Getting 2nd DRO

billybawb

I have previously had a debt relief order. Approved in Feb 2012 and Discharged in Feb 2013.

For various reasons - health, a drop in work hours and income, i have found myself unable to pay off my debts without causing other debts to go unpaid.
Just had an attachment of earnings come through for unpaid council tax. My other debts I have kept on top of for the last 6 years no defaults. Though Credit score still sucks.
I'm seriously considering applying for another DRO.
My question is will I be able to apply now or am i better waiting until February? Is the 6 year rule from when you first applied for a DRO or from when it was discharged?
I've done a full financial breakdown of my income/outgoings and i'm 99% certain I qualify for a DRO.
My situation is not going to change anytime soon income wise.
Any advice appreciated.

Craig1981

from what you have posted, I assume council tax your only debt? how much is owed?

if this is the only debt, it is pointless doing another DRO. your DRO is made up of a SOA, which will include Council tax liability, so if this is the case, you have underlying issues with budgeting that need to be addressed

what amount is being taken from earnings? what should your regular monthly council tax payments be?

I would seriously consider some budgeting advice first before considering another DRO, especially if only council tax owed. Yes, they have an AOE, but this would have been after reminders, final notices, magistrates court etc.

billybawb

Hi, no the council tax isn't my only debt. I've got 5600 spread over two credit cards. But its at the point where I've let council tax and gas/elec payments slide so I can cover minimum payments.
Also got maybe 1200 debt in tax cred over payment, housing benefit over payment, council tax arrears and gas/elec.

Craig1981

thanks for the info
as previously said, you need budgeting advice, pure and simple
i appreciate your hours at works have decreased, but plenty of other work out there, and need to adjust living to your income.
6 years from start of DRO before you can apply again

tax credits/HB overpayment if deemed as fraudulent, you will still need to pay this debt back, regardless of DRO or not

i would strongly recommend CAB, face 2 face appointments, and hopefully can get the budgeting advice that is desperately needed

billybawb

Thanks will be dropping in soon. I don't believe they're fraudulent just adjustments based off changes in expected and actual income for previous years. The amounts taken back are pretty small i've just included them since they are classed as debts.
Honestly don't feel its a budgeting issue since we've pretty much got nothing left after normal household expenditure. Not had a holiday in years, nor bought clothes for myself.

ToxtethO'Grady

You'll probably get a restriction due to having them so close together so your debts will be written off but you'll show as though you're on a DRO for 2-15 years, usually it's about 4 years


Your intermediary will probably ask for a statement about how this has come about again as the Insolvency Service DRO team will want to know.


But its at the point where I've let council tax and gas/elec payments slide so I can cover minimum payments.


You need to pay your priorities and its your credit debts that need a reduced payment, you may be classed as showing a preference and your DRO may be rejected.