Chances of having a DRO revoked due to new job?

Good morning,

I’m in the process of applying for a DRO after I lost my job in August and have been on JSA since then and been unable to pay my debts (23k). I’ve only ever worked in very low paid jobs, and the vast majority of the household income comes from benefits (tax credits and dla for my son). I’m really worried that if I find a new job, even only earning (£12,000 pa) then the DRO will be revoked. Minimum payments are £700 a month and I was struggling before I lost my job, though I never missed a payment. More of a robbing Peter to pay Paul scenario.
Has anyone had their DRO revoked for getting a new job?
Also, I have been offered a place a university next September and will be entitled to the maximum maintenance loan (around £9500) which is paid in 3 lump sums - one of which would be within the 12 month period. That would need reporting correct? And will that prevent me from having the DRO? I can’t find any info about being a student with a DRO online. Sometimes wonder if it’s worth trying to better my life, or if I’m just actually shooting myself in the foot


2016 GOALS:
PAY OFF CC - £2375 (currently on 0% deal)
MAXIMISE HELP TO BUY ISA
BUY OUR HA HOME WHEN RTB EXTENDED

Comments

  • fatbelly
    fatbelly Posts: 20,424 Forumite
    Name Dropper First Anniversary First Post Cashback Cashier
    edited 17 November 2022 at 1:11PM
    There's no point worrying about it now.

    See if you can get employment and take it from there.

    Your state support will decrease and expenses increase so your surplus may still be within the DRO parameters.

    You mention son's DLA - this does not count as income.

    There's info on DROs and student loans here

    https://www.gov.uk/guidance/debt-relief-orders-guidance-for-debt-advisers#student-loans
  • Thank you, I guess I am just very anxious about making such a big decision by applying for the DRO, I guess it's just human to think of all the things that could go wrong and worst-case-scenario type thing. I feel the £75 left over after bills is just what worries me - I mean I've been paying £700 a month to CC, so if I no longer have them then surely I'll have £700 spare cash right? Although, I also remember how I didn't have spare cash and was forever putting that "essential spending" on my cards and forever increasing the debt, getting myself into a bigger and bigger mess.
    I'm lucky in that I do have a job offer, I've just been unable to start due to long delays in DBS checks where I am, which has probably just brought my debt problem to a head and made me realise how I really wasn't managing as the slightest change in circumstances has absolutely drowned me.

    Thank you for the link regarding student loans. Unfortunately that is just about them as a debt and paying back, not actually becoming a student and taking out the loan whilst under the 12 month period. There doesn't seem much information about being a current student and the implications. Guess I will be the guinea pig and find out for everyone in September.

    Thank you again
    2016 GOALS:
    PAY OFF CC - £2375 (currently on 0% deal)
    MAXIMISE HELP TO BUY ISA
    BUY OUR HA HOME WHEN RTB EXTENDED
  • sourcrates
    sourcrates Posts: 28,801 Ambassador
    First Anniversary Name Dropper First Post Photogenic
    You should question whether it`s the right decision to enter a DRO if your circumstances are going to change.

    Ideally you need 12 months of certain stability in order to see things through, then after that your free to do as you wish.
    I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter
  • ToxtethO'Grady
    ToxtethO'Grady Posts: 342 Forumite
    First Anniversary Name Dropper First Post
    edited 30 November 2022 at 11:45PM
    Thank you, I guess I am just very anxious about making such a big decision by applying for the DRO, I guess it's just human to think of all the things that could go wrong and worst-case-scenario type thing. I feel the £75 left over after bills is just what worries me - I mean I've been paying £700 a month to CC, so if I no longer have them then surely I'll have £700 spare cash right? Although, I also remember how I didn't have spare cash and was forever putting that "essential spending" on my cards and forever increasing the debt, getting myself into a bigger and bigger mess.
    I'm lucky in that I do have a job offer, I've just been unable to start due to long delays in DBS checks where I am, which has probably just brought my debt problem to a head and made me realise how I really wasn't managing as the slightest change in circumstances has absolutely drowned me.

    Thank you for the link regarding student loans. Unfortunately that is just about them as a debt and paying back, not actually becoming a student and taking out the loan whilst under the 12 month period. There doesn't seem much information about being a current student and the implications. Guess I will be the guinea pig and find out for everyone in September.

    Thank you again

    A student loan would be classed as income, not an asset, for the purposes of a DRO and would be classed as the full amount for the year. It is spread over 12 months and added to any other income you receive. So you receive £9500 per annum as an example that would be divided by 12 and £791.67 is added to your monthly income.
    Your benefits/expenses will change when going to university as they would class your student loan as income for means-tested benefits. Your sons disability income is non-means tested so not affected.
    You can do a benefits check to see how adding the student loan would affect you.
    As Sourcrates says you need stability for the 12 months as the intermediary has to note any changes within 12 months that you have made them aware of, it all depends on yiour I&E after the change.
    If you still have less than £75pcm available after your living expenses you stay on your DRO if not it will be revoked.It maybe better to wait until the changes happen do your budget then.
    You can ask your creditors for informal holds and pay them what you feel you can afford now. It will go to debt collection agencies (they are not bailiffs, just another business with no powers) by the time the changes come about. Interest and charges should have stopped.
    Your credit file will have earlier defaults on and the DRO would affect it for 6 years anyway.
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