Is DRO for me?

Jchreg123

I have a total of £7500 debt. One loan, two credit cards plus £500 on my next account.
I am employed part time. My wages do not cover my debts and currently parents are helping to pay my monthly payments. My partner currently pays some of the house bills due to my debt the house and car are in his name. I am left with no money after paying for debts and things for the kids.
Would a DRO be advisable for me? I can’t take on more hours due to the cost of child care being more than I earn if that makes sense.

fatbelly

Well it could be.

If you meet the other criteria (not a homeowner, car worth <£1000, assets <£1000, not had one in the last 6 years) then the key point will be how much surplus you have after allocating your share of the household expenses and before making your debt payments.

The best thing you can do is get in touch with someone who can do that calculation for you. Stepchange and CAB do most of them.

Jchreg123

Hi I was hoping you would reply. Thank you. So I don’t own the house or car. In my personal account it gets my wage in which all goes. No overdraft. We have the joint account which my partner put some money in to cover the cost of bills. Would that be taken into account and would I have to come off the joint account? If I wasn’t paying my debts I would be paying my share of bills he just took over for now until I find a solution but it can’t go on forever. I recently went from being self employed to employed to earn money to pay things back faster and to get out of the debt will that go in my favour?

fatbelly

The normal way the calculation is done (and it's often not as easy as this will sound) is to list all the income into the household and all the expenditure out of it. Then work out what proportion of the income is the debtor's and apply that proportion to the expenditure. See what falls out as the surplus.

I note that you've recently stopped self-employment. Will you have a tax bill for your self employment work in 2019/20?

Jchreg123

No I was making a loss which is why I closed the business. Did a college course and got a job. I am up to date with NI payments etc.