Dro

naturalsworrier

Hello, first off I hope this is the correct section.

My partner and I have been together for 4, nearly 5 years. He is in 4K of debt. This debt was all before we met. He got made redundant and has since been unable to keep up the payments, they agreed to him paying £1 a week when he was claiming contributions based job seekers. He is no longer able to claim anything now aS I work.

We have 2 children and now I’m receiving tax credits he’s staying at home while I work.

He literally has zero income, apart from the tax credits which are joint.

The solicitors have been ringing for ages saying they will not accept he’s zero earning 🤨 and that they’re applying for a CCJ.

My partner is very good at burying his head in the sand.. I’ve been telling him to speak to someone for advice and he wouldn’t. Well now they’re threatening a CCJ hes finally made an appointment with citizens advice, they can’t fit him in until 6 weeks.

I think his best option is a DRO. He literally has no assets. I’ve bought eveything worth taking like the TV and PS4. We literally have nothing else worth taking. We live on my low wage and are topped up with tax credits.

I’m beyond stressed worrying about bailiffs turning up, being. Arsey because they will literally look around our house (we have recently just moved into a council house and can’t even afford carpets down yet) and realising there’s nothing worth taking.. what happens then?

Can he get a DRO if he has just income from tax credits? Do they take into account the working tax credit is mine and the child tax is joint?!


How long does a DRO take? Will it go through if a CCJ has already been issued

thanks in advance

sourcrates

Hi,

You don’t make any payments in a DRO so income is only a factor when assessing the £50 limit on disposable income at months end.

County court judgements are extinguished under insolvency and have no bearing as to weather one is granted or not.

You must meet all the specific criteria to be accepted, which includes :

Must not be a homeowner
No assets over £1000
Any car must be worth less than £1000
No more than £50 disposable income at month end (not including any debt repayments).

Timescales can differ, but usually a few days or weeks to complete.

naturalsworrier

We rent our house, the car was paid for by my dad with his retirement money so that’s all in my name and I can prove it came from my dad. He literally owns nothing. He has an iPad, but it’s at least 3 years old so isn’t worth anywhere near the money he owes.

Do you know if tax credits are counted as income? The tax credits are less than our bills each month so even if they do I suppose they can’t say he has money to pay anything.. the citizens advice were asking for my income. But It’s not my debt so I don’t see why I should give anyone that?! I don’t want any of this to come back to me when it was all debt before I met him. I’m beyond stressed but he just doesn’t seem to care

WhenIam64

But It’s not my debt so I don’t see why I should give anyone that?! I don’t want any of this to come back to me when it was all debt before I met him. I’m beyond stressed but he just doesn’t seem to care

They will look at household income but the issue is not the threat of a CCJ but whether they will pay to put it through the courts. Everyone threatens a CCJ but few actually pay the money to have the hearing and the costs of running it to court. There is also what is called "litigation risk" where the claimant loses because they are not able to produce the paperwork. You see the comment about checking for paperwork often here.

Threats are a lot, lot cheaper than court and a lot less riskier for Creditors.

The solicitors have been ringing

Solicitors don't ring - not a the prices they have to charge. It is some call centre monkey with a script rattling people.

debt_doctor

Hi,
If I were processing your application (I am an intermediary, and have processed DROs for 10 years) I would use 50% of the working and child tax credits as his income and apportion household expenses accordingly. I appreciate you are the only one working but WTC is still a joint claim. This wouldn't cause any issues in my view. This would allow the calculation to take place showing his potential spare income - not yours. I doubt he would have any surplus income.
Sometimes Intermediaries like to look at the whole family picture and use our 'trigger figures' to see if the family fits the surplus rule too. However, this wouldn't make you responsible for anything, and it is only the applicants spare income that counts.

As regard to bailiffs coming round - that can't happen until you have been taken to court AND they have obtained a CCJ AND you have failed to do what the court said. Only then can they apply for a warrant.

Anyone expecting bailiffs should keep the doors locked and not let the bailiff in.

DD

fatbelly

That thread went pretty much the same as your other one, OP!

https://forums.moneysavingexpert.com/discussion/5988776/obtaining-a-dro