Thinking of doing a DRO. HELP NEEDED!

edited 30 November -1 at 1:00AM in IVA & DRO
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Sausage79Sausage79 Forumite
12 Posts
edited 30 November -1 at 1:00AM in IVA & DRO
So I’m thinking of doing a DRO (if I’m accepted) and needed help with a few things if anyone could answer I’d really appreciate it.

My story - I have around 18000 worth of debt over 7 different loans and credit cards. This has been built up over a period of 11 years. From been a single parent, having hours reduced at work, a restructure which reduced pay, maternity leave, then hours reducing again on return. Currently have a partner of 5 years he doesn’t know the extend of the debt as this was building before we got together. Really struggling to pay money back which is making the debt higher as having to use cards for essentials.

The questions I have are

Will partners earnings be counted as none of the debt is joint it’s all mine?
What do I need as proof payslips? Bank statements?
Do I reduce the expenditures due to having a partner? Just include my share?

Any help would really be appreciated.
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Replies

  • fatbellyfatbelly Forumite
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    Sausage79 wrote: »
    .

    The questions I have are

    Will partners earnings be counted as none of the debt is joint it’s all mine?
    What do I need as proof payslips? Bank statements?
    Do I reduce the expenditures due to having a partner? Just include my share?

    Any help would really be appreciated.

    You should get yourself linked with an intermediary as soon as possible. You're getting towards the limit.

    They will want to know your partner's earnings in order to allocate the expenses fairly. What proof needed depends on the intermediary - nothing is set in law.

    You'll need to be banking somewhere not connected to your debts.

    Do you meet the other criteria OK?
  • Thankyou for your reply.

    I’m going to go to the citizens advice tomorrow and see if I qualify.

    My partner transfers me money weekly as all bills come out of my account as I’m paid monthly and he’s paid weekly. We earn around the same and split everything 50/50 other than my debt payments which he doesn’t really know the extent of.
  • edited 14 April 2019 at 5:42PM
    MusicMusic1968MusicMusic1968 Forumite
    5 Posts
    edited 14 April 2019 at 5:42PM
    Sausage79 wrote: »
    So I’m thinking of doing a DRO (if I’m accepted) and needed help with a few things if anyone could answer I’d really appreciate it.

    My story - I have around 18000 worth of debt over 7 different loans and credit cards. This has been built up over a period of 11 years. From been a single parent, having hours reduced at work, a restructure which reduced pay, maternity leave, then hours reducing again on return. Currently have a partner of 5 years he doesn’t know the extend of the debt as this was building before we got together. Really struggling to pay money back which is making the debt higher as having to use cards for essentials.

    The questions I have are

    Will partners earnings be counted as none of the debt is joint it’s all mine?
    What do I need as proof payslips? Bank statements?
    Do I reduce the expenditures due to having a partner? Just include my share?

    Any help would really be appreciated.

    My husband did a DRO and was accepted. He had to change banks and he paid £90 for the DRO, even if they dont accept you, you wont get the money back as far as I know. He had to show his earnings, and how much he paid out for things like rent council tax etc. and what he was left with, you have to be left with a small amount each week before they will accept you, I cant remember what the amount was. I think they may take into consideration your partners earnings as well, how much is coming into the home and how much is left. But the debt will clearly be with you if you had taken it out in your name only. Your credit file will be affected but I guess you know that. Once accepted you cant borrow or buy anything on instalments I think its for 3 years. But double check on everything as my husband did it over a year ago now,, so I cant quite remember all the details..
  • Thankyou for your reply.

    It’s my last option really. After rent, bills, 2 children, nursery fees, rise in living and barely any rise in wages.

    It’s something I have been looking at for a while now but just needing to pluck up the courage to do something about it. Feel really embarrassed to be honest, it’s not something I ever wanted to do.

    I think I meet all the criteria.
    I don’t have any assets
    Left with less than £50 per month after expenditures
    Under 20,000 of debt

    Is there anything else you need to meet?
  • fatbellyfatbelly Forumite
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    Sausage79 wrote: »
    Thankyou for your reply.

    I’m going to go to the citizens advice tomorrow and see if I qualify.

    My partner transfers me money weekly as all bills come out of my account as I’m paid monthly and he’s paid weekly. We earn around the same and split everything 50/50 other than my debt payments which he doesn’t really know the extent of.

    That sounds good.

    At some point you probably should say to him 'this is the problem and this is the solution'. After all, you will be on a public database (insolvency register).

    To address some of the points musicmusic made - yes the fee is £90.

    An application should never be rejected as your intermediary should not be putting it through if it is defective.

    As long as you stay within the qualifying criteria, the debts are written off at the 12-month point and then the world's your oyster. It stays on your credit file for 6 years and so you'll need to work on repairing your credit file, and probably avoid getting into anything joint with your partner.

    The savings criteria is 'less than £1000' for entry but if you come into a larger lump sum during the 12 months the rules are more flexible.

    The surplus income rule is 'less than £50 per month' and that stays as the rule for the 12 months.

    Likewise the car rule is 'worth less than £1000 on Parkers Guide'

    As far as I'm aware nothing has changed recently. It's a successful scheme that has just had its 10th anniversary.
  • Thank you again you have been really helpful.

    I know I really must speak to him, I will go get some advice first then deal with the matter least then I may have a solution.

    The only savings I have is £200 in a credit union which I save up for summer camp for my son through the summer holidays whilst I work which has to be paid in cash.

    I don’t drive I rely on public transport. Buses, trains, taxis. Do these count as expenditure?
  • fatbellyfatbelly Forumite
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    Sausage79 wrote: »
    Thank
    I don’t drive I rely on public transport. Buses, trains, taxis. Do these count as expenditure?

    Yes, whatever you spend on these things goes down as travel costs
  • edited 15 April 2019 at 3:55PM
    sourcratessourcrates Forumite, Board Guide
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    edited 15 April 2019 at 3:55PM
    Just be aware that your budget at month end must show a deficipt of £50 or less, if its £51, it will be rejected, if its £49 it wont, just bear that in mind when working out your budget.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File and Ratings, Bankruptcy And Living With It, boards. "I volunteer to help get your forum questions answered and keep the forum running smoothly".
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to:
    [email protected].
    Any views expressed are mine and not the official line of MoneySavingExpert.com.
    "I don`t trust Bankers, I don`t trust Banks, and I don`t trust you.........Private Frazer".
    For free debt advice, contact either : Stepchange, National Debtline, CitizensAdviceBureaux.
  • Thank you

    I have just left citizens advice. Was given some paperwork to fill out and told I will get a call to arrange an appoint with a debt advisor.
  • Anyone have any idea on the waiting times to see a debt advisor at the moment?
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