Stepchange have suggested a IVA?

cccxxxooo

Hello, I have posted previously about DRO's, I was in contact with Stepchange back in January and they recommended a DRO, I (stupidly!!) stopped the process when I found it difficult to get all of the info about my debts and had a bereavement at the same time. I contacted them again today in the hope of starting the process again.

Today I updated my budget as some of my debts have increased and I have had a slight payrise(balanced with absolutely everything increasing in cost!) , which I thought would offer me the chance to apply for another DRO. It gave me the option of an IVA, I selected that I would like to go down the IVA route (seemed OK on reading), but after reading here an IVA is absolutely not right for me. I rent, have no assets (not even a car) and have £2.87 left over for non-priority debts in my budget, it says on my stepchange 'dashboard' that I have been handed to the IVA team and they will be in tough, will they just tell me that this is not right for me when they get in contact?

Will I need to get in contact with another organisation if I needed a DRO since Stepchange no longer deal with them? I still fit the criteria I think (total debt 17,453.38, leftover income £2.87 for example) Who should I contact? I have looked at citizens advice but it seems you have to go in person for meetings which will be difficult with work etc although I could manage it if it is the only option.

Any help or guidance would be greatly appreciated.

fatbelly

Try to talk to an actual person.

You are correct that Stepchange do not do DROs and that CA now do most of them (though there are another 6 or 7 organisations that also do them).

Most CA offices moved to phone advice during the pandemic and it's my understanding that most are now done that way. Certainly their DRO Unit would work by phone/email.

cccxxxooo

fatbelly said:

Try to talk to an actual person.

You are correct that Stepchange do not do DROs and that CA now do most of them (though there are another 6 or 7 organisations that also do them).

Most CA offices moved to phone advice during the pandemic and it's my understanding that most are now done that way. Certainly their DRO Unit would work by phone/email.

Thank you that is really helpful, I am thinking I should probably go straight to CAB for advise then and let Stepchange know, when they contact me, than an IVA is not for me if they hadn't worked that out already! Haha, thankfully Stepchange sent me an email with the budget and debt details so it should be easier to get the ball rolling with CAB. 

Thank you again

fatbelly

Yes. Try phoning their debt helpline on 0800 240 4420. Let us know how you get on

Robbie64

Are you able to input all the details again? You might not be able to if it has alredady referred you to a specific department. I ask because last year I helped a relative apply for a DRO and when completing the online StepChange debt remedy tool I found that the recommended solution changed from DRO to Debt Management Plan to an IVA and back to DRO again more than once when next to no details were changed. It did cause more paperwork - the StepChange debt advisor could see that there had been a few amendments to the information which had been input by myself. However these changes were relatively small and shouldn't have created such different suggested outcomes.

One thing I did notice that played havoc with the figures was where there was an exisiting DWP Social Fund Budgeting Loan repayment being made. Depending on how certain parts of the debt remedy tool were completed, it produced wild swings in the excess income figure. Out of curiosity do you have a social fund repayment included as part of your debts? I'm just wondering if you too have a Budgeting Loan included in your figures?

cccxxxooo

Robbie64 said:

Are you able to input all the details again? You might not be able to if it has alredady referred you to a specific department. I ask because last year I helped a relative apply for a DRO and when completing the online StepChange debt remedy tool I found that the recommended solution changed from DRO to Debt Management Plan to an IVA and back to DRO again more than once when next to no details were changed. It did cause more paperwork - the StepChange debt advisor could see that there had been a few amendments to the information which had been input by myself. However these changes were relatively small and shouldn't have created such different suggested outcomes.

One thing I did notice that played havoc with the figures was where there was an exisiting DWP Social Fund Budgeting Loan repayment being made. Depending on how certain parts of the debt remedy tool were completed, it produced wild swings in the excess income figure. Out of curiosity do you have a social fund repayment included as part of your debts? I'm just wondering if you too have a Budgeting Loan included in your figures?

I cannot work out how to start again from scratch so I am not sure if it is possible, maybe I am just being dense. I didn't have any kind of budgeting loan (I don't think!) Is that the kind you would get if on certain benefits? I do not get benefits beyond Child Benefit so I don't think it has much to do with that.

cccxxxooo

fatbelly said:

Yes. Try phoning their debt helpline on 0800 240 4420. Let us know how you get on

Thank you very much, I was on hold for a while and back to work today but I should be able to call on Monday. Could I ask one more question?

I am due a bonus from work on payday, its actually pretty large (around £500) and that will cover the rent arrears I have (£560), I have already told my HA that I will pay all of the arrears off on payday this month, would this affect me applying for the DRO? I know I should wait to talk to CAB but I am wondering if I should hold off contacting them until after this, my bank statement will clearly show the money going in and then being paid out to the HA straight away? Thank you.

flipflopflo

No it won’t cause a problem as the roof over your head is a priority debt and one that it is important to keep on top of. 

