Debt Relief Orders (DRO) - Information & help thread

fatbelly · 26 October 2017 at 9:13PM

Faisal2110 wrote: »

That's great - thank you. Question is though, if my husband has money left over and I have zero income, surely that is his money and not mine? If that makes any sense? How can I have £50 left if I don't earn any money?

You said 'my income currently is child tax credits and child benefits'

and asked 'how would I show my expenses '

That is the question I answered.

Now if you are saying 'my income is zero', then your proportion of the expenses would be zero and your surplus would be zero.

But I would want proof that the child benefit and child tax credit claims were not in your name.

Faisal2110 · 27 October 2017 at 9:12AM

Firstly, apologies Fatbelly for not making myself clear. The benefits I get are in both my husbands and my name for our three children. That is what I meant by I have nothing as all we get is child tax credits and child benefit which helps with the children's costs (clothes, lunch money, misc)? The child benefit is my husbands name alone if that makes any difference?

fatbelly · 27 October 2017 at 2:22PM

Faisal2110 wrote: »

Firstly, apologies Fatbelly for not making myself clear. The benefits I get are in both my husbands and my name for our three children. That is what I meant by I have nothing as all we get is child tax credits and child benefit which helps with the children's costs (clothes, lunch money, misc)? The child benefit is my husbands name alone if that makes any difference?

Then you could pitch it as having no income.

It makes little difference. I assume you would show as <£50 whichever way it is calculated

debt_doctor · 27 October 2017 at 3:58PM

Hi,
Intermediaries do 'variations on a theme' when it comes to the £50 disposable income figure - not right or wrong - just different.
For me, in your case, I would apportion 50% of your tax credits (as it is a joint claim) as your income and 'spend' it on a portion of your household expenses.
If your income was apportioned as a percentage of household income and similar with household expenses then that would be fine too.

In any event, it seems you will qualify.

DD

Just_Peachy · 3 November 2017 at 12:26PM

Hi, I have spoken with a CAB advisor and I have been told that I do qualify for a DRO, which I am happy about. but what concerns me (and I forgot to ask at my appointment) is what happens if I get a new job and therefore more income after getting a DRO. I currently only work 12 hours per week due to having young children but I would like to get a job with more hours some time next year (once my mother in law is able to help with childcare) or another job to work alongside the job I have. so I would probably be going from working 12 hours per week to about 25 hour per week, which would obviously up my income a bit. Is this allowed while having a DRO?

fatbelly · 3 November 2017 at 1:32PM

Just_Peachy wrote: »

Hi, I have spoken with a CAB advisor and I have been told that I do qualify for a DRO, which I am happy about. but what concerns me (and I forgot to ask at my appointment) is what happens if I get a new job and therefore more income after getting a DRO. I currently only work 12 hours per week due to having young children but I would like to get a job with more hours some time next year (once my mother in law is able to help with childcare) or another job to work alongside the job I have. so I would probably be going from working 12 hours per week to about 25 hour per week, which would obviously up my income a bit. Is this allowed while having a DRO?

If your surplus income increases to over £50 per month, then you should let the DRO Unit know.

Just because you earn more, it doesn't mean you breach the limit.

For example your starting point may be negative - it would take a lot to get you to >+50

You would also get less means-tested benefit if your wages increase - less housing benefit, council tax benefit, income support/JSA/ESA - it might not make a great difference to your surplus.

Working more days may mean greater travel expenses too.

Just_Peachy · 3 November 2017 at 5:35PM

fatbelly wrote: »

If your surplus income increases to over £50 per month, then you should let the DRO Unit know.

Just because you earn more, it doesn't mean you breach the limit.

For example your starting point may be negative - it would take a lot to get you to >+50

You would also get less means-tested benefit if your wages increase - less housing benefit, council tax benefit, income support/JSA/ESA - it might not make a great difference to your surplus.

Working more days may mean greater travel expenses too.

Thank you - do you have to let them know of these changes for the whole 6 years the dro is on credit file or is it just the 12 months after the dro starts?

fatbelly · 3 November 2017 at 5:49PM

Just_Peachy wrote: »

Thank you - do you have to let them know of these changes for the whole 6 years the dro is on credit file or is it just the 12 months after the dro starts?

Just the 12 months

brute03 · 14 November 2017 at 11:02AM

Hi

Just been reading through the posts above and are very helpful as I am looking to go through a DRO so thank you.

My question is I have 2 cars 1 on HP (which I will be gladly to give back) and the other we own. I have read somewhere if it is worth more than £1000 (it's probs worth between £1000-£1500) then they would use whatever it's worth towards paying off some debt. My question is, we would really rely on the 2nd car as I am the only person that earns in the family, do they take this in to consideration or not?

Also

Once DRO is accepted, what is life like within those 12 months I.e are hou checked up on? Do you feel like you are being watched etc?

Thank you

fatbelly · 14 November 2017 at 8:21PM

brute03 wrote: »

Hi

Just been reading through the posts above and are very helpful as I am looking to go through a DRO so thank you.

My question is I have 2 cars 1 on HP (which I will be gladly to give back) and the other we own. I have read somewhere if it is worth more than £1000 (it's probs worth between £1000-£1500) then they would use whatever it's worth towards paying off some debt. My question is, we would really rely on the 2nd car as I am the only person that earns in the family, do they take this in to consideration or not?

Also

Once DRO is accepted, what is life like within those 12 months I.e are hou checked up on? Do you feel like you are being watched etc?

Thank you

I'm not sure what you have been reading but that's a bit garbled

1. You say you are going for a DRO but the car 'we own' is worth £1000-1500. You need to work out whose car it is. If it's your partner's, then it is nothing to do with your DRO. If it is yours, then you need to get a valuation from Parkers Guide because if it is valued at over £1k, it precludes you from a DRO. It's black and white - you either get the DRO or you don't. No-one will be selling your car or trying to get the equity out of it.

2. It is your responsibility to inform the DRO team of any relevant changes during the moratorium. There are no routine checks.

3. Cars on HP are a complex area in DROs. If you are committed to losing it then do a voluntary termination now and get the final balance figure to put into your DRO

If you have further questions, please ask.

Debt Relief Orders (DRO) - Information & help thread

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