Am I eligible 8 July at 10:22PM in IVA & DRO 7 replies 134 views

sallymanton

Just roughly, Would I be eligible for a DRO if my debt is 14k over 15 creditors, my income is £1211, my outgoings are £1170, with a small baby to bring up and care for. I have no assets, so savings no nothing of value apart from the clothes I wear and they have holes in?
Just for a bit of guidence on weather I'm doing the right thing, currently on a DMP. Thanks

sourcrates

Yes on those figures you would.
DRO would be a good choice, surprised it wasn’t offered to you by stepchange actually.

sallymanton

They were working more towards bankruptcy, but funny enough I can't afford the fees without borrowing the money which defeats the object, thank you for your swift reply. 

I think stepchange also didn't mention a DRO because my budget is currently £75 to them, but as I can't get a PPC for my meds I'm now having to pay 4 x prescription a month, that isn't allocated in my plan until I ring them 

sourcrates

DRO is very simple, once submitted, approval is within a couple of days, after 12 months, if your financial situation is still the same, your debts are written off.
Thats it, no payment, no hassle, no scrutiny, plus legal protection from creditors.

MalMonroe

I don't understand why StepChange would be 'working towards a bankruptcy' before trying a DRO because the amount of your debt is just right for a DRO. You DO have to pay for a DRO but it's not as much as a bankruptcy. A DRO is NOT simple but it's better than bankruptcy and it's far better if an agency like StepChange acts on your behalf. You do need to have another discussion with StepChange, or a similar debt help agency.

I'm a bit puzzled about the fact that you have a DMP in place too. Surely that would have to be sorted out before a DRO could be issued? And why can't you get a PPC for your medication? That's something you pay for yourself. You really do need to speak to someone at one of the agencies, even if you don't want to speak to StepChange, though, because it's obvious that you need some solid help and advice here, especially as you have a baby to look after. I have had a DRO and it was all arranged for me by StepChange. I had to pay £90 for it. Which I couldn't afford all in one payment but was allowed to pay in instalments. Obviously the faster you pay the £90, the quicker they can apply for the DRO. Even though your debts will be discharged after one year, the DRO will remain on your credit file for five more years. I felt it was worth it, though. 

sallymanton

They said bankruptcy was my only option as I currently have £75 surplus to pay my DMP over the threshold for a DRO, this was before I found out I can't have a PPC on direct debit (£11 a month), I would have to pay in full which is £105, I can't afford that. I am ringing stepchange on Saturday to let them know my council tax has increased and I need to allow for medication on my budget, which would then drop it down below the £50 for a DRO to go ahead, hopefully. 
I was on a token payment plan for a year whilst I was on maternity, that is only ever allowed to be temporary apparently and it has come to an end that's why I have been put on DMP. So I'm still contributing to my creditors. I can't afford bankruptcy fees so I thought a DRO would be my best option. I am not bothered about my credit file to be honest, because I never want credit again, I just want a simple life with what is mine is amine and if I can't afford it I can't have it. 16 years to pay my current debt and constant letters chasing is really getting me down and my worry surely must be having an affect on my baby 

fatbelly

AFAIK Stepchange is still the second biggest organisation for DROs so they can and do do them. 

I suspect you'll be OK on the new figures. They can't be entirely happy with £75 per month on 14k debt as that will take 15 years to clear. It's award when the numbers turn out just the wrong side of the £50 max but dropping £25 per month is only £6 per week so it shouldn't be difficult.

sallymanton

Thank you, hopefully i can get something sorted as every day is a battle 🙄