dmp to dro? lots of new upheaval now

stu12345_2
stu12345_2 Posts: 800
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edited 30 December 2023 at 9:17AM in Bankruptcy & living with it
myself and my wife are running a self managed dmp for last few months after leaving the step change one.
we did the CCA letters almost 3 months ago and set up repayment plans for creditors that proved debt was enforceable., which are standing orders set up by us 

some never even answered our recorded delivery letters. so they got included in the make no payment to them as well along with a creditor that states debt unenforceable.

to cut a long story short, I got offered a new higher paying job( plus potential to get  an even higher  one next week cos I have final assesment on another potential job)so wife and I both resigned from current jobs yesterday .it would have been awkward for wife to carry on cos I need the  car for myself  for new job, it's 10 miles away, start before buses operate ( we currently work together for same employer, so use the car together to get to work, our hours don't coincide with bus times, it's a ,2 mile walk, 4 trips a day, split shift)and also we would only meet rarely based on my new job and her current low paid job.

so the plan was I pay for running the household fully with my new  job wages and give her money towards her current Standing orders, ( technically I shouldn't offer, cos creditors should only want her income and it is may soon be zero )whilst she look for a new local part-time job with work days that match my new job.  so could rightfully offer them nothing not even £1 a month.

she already has i an interview lined up for Tuesday already for a part-time job. she has applied for 9 part-time  jobs in last 2 days.

questions , she won't be signing on , cos she only wants a small part-time job  so won't meet dole office rules and she would get sanctioned anyway for leaving current job  and she would be allowed a DRO anyway imo.which would save her £10000.( her debt amount), that's also why she sees working on a full-time job not a good idea for at least 12 months if she does consider a DRO.


so should she continue with her  self managed dmp payments via help from  my new higher wages in the  the meantime. I offered to help or should she just pay a token amount , or none at all.
if so when, her final wage is 23rd Jan, creditors SO due 28 th Jan. after that her income is Zero , unless she gets a new job.

I do believe she would get a DRO. she owes £10000, so do I, all debts in own names, she has few savings and no car. , rent from council.I know almost all the DRO  rules 

but if her wages stop in 3 weeks , how does she produce the right paperwork for DRO , cos I considered one in September, spoke to CAB guy, who was not that good. he wanted 2 months of banks slips showing my  income( which still was too high). so never went ahead with a DRO.

so how does wife show this or does she have to wait 2 months  on no income,after last wage before she applies DRO . and I think even if she gets a new part-time job, the way to calculate what she has left over at end of month is to work out the full household expenses( not including debts), then work out her % to contribute based on ,the ratio of her wages company to mines and if that works out below the £75  at end of month,then she qualifies.

does the running of a car ,eg mot, repair, see ING, insurance, included in the total monthly household expenses when calculating, cos the car expenses are all in my name, it's my old fully  paid for  car.
bit confused, as previously the CAB guy said to me , theses are my bills only for car , they can't be included  in total  household sharing  bills when the partner is considering a DRO , that's partly why I felt the CAB didn't advise correctly.

he said it's only the calculation ratio my wife should make based on shared bills eg rent, food gas,  council tax, water electricity, clothes etc

Also the big one is I know you can't make preferential treatment amongst creditors in last 2 years,  she has never did any  F and F settlements, so that is fine.

BUT , the rules state you can't make payment to one creditor and not to another.( preferential  treatment?)that's where this SO she set up and pays ONLY to the creditors that answered her CCA letters with enforceability. and hasn't paid the unenforceable one or the 2 that ignored her CCA letters.)


 she only pays all the other creditors with her agreed SO with them. that's been 3 months now.

what does she do?  is she in breach of DRO approval. does she have to start payments to these 3 creditors now before she applies DRO.
 or does she carry on  with her current payment plan she set up and not pay these 3.

trying to work out, what to pay, when etc cos our self managed DMP is now different cos of our new job or lack of jobs situation.

ps I read Christians against poverty do DRO applications, looked on their website ,as well as money wellness as the CAB guy was not impressive info I got when I considered a DRO.

ps some questions in my post suit both debt forums, obviously the DRO one belongs here, but there are questions , eg what should she do in the meantime regarding payments to creditors and her standing orders.whilst she looks for a new part-time job. which may suit other debt forum. but hoping for good replies here.



pay your debt at your rate.not what the creditor demands.cos they have no power.they aren't the police.