Robbie64

cccxxxooo said:

Robbie64 said:

Are you able to input all the details again? You might not be able to if it has alredady referred you to a specific department. I ask because last year I helped a relative apply for a DRO and when completing the online StepChange debt remedy tool I found that the recommended solution changed from DRO to Debt Management Plan to an IVA and back to DRO again more than once when next to no details were changed. It did cause more paperwork - the StepChange debt advisor could see that there had been a few amendments to the information which had been input by myself. However these changes were relatively small and shouldn't have created such different suggested outcomes.

One thing I did notice that played havoc with the figures was where there was an exisiting DWP Social Fund Budgeting Loan repayment being made. Depending on how certain parts of the debt remedy tool were completed, it produced wild swings in the excess income figure. Out of curiosity do you have a social fund repayment included as part of your debts? I'm just wondering if you too have a Budgeting Loan included in your figures?

I cannot work out how to start again from scratch so I am not sure if it is possible, maybe I am just being dense. I didn't have any kind of budgeting loan (I don't think!) Is that the kind you would get if on certain benefits? I do not get benefits beyond Child Benefit so I don't think it has much to do with that.

It may have changed since last year. All I had to do was to reinput all the information (debts, income, spending etc) and then at the end it offered me a debt solution once again. However, I think there's a stage you can get to in the application process where the account "locks" and it's not possible to change anything further.

A Budgeting Loan is essentially an advance of benefit for people on certain means tested benefits such as Income Support. It is also known as a Budgeting Advance on Universal Credit. You have to be on these benefits for at least 26 weeks to qualify and actively apply for the loan / advance so based on what you've written you definitely won't have one of those causing any problems when the debt remedy tool tries to work out the best debt solution.

fatbelly

cccxxxooo said:

fatbelly said:

Yes. Try phoning their debt helpline on 0800 240 4420. Let us know how you get on

Thank you very much, I was on hold for a while and back to work today but I should be able to call on Monday. Could I ask one more question?

I am due a bonus from work on payday, its actually pretty large (around £500) and that will cover the rent arrears I have (£560), I have already told my HA that I will pay all of the arrears off on payday this month, would this affect me applying for the DRO? I know I should wait to talk to CAB but I am wondering if I should hold off contacting them until after this, my bank statement will clearly show the money going in and then being paid out to the HA straight away? Thank you.

Just to confirm what flip has said - rent arrears are a special case in a DRO and you are allowed to make payment to them.

So, provided you do not need to use the lump sum to buy food, I would say using it to clear rent arrears is the best thing you can do.

I actually work on the debt helpline and know it is chronically understaffed. It opens at 9 am - can you try then?

cccxxxooo

fatbelly said:

cccxxxooo said:

fatbelly said:

Yes. Try phoning their debt helpline on 0800 240 4420. Let us know how you get on

Thank you very much, I was on hold for a while and back to work today but I should be able to call on Monday. Could I ask one more question?

I am due a bonus from work on payday, its actually pretty large (around £500) and that will cover the rent arrears I have (£560), I have already told my HA that I will pay all of the arrears off on payday this month, would this affect me applying for the DRO? I know I should wait to talk to CAB but I am wondering if I should hold off contacting them until after this, my bank statement will clearly show the money going in and then being paid out to the HA straight away? Thank you.

Just to confirm what flip has said - rent arrears are a special case in a DRO and you are allowed to make payment to them.

So, provided you do not need to use the lump sum to buy food, I would say using it to clear rent arrears is the best thing you can do.

I actually work on the debt helpline and know it is chronically understaffed. It opens at 9 am - can you try then?

Thank you Fat Belly - that's really handy to know to call @ 9am, I will tomorrow, I contacted live chat today and spoke to someone who was so knowledgeable (and really lovely) who suggested I call at 9am tomorrow morning too, he answered all of my questions - I am a worrier and struggling with my mental health right now, I find taking the first steps without much info very daunting - so anyone reading this who is in the same position as me, lurking and trying to get as much information as possible, I would really recommend the live chat function.

I forgot to ask him one question though, typically! I have opened a new bank account, I am certain my current one will be shut down when/if I get a DRO due to owing them via a loan and overdraft - when opening the new account I was told my old one would be 'shut down' but what will happen if CAB want to see bank statements, I won't have anything to show them from my new bank and old one will be gone, should I request statements now before it is shut? Would they need just one statement or 3/6 months worth?

Thank you everyone again!