Would DRO be right for me?

Carlton221

Hi everyone, longtime lurker and requiring some guidance.
This is going to be a long post so please bear with me and would appreciate any help!
I currently have no arrears on my rent, council tax, bills or debt. All credit cards are currently on 0% interest.

1) Currently have debts of GBP 27054.17 across 4 credit cards. I know to qualify for DRO this would need to be under 20K, if I can get a loan from my company of 8K can I pay off one credit card to reach the qualifying threshold, or can i pay 2k on each of the 4 cards and make the threshold?
2) I care for my elderly mother who lives abroad and pay for her bills, how will this figure into the calculations for the DRO (I currently send GBP 250 to pay for her bills)
3) From next month my salary is going to be massively reduced, My company is going to help me to pay rent till January but after that i'm looking to move to save on bills but if I do then the DRO will affect my chances of renting (damned if i do, damned if i dont!) I want to move now but the situation is such that i cannot till January end.
4) Here is the SOA after my salary reduction - not sure how to proceed from here:

[font=courier new][b]Statement of Affairs and Personal Balance Sheet[/b][b]

Monthly Income Details[/b]

Monthly income after tax................ 1200

Partners monthly income after tax....... 0

Benefits................................ 0

Other income............................ 0[b]

Total monthly income.................... 1200[/b][b]

Monthly Expense Details[/b]

Mortgage................................ 0

Secured/HP loan repayments.............. 0

Rent.................................... 1046

Mom's bills.. 250

Council tax............................. 114

Electricity............................. 39

Gas..................................... 20

Oil..................................... 0

Water rates............................. 35.53

Telephone (land line)................... 0

Mobile phone............................ 20.48

TV Licence.............................. 0

Satellite/Cable TV...................... 0

Internet Services....................... 22

Groceries etc. ......................... 232

Clothing................................ 0

Petrol/diesel........................... 0

Road tax................................ 0

Car Insurance........................... 0

Car maintenance (including MOT)......... 0

Car parking............................. 0

Other travel............................ 0

Childcare/nursery....................... 0

Other child related expenses............ 0

Medical (prescriptions, dentist etc).... 0

Pet insurance/vet bills................. 0

Buildings insurance..................... 0

Contents insurance...................... 0

Life assurance ......................... 0

Other insurance......................... 0

Presents (birthday, christmas etc)...... 0

Haircuts................................ 0

Entertainment........................... 0

Holiday................................. 0

Emergency fund.......................... 0[b]

Total monthly expenses.................. 1779.01[/b]

[b]

Assets[/b]

Cash.................................... 0

House value (Gross)..................... 0

Shares and bonds........................ 0

Car(s).................................. 0

Other assets............................ 0[b]

Total Assets............................ 0[/b]

[b]

No Secured nor Hire Purchase Debts[/b]

[b]Unsecured Debts[/b]

Description....................Debt......Monthly...APR

A..............................7525.38...76........0

B..............................7884.7....79........0

C..............................7114.79...72........0

D..............................4500......102.......0[b]

Total unsecured debts..........27024.87..329.......-  [/b]

[b]

Monthly Budget Summary[/b]

Total monthly income.................... 1,200

Expenses (including HP & secured debts). 1,779.01

Available for debt repayments........... -579.01

Monthly UNsecured debt repayments....... 329[b]

Amount short for making debt repayments. -908.01[/b]

[b]Personal Balance Sheet Summary[/b]

Total assets (things you own)........... 0

Total HP & Secured debt................. -0

Total Unsecured debt.................... -27,024.87[b]

Net Assets.............................. -27,024.87[/b]

[i]Created using the SOA calculator at www.stoozing.com. 

Reproduced on Moneysavingexpert with permission, using other browser.[/i][/font]

ManyWays

If you borrow from your employer that loan has to be included in a DRO. So it wouldn’t get you under the £20000 limit. I think you have to cross off a DRO as an option. 

I don’t think you could continue to send £250 to your mum when bankrupt. If this is essential for you I think you have to cross off bankruptcy as an option too. 

Which leaves you with having to offer £1 token payments to your creditors. 

Galloglass

If you borrow from your employer that loan has to be included in a DRO.

It would also not be repayable as it would be written off. Not sure an employer would agree to such a loan knowing what would happen to it. 

fatbelly

Actually, that's a fair summary of what you need to do with your debts. Token offers and hope this is temporary till you get a new job.

https://www.nationaldebtline.org/EW/sampleletters/Pages/Token-payments-or-no-offer-of-payment-(sole-name).aspx

Your problem is that you need to shave £579 off that budget to survive and there is a lot missing from it.

If you're a single person then council tax at £114 and rent at £1046 indicate you live in an expensive area.

You need to play with the benefits calculator at https://www.turn2us.org.uk/ to see what help you could get where with rent and council tax.

And then the expenses need a bit more work. You need some sort of allowance for travel, clothes, presents. You have no insurances? Also £232 is a lot for groceries for one - aim for £35 per week.