Comments

  • sourcrates
    sourcrates Posts: 28,549
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    edited 30 December 2023 at 10:19AM
    Stu, if your wife has no income presently, inform creditors of such, and ask for accounts to be put on hold.

    You can ask for 3/6/9 months to hold action whilst she looks for work.

    They won`t accept payments from her if she tells them her situation, do not mention your new job at all, your finances for all intents and purposes, should be kept separate.
    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 [email protected]. 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
  • stu12345_2
    stu12345_2 Posts: 800
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    edited 30 December 2023 at 11:40AM
    Stu, if your wife has no income presently, inform creditors of such, and ask for accounts to be put on hold.

    You can ask for 3/6/9 months to hold action whilst she looks for work.

    They won`t accept payments from her if she tells them her situation, do not mention your new job at all, your finances for all intents and purposes, should be kept separate.
    yes, ok, but if she does need a dro. when can she apply if she needs to show bank statements showing nil income or if she gets a low paying job as soon as her job runs out on Jan 28.
    as dro guy said show last 2 months , but they will all show her current wages going in. and all previous months.
    she would consider a dro from Jan 29. she won't want 2 months of waiting before she can applying, cos officially she's out of income from. Jan 29th.

    so she makes nil Payments to SO due on 28th Jan, that correct?
    even tho that's her last day of work. surely it's money she's earned in Jan that she should make in her SO, then make nothing in Feb?

     plus would this not paying the creditors that never answered her CCA letters or the one that said currently unenforceable be classed as preferential treatment, as shes not paying them for 3 months now, and only paying the ones that proved to be enforceable.

    she thought she was doing the right thing only paying those enforceable debts or those that replied proving so 

    she would be devastated if that doing all these CCA letters months ago ruined things for a potential DRO cos of this preferential rules. I thought it just meant those creditors that were settled early in F and F offers, which she has never done or could afford.
     

     but according to stepchange website it says prefential means making over payments to one and underpayments to another. has she ruined  things now for a DRO

    and should she claim dole money even though she will be sanctioned for months. she would consider a full time job if it was similar days to mines and she could get a bus or was close enough to walk to.
    but a part-time job is her ultimate goal, due to my much increased wages contributing to household.and if any new part-time job was very low wages a DRO would be considered.by her

     cos it makes sense if she landed a wee part-time job, she is going for a interview for one at £12.50 hour, 10 hrs a week , 10 mins walk away. then technically it has a £10000 addition as her £10000 debts  would be cancelled if she does a DRO for a year. would equate to over £32 an hour wages worth!!!! for 12 months! for only working 10 hrs weekly.

    as back in September when we started getting " bullied and back chatted by our condescending bosses" we made a plan to get out of the jobs and whoever landed a good paying ob first would allow us both to resign and the other one to just be happy with a wee part time one or indeed just go back to a homemaker.

    and it was me that landed the higher paying job first.

    but as my new wages are almost worth 2 times our both old jobs combined so, UC is out of the question, too much money coming into household.. I did read about cont based money for up to 6 months for her alone, she has always paid national insurance for years. can't remember what it's called.( but it would be worth buttons if she got sanctioned for 3 to 6 months).

    think cont JSA has been done away with and it's a new thing now, thinks it "new style" JSA
     but she has a few weeks to find a new job before she considers that 

    pay your debt at your rate.not what the creditor demands.cos they have no power.they aren't the police.
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