Struggling to commit to a DRO

[Deleted User]

Long story short I’ve spoken with Citizens Advise and I currently qualify for a debt relief order but I’m worried about the consequences it will have on me moving forward. I’m currently out of work and will struggle to get a job for at least a year because I’ve just been given a community order which is a criminal record for a year. I get universal credit with the LCWRA element because of my mental health and I also get PIP.

if I go ahead with the DRO I’m worried that I’ll have to stay unemployed for a full year. If I managed to gain employment I could cancel my benefits but I feel that is a risk not worth taking. I’m also worried that it will have massive consequences when it comes to renting. I live in a house share and my room is far too small, it’s effecting my mental health and I want to be able to move to a new house share. If I go insolvent my fear is that no landlord will take me and then I’m stuck here for six years which is not an option.

i do have the other option of trying my hardest to get a job and starting a DMP but with my mental health, criminal record, disabilities and all the rest it might be wise to commit to the DRO and have a fresh start.

Any advice would be appreciated. 

fatbelly

[Deleted User] said:

Long story short I’ve spoken with Citizens Advise and I currently qualify for a debt relief order but I’m worried about the consequences it will have on me moving forward. I’m currently out of work and will struggle to get a job for at least a year because I’ve just been given a community order which is a criminal record for a year. I get universal credit with the LCWRA element because of my mental health and I also get PIP.

Well that sounds like it dovetails with your 12-month moratorium perfectly 

Go for it. They are free.

If your circumstances do change over the next 12 months, post again in the DRO section

sourcrates

Can`t see a downside to this, most landlords only do a landlord check, which is basically to confirm you are who you say you are, plenty of folk rent just fine whilst in or after a DRO.

Take the opportunity now to get rid of your debt, a year goes by surprisingly quickly.

ManyWays

If you need to move soon, then it's probably best to do it now, before a DRO. However, if you can't afford to move, then the next 12 months, when you know it will be hard to find work, will be less stressful with the debts at least sorted and you having a clean start after that.

[Deleted User]

fatbelly said:

[Deleted User] said:

Long story short I’ve spoken with Citizens Advise and I currently qualify for a debt relief order but I’m worried about the consequences it will have on me moving forward. I’m currently out of work and will struggle to get a job for at least a year because I’ve just been given a community order which is a criminal record for a year. I get universal credit with the LCWRA element because of my mental health and I also get PIP.

Well that sounds like it dovetails with your 12-month moratorium perfectly 

Go for it. They are free.

If your circumstances do change over the next 12 months, post again in the DRO section

Thank you for the response. I went ahead with it in the end and it got accepted. I do have a question about changing circumstances. My rent might be increasing soon which I wasn’t aware of when I applied. If I inform Universal Credit about the change my housing allowance will rise.

Am I right in thinking that I will need to report the rise in income to the official receiver but because it doesn’t change my disposable income the DRO wouldn't be revoked ? My budget was in a deficit of a couple of hundred quid anyway which was accepted because PIP covers some of my expenses. 

sourcrates

[Deleted User] said:

fatbelly said:

[Deleted User] said:

Long story short I’ve spoken with Citizens Advise and I currently qualify for a debt relief order but I’m worried about the consequences it will have on me moving forward. I’m currently out of work and will struggle to get a job for at least a year because I’ve just been given a community order which is a criminal record for a year. I get universal credit with the LCWRA element because of my mental health and I also get PIP.

Well that sounds like it dovetails with your 12-month moratorium perfectly 

Go for it. They are free.

If your circumstances do change over the next 12 months, post again in the DRO section

Thank you for the response. I went ahead with it in the end and it got accepted. I do have a question about changing circumstances. My rent might be increasing soon which I wasn’t aware of when I applied. If I inform Universal Credit about the change my housing allowance will rise.

Am I right in thinking that I will need to report the rise in income to the official receiver but because it doesn’t change my disposable income the DRO wouldn't be revoked ? My budget was in a deficit of a couple of hundred quid anyway which was accepted because PIP covers some of my expenses. 

No, rent is not disposable income is it, you do not need to report this.

Best to keep radio silent and just let the 12 months tick away.

[Deleted User]

Thank you @sourcrates one last question. When I signed up for my DRO I was told that my PIP was offset and not classed as income. Do I need to make sure that any PIP saved stays below the £2000 asset limit ? I’ve seen that back payments aren’t counted towards that limit but I can’t find any information on the accumulation of ongoing offset PIP payments. 

ManyWays

In a year, when you are currently on a negative budget, it doesnt seem likely you will be able to save over 2k, does it? I suggest using the money for keeping the house nice and cosy, having a healthy fresh diet, and buying new clothes were they are needed