DRO questions

kellyvg

I am considering a DRO for myself and my husband but when it says you can't have more than 20k debt does that mean each or together?
also my husband is not working at the moment so don't have more than £50 left but what happens when he gets a job and we potentially have more than £50 left? what does this mean for the DRO?
Thinking of DRO instead of bankruptcy due to the lesser charges involved but don't know much about DRO's so any info welcome.
many thanks

sourcrates

Hi,

A DRO is an individual arrangement, you cannot have a joint one, but you can have one each.

The 20k threshold applies to each individual, if your disposable income rises over the £50 threshold, then the DRO may be revoked.

This is why when entering a DRO you need to be as sure as you can be, that your circumstances won`t change for at least 12 months.

Info here :

https://www.stepchange.org/how-we-help/debt-relief-order.aspx?channel=ppc&&WT.srch=1&WT.mc_id=287026&WT.seg_1=%2Bdro&gclid=EAIaIQobChMIuLKcjvqR5wIVB7TtCh2N_AiyEAAYBCAAEgJ-p_D_BwE&gclsrc=aw.ds

fatbelly

I found a couple of misleading statements in that link

... If your financial situation hasn’t changed at the end of this period ...

Better to say 'if you have stayed within the criteria during the 12 months...' If you remain at surplus < £50 per month, debts < 20k and assets <£1000 you are ok. The asset limit is a little more flexible during the 12 months than at the outset and you may be able to keep the DRO as long as you do not exceed £1990.

So your financial situation can change quite a lot and still not make you lose the DRO.


common excluded debts are:
•Debts that have been taken out fraudulently, including benefit overpayments that have occurred as a result of fraud

An excluded debt is one that is not covered by the DRO and does not contribute to the debt total. A benefit overpayment IS a qualifying debt and DOES contribute to the debt total. However, if a debt is found to be fraudulent, it is not cleared at the end of 12 months and can be enforced/paid as before.

Other excluded debts not mentioned by stepchange are

Student Loans
An obligation under a ‘confiscation order’.
Damages

Actually technically TV licence arrears are not even a debt but I'll let them off that one

kellyvg

Many thanks, is it just my circumstances that can't change or it the income based on us as a family???

fatbelly

kellyvg wrote: »

Many thanks, is it just my circumstances that can't change or it the income based on us as a family???

Your circumstances CAN change. And a change of income for a partner would be a change

You just have to (officially) tell them of the change.

Partner's income is only relevant as it determines your share of the expenses.