DRO & beneficial interest

Freestork

Hi guys, can I please ask for some advice? Ive currently got just over £12K of debt. Went through NDL for help and advice. They originally recommended a DRO but then advised wouldn't be possible due to beneficial interest. I moved in with my partner 10 years ago. The house is solely in his name and is mortgage free. He is not aware of my debt. I  moved forward with a DMP through Stepchange, which has just started, though StepChange email recommends a DRO? Am confused now and also very stressed, am I able to apply for a DRO or will my partners house be at risk? Can anyone please help? many thanks

mwarby

Have you discussed with stepchange ? It may be that a DRO is suitable, or it could just be that a computer thinks a DRO is suitable(not being aware of beneficial interest)

sourcrates

As you live together as a couple, you would be deemed to have a beneficial interest in the house, which is likely to be over the assets threshold for a DRO therefore you would not qualify under those rules.

Hypothetically speaking, if you lived in the house as a tenant, and paid rent, then you would qualify for a DRO as long as the other acceptance criteria can also be met.

Freestork

Hi, Ive not discussed it with stepchange as yet, thought I would ask for advice before approaching them. 

Freestork

sourcrates said:

As you live together as a couple, you would be deemed to have a beneficial interest in the house, which is likely to be over the assets threshold for a DRO therefore you would not qualify under those rules.

Hypothetically speaking, if you lived in the house as a tenant, and paid rent, then you would qualify for a DRO as long as the other acceptance criteria can also be met.

Thanks sourcrates, I do contribute to the running of the household, and stepchange classed the £300 a month I pay my partner, as rent, I don't own any assets, my car is on a PCP plan, and will be returned to the garage at the end of the plan.

mwarby

As a budget item yeah I can see how it could be classified as rent. In terms of DRO having lived there for 10 years as a couple, a tenancy agreement drawn up to become eligible for a DRO would be seen through quite easily if ever looked in to. It could be argued that to do such a thing is a form of misrepresentation (you'd be misreresenting your affairs, in order to exclude an asset from your creditors). I'm sure sourcrates knows more than me here, but thought I should raise the risk, just in case it becomes a bigger problem for you

edit - also would the benifical interest not still exist, unless it had been a tennant/landlord reationship for the last 10 years ?

sourcrates

Fatbelly is the man to ask on this one, your car may also be a problem as you cannot have a car worth over £1000 PCP or not.

Freestork

sourcrates said:

Fatbelly is the man to ask on this one, your car may also be a problem as you cannot have a car worth over £1000 PCP or not.

Thanks sourcrates, SC looked into this and said as the car doesn’t legally belong to me that’s not an issue. Think I would have problems with BI thou but appreciate your help