something between DMP and DRO?

pliusas · 9 August 2018 at 8:06AM

Asked payplan about DMP, but if I have no extra hours, I have only left £15 after expenses and they told me impossible to do DMP, because minimum amount should be £100. I can do sometimes extra £85, but not every single month

So they offered go to DRO, but now I scare I will have more than £50 sometimes!!! :eek: :mad:

I mean, if I have left £55-65 each month I am too rich for dro, but too poor for dmp? I am so confused about 4 weekly/monthly payments, not sure how to spread them correctly. And can I increase expenditure during DRO year or I have to agree before i Pay £90?

pliusas · 9 August 2018 at 8:09AM

or just sometimes is OK to spend more on food (for example £35 for weekly shopping instead of agreed £25) and do not tell for anybody?

National_Debtline · 9 August 2018 at 11:17AM

Hi pliusas

If you get paid 4 weekly it can make things a bit more confusing. For the purposes of working out what debt option you qualify for it's best to complete a statement of affairs (SOA) on a calendar monthly basis. Convert your 4 weekly figures by multiplying by 13 (to give a yearly amount) and then divide by 12 (to get a calendar monthly figure).

Do you have to work extra hours at work? If you want the fresh start a DRO can give you by getting your debts written off, you might consider not working the extra hours until the DRO has finished. If your monthly surplus does rise over £50 the DRO could fail.

It is also possible that when you earn more, you may spend more on certain outgoings. Changes to your circumstances should be declared. It's best to contact one of the free debt advice agencies to talk this through in more detail.

Best wishes

Susie
@natdebtline

pliusas · 9 August 2018 at 12:33PM

Susie,

how about savings during DRO? For example I told I need around £100/year for my glasses, so around £8 per month. Should I withdraw this amount from bank and keep in some envelope "for glasses"? I told I need to put £20 "for rainy day envelope" and Payplan agreed it is reasonable, so after 3 months will be £60. Does it mean I cant keep it in my bank, because it will be over £50?

Or they look at monthly income+bills, and if £10 left from Month1, they do not count these money in Month2?
I think I get pay every 5 weeks, so I am a bit comfused.

fatbelly · 9 August 2018 at 7:32PM

You're allowed to have £1000 in 'assets', going into a DRO.

Once you're in the allowances are more generous.

So no problems with small savings.

If your intermediary says you qualify, then run with that. You do need to sort out how often you are paid though. Five weeks would be unusual. Four weeks or calendar month are the most usual

pliusas · 9 August 2018 at 10:47PM

Good to know my £100 savings will be allowed as assets

payment dates are strange, like 4,5 weeks but because only 2-3 days difference from month, so lets say its monthly.

Anyway, I just get an email with reduced work fees ( I am self emp), seems wont be any surplus money at all.

sourcrates · 10 August 2018 at 3:56PM

pliusas,

No one checks up on you once your DRO is approved.

You will not normally have any more contact with either the intermediary or the insolvency service.

It is up to you to tell them about any changes in circumstances, a few quid here and there extra can be absorbed into your budget, or saved as assets, spent on food etc for example, its only permanent major changes you would have to inform them of, remember you can have assets worth £1000.

something between DMP and DRO?

Comments

Categories

Get our FREE Weekly email full of deals & guides - and it’s spam-free