About to start the DRO process… nervous & questions?

DDx

Hi all, 

new poster, long time lurker! 

I am about to start the debt relief order process, I tried to do it 1 year ago but was over the 20k limit.

I’m quite nervous, it’s quite a bit thing. At the minute I’m not working, my partner who lives with me works so on my budget sheet I have wrote down what he brings in and what bills there are etc.
if while I am in a DRO I do end up getting a job, I know I would need to update somebody, but at that point would it be okay to do my budget for just my own wage? As if I do start bringing in money I will have to pay my own share of bills. (Likely wouldn’t have much leftover) And my boyfriends money is not mine - it just felt a bit silly to do a budget income/expenditure with zero income. 

I hope this makes sense, and thank you in advance for any advice! 

sourcrates

You should only consider a DRO if you can be relatively confident that your circumstances won`t change significantly in the next 12 months.

The disposable income level has now risen to £75, so if your income rises, and your expenses don`t keep up, then you do risk having it revoked, you really want a placid, uneventful year, at the end of which, see`s your debt written off.

I guess what you propose would be OK, but please bear in mind the minimum disposable income levels, as they are not flexible.

DDx

Hi thank you so much for your advice sourcrates.

it is more than likely that my circumstances won’t change, but I would rather have as much knowledge as possible going into it.

I probably should have worded my question a bit better though. If I was to get my own income, would I at that point when informing them be able to do my income/expenditure using just my own source of income? We are not married and I can’t expect my boyfriend to give me any money or anything, it’s just it didn’t seem accurate at the moment to not put his wage down, but if I was to earn I would have to pay my split of the bills and have my own different expenses. 

As I said it is highly likely that nothing will change, and if it did it wouldn’t be a great deal of income either. I do just want to be smart and be clued up about it all though. 

Lu_thien

Following as I have similar questions! My OH and I have just started a joint DMP with step change but am considering a DRO for my debt instead - I am unemployed currently so would be using OHs income, but can’t rule out finding a new job!

Good luck with everything! 

GeordieGeorge

Would it not be a better idea to start working and so avoid the need for a DRO?

It’s understandable for your debts to be a problem while you don’t work, but will they not become manageable again when you start back?

sourcrates

No, I fully understood your question, I was just covering all the bases so to speak.

With a DRO, your budget is the first thing they ask you to do, this basically determines if you qualify for a DRO, or not.

They ask you about your debts, what money is coming in, what is going out, you must have £75 or less left, at month end, after all your bills are paid, not including any of your regular credit payments, in order to qualify for a debt relief order.

That is the basis the DRO is granted on, obviously there are other criteria as well, but the money figures must not exceed the £75.

So the last thing you really want to be doing is messing with your budget 7 months into your arrangement, as long as your basic circumstances have not changed, as it can be folly to mess with things when all is running smoothly.

You are not checked up on, any changes have to be reported by you, but getting a job will change things, and you may no longer qualify, so you must be careful, and savvy, in equal measure.

You obviously don`t want the arrangement to fail, so if you can engineer it so that nothing changes much in those 12 months, then all the better it will be for you.

Basically you keep you head down, and stay out of the limelight for the duration of the moratorium period, once those 12 months have ticked by, your free to do whatever you want, and you will be debt free.

DDx

Lu_thien just wanted to wish you best of luck with everything too!

GeordieGeorge to answer your question, I have been struggling for years even when I was working, i went without a lot because of the debts. I just didn’t know that there was anything like this to help me until last year. Even if I were to have a job right now (which would be part time) I would not be able to afford my share of the bills and my debts. I’m 31 and feel like I’ve missed out on so much of my best years of life because of my debt (my fault I know) so now that I have become aware of what I can do I want to try and solve my situation. 

Sourcrates, thank you again your information is really helpful! It can be quite daunting so I appreciate you taking the time to answer my questions/concerns.

DDx

I hope it is ok to add into my question I asked here previously. I was very nervous when first posting and felt bad for having to ask more than one question. I want to make sure I am fully clear on everything as I am just waiting for my ‘barcode’ to pay the £90 to apply for my DRO now so it is becoming very real.

I don’t work currently.
my partner works & pays all the bills. 

For a close example he brings home £1,300 After bills, groceries etc there is £0 disposable income.

if I were to get a part time job, I would then Need to contribute my own money to the bills as it’s not just my boyfriends responsibility to pay them and he needs to be able to use his own money. (My debts are mine and not his) 
If I got a job after my DRO started and for example earned £500 per month, all of this would more than likely go towards the bills (not including any travel/food I would need for myself) but my boyfriend would no longer be putting his full wage into the household as it is his money and not mine. So for example he may then put £800 to bills etc and I pay my full wage of £500 (just examples) meaning I still personally do not have any disposable income.
would this be allowable due to change in circumstances could I then revise my budget to truly reflect that I do not just get his money?

From the information I got last time it seems I’m best off if I don’t work to not affect the DRO but I feel awful and like it’s so unfair for him that he has no money to enjoy himself whereas if I could pay for some of the bills he could at least use his own money again. 

Thanks in advance 

sourcrates

As stated in a previous post, the most critical part of a DRO is if your disposable income level rises above £75, if it does, your DRO will be revoked, and you will be back to square one again.

There is no leeway on this, its an automatic process, if your disposable income is £75 your fine, if its £75,91p, your not.

With a debt relief order its best to have an uneventful 12 months, you can make it up to him after your 12 month moratorium period has ended, otherwise your just wasting everyone's time, and your £90 fee.

However you manage your household budget, you cannot have more than the £75 disposable income, so make your budget fit those figures, make it fit yes, that`s all I will say on the matter.

Remember, its up to you to report any changes, you are not checked up on, or watched, or anything of that nature.

But, deliberately hiding income from the IS can result in harsh penalties, as long as you can justify the spending, all will be well.

theoretica

Your partner isn't doing the DRO - you are - so I think you should probably do the budget with just your income.  So what if it looks a bit silly!  Are you seeking advice from one of the debt charities?  They could probably help you with how you put in that your partner is currently supporting you.

fatbelly

In the example you gave (you earn £500, he earns £1300) you would be expected to cover 5/13ths of the household expenses. In those circumstances if your individual surplus was under £75 per month, you'd still be OK