DRO HELP

Nellie17

I am in a debt relief order until April next year and I need some advice as I am making my self poorly with stress. 

Am I allowed to withdraw cash from my bank or does it all need to be card payments so I can prove what I spent my money on if they check ?  There I are times where I need to pay cash and I’m too scared to withdraw anything over 20 pounds . 

I will be getting a back pay because I work for the nhs of around £400 as a one off payment , do I need to declare this ? I will have had a pay rise also but because I have dropped hours my wage since going in to the debt relief order has gone down and other bills have gone up , car insurance , council tax , rent etc etc. 

can somebody please help settle my mind 🤣.  I am terrified to do something which will get my order revoked and to end up back with all my debts 😢

stu12345_2

no one now  ever checks what you spend your money  on

 how you spent money is more important before you got your dro as in were you reckless that caused your dro.

now you got one you can spend all you like on what you like.

your only obligations are to inform the official receiver if you go over the £75 limit in any month. or above the £2000 asset limit
but say your wages go up, but hours go down are you the same, probably 

or say wages go up but so does rent council tax gas phone water all at same time, it balances out in a statement of affairs you give to the official receiver. and your dro will carry on

this back pay if it's a income tax refund that's  classed as a one off  asset and as long as it's under £2000 it's ok. but is it a bonus, then it may not be ok.

if it is a bonus inform the  receiver and see if they will class it as a one off and let your dro continue.


you say it's back pay, you mean wages that you are due?

when did you do the hours for the wages to be earned.how long ago 

some will say don't tell the receiver anything cos they never check up.

I chatted to my dro advisor today with similar questions, he said speak to us during your 12 months dro and we will put forward a budget to show you are still within the £75 limit if wages go up but expenses go up at same time.

the debt charity that set yours up should be offering. you advice throughout the 12 months dro
 on the gov website it does say contact the debt charity first about any changes before you contact the official receiver 

Nellie17

So because I work for the nhs my pay rise should have been in April but due to the on going discussions and back and fourth with offers nothing was put in to place by April , so the back pay will be the pay rise I should have had from April and will likely be around 400 ish , all though I will have a “ pay rise “ because I have dropped hours now I will actually be receiving less money than what I was when I was accepted for the debt relief order . 

So it isn’t a bonus just what was owed from the pay rise .  I will ring them and double check prior to receiving the back pay to see what they say. 

stu12345_2

I understand all this back pay will come in one lump sum in one pay date, so it makes it look as if you have done alot of hours in that month when you haven't.

the official receiver should treat this as a lump sum imo and below £2000 imo.and not as overtime 
 in the same way a tax refund is class as a lump sum
each case is based on its own merit

but going forward this higher hourly rate is offset by the drop in hours so that worry should be ok

when you explain this to the debt charity use the phrases  and rules I used cos that is how I would defend it

Nellie17

Yes that’s right but it will be well published within the media that all nhs workers on the agenda for change contract will receive a pack pay in their October pay as a one off  from pay rise which should have been paid from April - so I can prove what it is from and prove that my hours are now less and my wage is now less than when the debt relief order started . I will ring the debt adviser and see what they say . 

stu12345_2

ok make sure the receiver and charity realise this is a lump sum and under £2000 and not simply overtime done in one month 

cos like I said lump sums  £2000 is  allowed

Nellie17

Even without the pay rise my budget would have been fine because my bills have gone up since the debt relief order . Despite the pay rise because of deduction in hours l and rise in bills I am actually worse off. 

Like you say I didn’t work extra hours etc and it’s a one off payment I think it should be fine . I will speak to my debt advisor and see what they say ! 

Thank you ! 

stu12345_2

it's a one off lump sum that will not be given again and again every month.

that's what's important 

the OR is only interested in £2000 lump sums and above or constant overtime that becomes the norm every month and puts you above £75 after expenses have been calculated as well


the OR is never interested if you go worse off, eg a negative budget ,you dont need to report that at all, it's seen as  your problem to cut back on food leisure clothes etc 


let us know how you got on please 

Nellie17

I spoke to the debt advisor he said the back payment is fine because it’s under 500 and not to worry about that and that the order won’t be revoked . 

He said to ring back once the pay rise has come in to effect to go back over the budget , which is pointless because technically there isn’t a pay rise as like I said I have dropped hours and will actually be earning less so I don’t see a reason to go back through the budget really 🤔 

stu12345_2

go through budget just to clarify then it will show the money you have to live on is still the same, or even worse and thus you won't need to report it.

dont see it as having to report a pay rise, it's having to report an amount above £75 monthly  left over and that's a combination of say wages staying the same , but expenses go down, eh you move into a cheaper rental or wages going up but rental goes down or wages go up , rental stays the same.

it's the grand overall effect the OR is interested in and does it give you money above £75

why £500 , what rule is that, the lump sum rule is £2000  max

lol. you got me thinking you are with money wellness

Nellie17

I really aren’t too sure but he said as long as it’s under 500 not to worry , it was a bit of a rushed home call because I was at work and I’m stressed and worrying about it . I will call them back when I know the date of the back pay etc and go from there .