DRO onto DMP HELP

Marrs25

Does anyone have any advice in what to do in this situation? So I've been on a DRO since April with total debts of around £12k my allowed spend budget per month is currently around the same as my earning budget after tax around £1800, I'm now in a position where I could take a promotion which would boost my earnings to around £2200 per month after deductions, so obviously I'd lose my DRO but would all the extra I earn go on the DMP? If that's the case then I'd be no better off for years to come, whereas if I stay on DRO it'll be cleared in April 27, can I adjust the budget higher as food and fuel are alot higher than when I got the DRO, I'd be driving further, need formal clothes, and want to be able to save some money for emergencies and kids Christmas etc I just don't want to take the promotion and be forced to live on the budget I'm on now and the £400-£500 per month better off being swallowed by debts leaving me with nothing like now.. What do I do?

Grumpelstiltskin

When would you actually receive your first increased pay packet?

Seeing as it is now November I would guess it would be approaching March next year.

Marrs25

https://forums.moneysavingexpert.com/discussion/comment/82195249#Comment_82195249

It would be late December early january

sourcrates

You do realise any changes have to be self reported, you are not checked up on in a DRO.

Would you still be within the disposable income threshold with this promotion, and all its associated additional expense?

I would think very carefully about this before acting.

fatbelly

No-one forces you to do anything in a DRO. You either keep it or (in very rare cases) lose it.

If the latter happens, then you sit and wait to see who contacts you. I lost only one that I remember in 10 years of doing loads of them. The client only had one one creditor who never then asked for payment.

Even if you do lose the DRO, give it at least six months before deciding what to do. And don't put your career on hold for nonpriority debts, whatever solution they are in.

Marrs25

https://forums.moneysavingexpert.com/discussion/comment/82195293#Comment_82195293

From what I've gathered updating my budget because of higher food and fuel and clothes for formal job it would leave me around £100 surplus

Marrs25

https://forums.moneysavingexpert.com/discussion/comment/82195370#Comment_82195370

But as soon as the DRO is revoked the creditors will be notified and come asking or send debt collection won't they?

fatbelly

There are companies who buy insolvency debts (for tiny amounts). You may find some of your debts are now owned by them. So you wait to see who writes. In the case I mentioned the creditor had written the debt off during the DRO.

In any case there is no rush to do anything with nonpriotity debts. Stick with the DRO for as long as you can. If you lose it, do nothing for 6 months.

Edit: I'll also point out that the difference between £100 a month surplus and £75 is less than £6 per week. Be creative. Get contents insurance or something.

Marrs25

https://forums.moneysavingexpert.com/discussion/comment/82195515#Comment_82195515

Do you know the maximum allowable figures that'd be accepted for a single occupancy household but with 3 children regularly visiting weekly, for like food shop etc as on the DRO they would only allow £291 per month and £100 per month fuel I easily use £120 fuel now so need Atleast £150 so if you know the full figures I'd be able to use

sourcrates

Your spend is your spend, don`t go looking too deeply into this, as I said, you are not checked up on, and no one will come looking unless you draw attention to yourself.

As fatbelly said, "be creative" and April will soon be here and gone.

ManyWays

Are you getting benefits at the moment? If you are, have you allowed for how much they will drop as a result of the promotion?

Fuel for getting to work - there is no limit, it costs what it costs. And obviously it has gone up a lot. So work out how much.
Groceries - there is a limit over which you have to justify what you spend, but it is more than £290!

And have your energy bills gone up in October? Unless you are on a fixed rate they will be going up more in December

As @fatbelly says, get creative.