DRO application, what a shambles!

stu12345_2

 morning all, sorry for early post, but going out early all day.
anyway I spoke to money wellness on Monday saying moving from full-time to part time job next week. about DROs . enquiry,
( cos payplan don't do dros and who  said use the CAB)
 but I choose money wellness who said call them back when that happens.eg I start my new part time job.

but for some reason I got a call on Friday from astute finance? who said we can arrange a one hour application for a dro with money  wellness, then got transferred to money wellness rep who took initial details., she asked why did I move jobs, I said current job misled me about my hours I have to work and made me do 55 , and even 70, instead of 35 hrs contract and burned me out emotionally and physically.

I said wife wants to do DRO to, they said wife can join in appointment on phone application next week.with money wellness.
it's for 15th June, I said couple of questions, if you want bank statements it will show old employer higher full-time wages going through and final one going in on 29 June.
or do you just want to see earnings contracts from my new employer as proof of new income? instead of bank statements to show wages proof.as bank statements aren't suitable cos of new job just starting 

and about between 2 months and 6 months ago , wife and I settled two debts for £200 and £70,( early settlement offers) is that major preferential treatment, enough to reject dro.

I read it's a very minor preferential act we did, cos debts totals are £12500 and £9500 and major is eg repaying  a family.loan and not paying any creditor ( we have no family loans)

do our other creditors get told about this?
as in to complain about. dro that maybe got  accepted.

and twice my wife has streamed some of her wages in advance, she can do that with her employers app, take bit of wages in advance, before she's paid, but it will show lower wages one month,is that a problem, if she shows banks statements instead of wage slips.regarding income, expenditure proof.

and I'm applying like mad for an extra second  part time job, just to increase wages if dro fails, but if dro approved, with the one new part  time job I have,
 then what do I do if I get one of those other additional part time jobs, reject job? cos it would take wages over the £75 threshold left over.and fail dro

basically worried if I get the second part time job before 15th June, cos the extra income  would fail dro , unless I adapt figures to suit? the £75 limit 

Brie

You're better off getting the job before you apply for the DRO.  If you get it after the DRO is likely to fail and you won't be able to apply again for some time (1 year? or 2?)

provide the bank statements and also your current payslips to clarify income.  

don't "adapt" anything as that is akin to lying and that will definitely cause a problem.  

fatbelly

I think I discussed DROs with you many months ago.

If you flag up a preference on the application, it is just for the Insolvency Service to consider.Creditors are just notified of the DRO, if it is granted

stu12345_2

is there a time limit from discussing a dro, cos I had the telephone chat with cab in October last year, but I didn't go ahead with it, he sent me a link asking me for documents with a time limit in the link, but I couldn't go ahead as I was still in full-time employment back then

Brie the time limit is 6 years from getting a dro to getting another I think

yeah I have one part time job, but need answers for the other before the money wellness application 

stu12345_2

how will car costs be split in our dro applications for wife and I.
we both use one car, eg petrol, but the road tax, mot, insurance, RAC breakdown surely is my expense as it's in my name.

I was reading that in a dro , expenses should be dealt on an individual basis, where in a dmp it's joint house hold expenses that's worked out. and the officer doing the assessment should work out who is liable for what in household costs in a dro.

but I spoke to money wellness and they said, no problem we can make the car costs both joint expenses shared

but last year I discussed this with cab officer, who said the car overheads would be in my expense only, except the petrol ( despite sharing using car with wife) and said these costs would take me into a  deficit budget 

fatbelly

It sounds like MW have already answered you question.

Does that cause a problem?

stu12345_2

it was the rep on the phone that said no problem, we will make all expenses shared, it wasn't from   the advisor I have the appointment with, I'm not sure if she was just guessing in order to make an appointment for me

the problem is just done an income expenditure calculation, we have £3 left over for 9 creditors.

but £88 expenses are the car costs , excluding petrol which would take me into a negative budget, hence fail dro, but put wife over the £75 threshold as she would not be paying these costs. and fail her dro.

all other costs, eg food, gas, rent are split based on income, she earns twice what will earn, hence a 33/66 split


but if  car overheads were shared as a joint expense , it would be fine for us both

RAS

I suspect you are overthinking this. Just tell MW how you want the vehicle costs allocated. Don't start volunteering information about whose accounts stuff has come out of, and don't get into detailed information about who uses what. 

If you've time  and can do so without penalty transfer one DD to the missus. Otherwise just explain that you used to earn the higher income but now you earn less so she's going to be paying.

stu12345_2

RAS thanks, it's just they ask for assets and the car is mines, they do a valuation check with reg number, and doesn't matter about direct debits etc,( anyway  insurance , break down cover and tax are paid in one go every year by me )they don't ask for bank statements, just wage slips or wages contracts.for proof of income, and a rent, council tax bill.


don't think they want to see your Tesco receipts , RAC cover invoice etc

 calculations are meant to be  down to individual overheads, I mean I'm a diabetic, so get free eye tests, prescriptions,  but that section in dro is classed as normal  shared expenses., even if I don't pay, the dro guy won't ever know that or the fact my wife burns most of the £70 a month fuel, but that's a normal shared expense.

I guess it comes down to the experience I had with  the CAB guy I had, he would not budge on the fact we both use car and share MOT, tax, insurance, he said it's my expense and my expense o.nly as the car belongs to me.

wife is the main earner , it will be split 66)33 anyway ALL overheads which would keep us within the £75 limit per month max

fatbelly

I've posted elsewhere recently that we have a situation where there are two main DRO suppliers

CAB, who make things overcomplicated and bureaucratic

Money Wellness who do the opposite

I've linked you to the rules before when someone was banging on about deprivation of income, which isn't a rule.

Neither is there anything about a negative budget. It just has to be <£75

stu12345_2

dro and bankruptcy application not recommended, I had my phone call advice in last few days and the advisor said that there is a small amount of benefit we must claim UC,  in order for the insolvency practitioner to approve either a DRO or bankruptcy, as creditors want to see debtors maximise all sources of money.

we said we don't plan on going full-time for a while, hence we could not do the claimant commitment with DWP 

and even if I said yes and DWP forced us to go from part time to full time, eg found a job that myself and partner would allows us to come off UC, then the earnings are too high and DRO cancelled.

the advisor said same rules for Bankruptcy, must claim UC, must look for 35 hrs, claimant commitment.

if I or we claimed and hence dro approved ( cos we satisfied creditors by looking for 35 hrs  full-time) but then we failed to satisfy DWP and UC stopped, by not looking, then was told the insolvency practitioner would revoke DRO mid term, and we would have to wait 6 yrs to reapply 

if we upped our hours by 5 a week, we would not get any UC, then  earn too much to qualify, but that would then send us well over the £75 limit DRO.

the only solution they said is £1 each creditor monthly,cos  earn too little for a dmp.

I knew it would be a waste of time 

basically they said you're own your own, we can't help

and at present ,our income , expenditure virtually balances out even on part time jobs, we don't need any dole money , but IP said we must claim which opens up a can of worms

dmp, dro, IVA, bankruptcy, none of them fit