are looking after yourself. If you have not discussed your depression with your GP yet, that's a good place to start.


    It looks like you've established that you don't qualify for a DRO at the moment, but there will be other options. I'd recommend you use the link Craig1981 gave you to complete a SOA then post it on the Debt Free Wannabe board. From there you'll get advice on the best way to deal with your situation.


    Good luck with it all


    Susie
    @natdebtline
    We work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps
  • I will have a look tonight... I might be able to save myself about £100 with a loan to cover most of it... My virgin account is on a medical status and as long as I keep paying they aren't going to charge interest to anything... But I'll do the soa to see if there is anything else I can do...

    Thanks
  • sourcrates
    sourcrates Posts: 31,464 Ambassador
    Part of the Furniture 10,000 Posts I've been Money Tipped! Name Dropper
    MrHug wrote: »
    I will have a look tonight... I might be able to save myself about £100 with a loan to cover most of it... My virgin account is on a medical status and as long as I keep paying they aren't going to charge interest to anything... But I'll do the soa to see if there is anything else I can do...

    Thanks


    I would not look to consolidate these debts, many have tried, and failed, and more than once,


    Debt management is what you should be looking at, pop over to debt free wannabe, post up your SOA, and we can take a look and see where to go from there.
    I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter
  • Your probably right... I'm not sure I would get the loan anyway... I'm a bit apprehensive about debt management cause the last time I phoned one the agent giving me the information started screaming at me how I was never going to get out of debt if I didn't take it out immediately... Just cause I said I needed to think about it...
  • MrHug wrote: »
    ...I'm a bit apprehensive about debt management cause the last time I phoned one the agent giving me the information started screaming at me how I was never going to get out of debt if I didn't take it out immediately... Just cause I said I needed to think about it...
    Use one of the free debt counselling services and you won't be pressurised. Whatever you do, don't pay for the service...:)
    I work within the voluntary sector, supporting vulnerable people to rebuild their lives.

    I love my job

    :smiley:
This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 350.8K Banking & Borrowing
  • 253K Reduce Debt & Boost Income
  • 453.5K Spending & Discounts
  • 243.8K Work, Benefits & Business
  • 598.6K Mortgages, Homes & Bills
  • 176.8K Life & Family
  • 257K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.1K Discuss & Feedback
  • 37.6K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.