Is a DRO an option

sonnet72

I started a thread today about my Tesco loan being sold to PRA group. Early days, I’m thinking about my options. Would a DRO be advised? My husband outright owns our home and I’ve never paid bills or have any vested interest in the property. My car is a Motability Venice in my son’s
name.

My only income is the carers allowance I get for my son. Although I receive benefits into my bank accounts they are for my son’s disability's as I’m the appointee.

I’ve considered a DRO before was just afraid that they would say my home is part my asset, but stepchange told be ( a couple years ago) that this wouldn’t be the case as I haven’t invested into it.

My concern now is that I’ve recently applied for PIP following a stroke 2 years ago which has left me with long term health issues. I received a decision of zero payment a couple of months ago and I’ve appealed. I’ve been told my appeal decision will take to to 15 weeks .
IF I am eligible then there will be circa 18 months of back payment due to me. My concern is that even if I can show that with my current carers allowance and a speculative PIP award that I don’t have hardly anything left at the ends of the month- IF I get a lump sum of back payment - will I no money be eligible?

fatbelly

Yes a DRO is a possibility.

A lump sum backpament of PIP is disregarded

https://www.gov.uk/guidance/debt-relief-orders-guidance-for-debt-advisers#benefits--lump-sums-and-ongoing-income

ManyWays

IF I am eligible then there will be circa 18 months of back payment due to me.
PIP back payments usually only go back to the date you applied for PIP. Not to when you may have been eligible

@fatbelly has said that a lump sum of PIP is disregarded anyway.

From what you have said, a DRO sounds like much your best option, giving you a clean break away from all the old debts.

sonnet72

thank you I think I’ll take that plunge. As for the date I applied over 18 months ago, took forever to get my first rejection and then they’ve estimated 15 weeks for my mandatory reconsideration outcome

ManyWays

That is a shocking timetable. If/when they reject the MR, go to your local Citizens Advice for help with the full appeal

sourcrates

Appeals for PIP are currently taking, on average about 14 months to be heard.

I suspect you will have to take this to appeal, as most MR`s are not upheld, they nearly always concur with the original decision maker.

sonnet72

Called Step Change today and they put me through to some other agency which in found odd . Other agency ( forgot the name) is pushing for an IVO - not sure myself - her argument is that my husband can help me financially to pay the monthly amount - but 1. I don’t want to involve my husband in the mess I made and 2. He may not agree anyway.

Then she said DRO’s are problematic and will affect my right to claim universal credit if I need to … which i found bizarre because in didn’t mention universal credit to her at all

Grumpelstiltskin

Do not touch an IVA with a barge pole.

Hsave you read the online Stepchange DRO advice?

Debt Relief Orders. Eligibility & How To Apply. StepChange

ManyWays

I think you must have spoken to Money Wellness.

The idea of your husband paying an IVA for you is horrible.

i suggest you go and talk to your local Citizens Advice about a DRO. They are much more knowledgeable

RAS

Stepchange lost the contract to run DROs three or four years ago. The Government granted it to Gregory Pennington, rebranded as Money Wellness. GR were possibly the biggest provider of IVAs, for which they got nice fees. They had to recruit heavily to staff the DRO contract.

So newer Stepchange advisors have never run a DRO and MW has a lot of new advisors. Do go to CAB. Or Payplan who also offer DROs. CAB might be better if you need 1:1 advice.

ManyWays

Payplan did 7 DROs in September. Citizens Advice did over a 1,000.