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DRO - circumstances change

6 replies 113 views
sallymantonsallymanton Forumite
14 posts
10 Posts
Hiya all
I'm doing some research in to a DRO, which I may go down this route, rather  than bankruptcy just not sure.I read it says after the 12 months 'if your circumstances change' then debt will be written off, well if I went ahead and applied for this, then my monthly payment to stepchange will stop (currently on a DMP) so therefore I'm instantly better off. Would that mean I would have to contribute to my debt again, even if my monthly income stays the same at time of application? I'm so confused please help.


  • sourcratessourcrates Forumite, Board Guide
    21K posts
    Tenth Anniversary 10,000 Posts Name Dropper Photogenic
    Yes you are confused.
    To qualify for a DRO you must ~
    (A) not be a homeowner
    (B) have 20k of debt or less
    (C) not have a car or assets worth more than £1000
    (D) not have more than £50 disposable income, not including debt repayments.

    Basically if your paying stepchange more than £50 a month, you won’t qualify for a DRO.

    In a DRO you make no payments, then after 12 months, if your circumstances have not changed, your debts will be written off.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File and Ratings, Bankruptcy And Living With It, boards. "I volunteer to help get your forum questions answered and keep the forum running smoothly".
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to:
    [email protected].
    Any views expressed are mine and not the official line of
    For free debt advice, contact either : Stepchange, National Debtline, CitizensAdviceBureaux.
  • sallymantonsallymanton Forumite
    14 posts
    10 Posts
    Thank you, that's the bit that confused me, is the if my circumstances haven't changed my debt will be written off...
    I do quality for a DRO, based on everything you have said , just didn't know what would happen to the money I pay stepchange at the moment. 🤔🤔
  • fatbellyfatbelly Forumite
    15.3K posts
    Part of the Furniture 10,000 Posts Cashback Cashier Car Insurance Carver!
    There's a £90 upfront fee then that's it. No further payments. If you have surplus income (less than £50 per month) then save it  - you are allowed up to £1000 'assets' on entry to a DRO and the rule is a bit looser once you are in it (but best to keep it below £1000)
  • sallymantonsallymanton Forumite
    14 posts
    10 Posts
    Thank you, I couldn't work out if they would take the money I pay stepchange of me as well, so at least I would have something to play with. 
  • sammyjammysammyjammy Forumite
    5.1K posts
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    How much are you currently paying Stepchange?
    "You've been reading SOS when it's just your clock reading 5:05 "
  • sallymantonsallymanton Forumite
    14 posts
    10 Posts
    Once I have updated my budget review it will be £35 a month 
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