DRO - income deficit

fatbelly

But it's daughter-in-law who has 11k of debt, negative surplus, a ccj and qualifies for a DRO.

A DRO will take the pressure off and has already been recommended by Payplan.

Might as well get on with it unless you think she will be getting into more debt in the immediate future.

I just noticed you say these are 'old debts' - how long since she made a payment to them? Not six years by any chance?

Dorothy60

Hi again Fatbelly, and thanks for replying.


I think what put her off ringing CAB was the statement on the bottom of the letter: 'in order for your DRO to be successful it is important that you address the monthly shortfall in your budget' We wondered if this would prevent the DRO being approved.


No, none of the debts are over 6 years old, but the one that she has the CCJ on is 5 years old.


I only mentioned this because she has not taken any new credit for a number of years, as a family they live fairly hand to mouth but don't rely on credit.


The lady at pay plan suggested that my son applied for benefits, but of course as a self employed person he is not entitled to JSA.


I am probably over thinking things, which I why I so appreciate your advice and reassurance, so thank you so much again for posting

Daniel1971

The wording on that document simply means that if you don’t try to address the deficit before applying you will be getting into further debt whilst in the DRO.

Citizens advice will be able to look over the budget with your DIL and offer further advice regarding ways they may be able to reduce this deficit.

Dorothy60

Thank you so much for your reply, Daniel1971, that makes perfect sense. Very reassuring, thanks again