DRO Advice

NL52WVW

Hello, first time posting to try and unbury my head out the sand

I've been browsing the net and Money Wellness points me in the direction of a  Debt Relief Order

I have 3 CCJS (Totalling £2295.79) and currently owe £7472.05, I've also have £478.30 in rent arrears with my local authority that i pay off at £25 per week.

Car which according to parkers is worth £1900 on finance with £288 left to pay.

The car has been paid each month (albeit late sometimes) religiously as i work shifts the range from 3am to 1am, would this be seen as a preferential payment?

Can the rent arrears be left off a DRO?, i wouldn't like the risk of eviction if i include them, would it be to have them paid off before entering a DRO? or would that be seen as a preferential payment also?

I started using Zilch for shopping in July which comes off my card automatically then i end up just using it again for shopping or fuel ect, i was going to let them take the next payments and once its paid just close the account down. Looking at some previous posts this doesn't seem like a good idea now

Is anyone able to help with any advice? 

Many Thanks

RAS

Money Wellness have a huge contract to deliver DROs, so you might want to double check the recommendations with Stepchange and or national debtline.

Not that there's anything inherently wrong with DROs but in some instances people's lives and finances don't quite work the way the solution is set up. Also if your job changes, your salary is erratic or you get a windfall, they can fail.

If you are in private rented accommodation, some EAs and LLs are reluctant to accept people on the Insolvency Register. So you need to sort out those rent arrears as a priority.

You may want to do a Statement of Affairs showing more information about your finances? 

ManyWays

I have 3 CCJS (Totalling £2295.79) and currently owe £7472.05
Are the CCJs included in the 7472 number?
Are you making payments to the CCJs? To any of the other debts?

I've also have £478.30 in rent arrears with my local authority that i pay off at £25 per week.
Rent arrears have to be included in a DRO. This is a situation where your local Citizens Advice is better for advice than MW as they will know what the policy of your local authority is, some wipe the debt, others want you to carry on paying to the arrears 

Car which according to parkers is worth £1900 on finance with £288 left to pay.
How many months of payments is that? 

i work shifts the range from 3am to 1am
Are you mainly working those shifts to get extra money to pay for the car or will this continue after the car finance is completed?

Could you post a Statement of Affairs using https://www.lemonfool.co.uk/financecalculators/soa.php?

fatbelly

The situation with current tenancy rent arrears is that they are a qualifying debt and have to be included, but this does not protect you from possession action because of rent arrears. So this is a bit of an oddity in that you are allowed to continue to pay towards the debt, out of your surplus income. I.e. The arrears payment cannot be included as essential expenditure

What I was uncertain about your post was whether you meet the surplus income(<£75 per month) criterion, with or without including the car finance payment. Trying to include that as essential expenditure is going to complicate things particularly if there are only a few months left.

Perhaps you can find a way to complete the contract, as there appears to be equity in the car, then look at what the most suitable strategy is.