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    • Rabbitx
    • By Rabbitx 11th May 17, 1:34 PM
    • 273 Posts
    • 1,121 Thanks
    Rabbitx
    With a debt management plan, would the same conditions apply?
    • sourcrates
    • By sourcrates 11th May 17, 1:58 PM
    • 14,031 Posts
    • 13,287 Thanks
    sourcrates
    With a debt management plan, would the same conditions apply?
    Originally posted by Rabbitx
    No, it's unregulated, there are no"official" conditions or regulations in a DMP.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
    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 forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.

    For free debt advice, contact either : Stepchange, National Debtline, or, CAB.
    For Free Legal advice see : http://legalbeagles.info/
    • Rabbitx
    • By Rabbitx 14th May 17, 11:01 AM
    • 273 Posts
    • 1,121 Thanks
    Rabbitx
    In terms of point 1. When surplus income rises above a surplus of 50 a month, the DRO can be revoked, surely if my income increases, simply bigger payments will be made towards my creditors, keeping me within the 50 surplus? ... Or do the rules simply state that if my income is more than 50 pm greater than my budget, that I will automatically be disqualified?
    Last edited by Rabbitx; 14-05-2017 at 11:10 AM.
    • fatbelly
    • By fatbelly 14th May 17, 12:26 PM
    • 12,245 Posts
    • 9,279 Thanks
    fatbelly
    In terms of point 1. When surplus income rises above a surplus of 50 a month, the DRO can be revoked, surely if my income increases, simply bigger payments will be made towards my creditors, keeping me within the 50 surplus? ... Or do the rules simply state that if my income is more than 50 pm greater than my budget, that I will automatically be disqualified?
    Originally posted by Rabbitx
    As your income increases you will get less help from benefits - there could also be more legitimate expenses - so it doesn't necessarily mean the limit will be breached. That's why I am careful to talk about surplus income.

    But you are missing a fundamental point about DROs that you are forbidden to make payments to your creditors during the moratorium and they are forbidden from asking you for payment. It's about relief from your debts.

    There are a couple of exceptions but that's the general rule.
    • Rabbitx
    • By Rabbitx 15th May 17, 12:00 PM
    • 273 Posts
    • 1,121 Thanks
    Rabbitx
    Thank you. What do you mean by more legitimate expenses?
    I am guessing you're referring to things like funeral costs, caring for someone, but
    For example, my washing machine May last another year or may not.
    I have never owned a car, but for employment in Ipswich, it is becoming almost essential.
    My daughter and her family are about to move some distance from me, and I want to be able to visit them.
    Am apprehensive about taking this step, though would welcome the relief from the anxiety.
    Should I provide monthly or weekly budgets?
    Last edited by Rabbitx; 15-05-2017 at 12:02 PM.
    • fatbelly
    • By fatbelly 15th May 17, 1:13 PM
    • 12,245 Posts
    • 9,279 Thanks
    fatbelly
    Thank you. What do you mean by more legitimate expenses?
    I am guessing you're referring to things like funeral costs, caring for someone, but
    For example, my washing machine May last another year or may not.
    I have never owned a car, but for employment in Ipswich, it is becoming almost essential.
    My daughter and her family are about to move some distance from me, and I want to be able to visit them.
    Am apprehensive about taking this step, though would welcome the relief from the anxiety.
    Should I provide monthly or weekly budgets?
    Originally posted by Rabbitx
    Legitimate expenses would include (but not limited to )

    rent
    council tax
    electricity
    water
    gas
    travel costs
    phone costs (landline and mobile)
    tv licence
    food & housekeeping
    clothing
    haircuts

    your intermediary will work with weekly or monthly figures
    • Rabbitx
    • By Rabbitx 15th May 17, 1:18 PM
    • 273 Posts
    • 1,121 Thanks
    Rabbitx
    Thankyou so much X. Will try to bite the bullet! I had no idea before the depression hit, how much support and understanding there is...Am enormously grateful.

    ...and yes...lol...definately need a haircut!...photo not provided, but wild and whimsical, and unprofessional!
    Last edited by Rabbitx; 15-05-2017 at 1:20 PM.
    • sourcrates
    • By sourcrates 15th May 17, 1:23 PM
    • 14,031 Posts
    • 13,287 Thanks
    sourcrates
    In terms of point 1. When surplus income rises above a surplus of 50 a month, the DRO can be revoked, surely if my income increases, simply bigger payments will be made towards my creditors, keeping me within the 50 surplus? ... Or do the rules simply state that if my income is more than 50 pm greater than my budget, that I will automatically be disqualified?
    Originally posted by Rabbitx
    Rabbitz,

    As Fatbelly points out, you dont make any payments to your creditors on a DRO, thats the fundamental point of the process.

    Do your budget correctly, if you meet all the other criteria, and you have less than 50 per month left after all other essential expenses, (not inc debt repayments) then you will be approved.

    Once approved, you simply wait 12 months, (the moratorium period) after which all your qualifying debts are written off.

    You make no creditor payments, they cant ask you to pay either.

    Please, if your unsure how the process works, check out this link :

    https://www.nationaldebtline.org/EW/information/debt_relief_orders/Pages/dro.aspx
    I'm a Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
    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 forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.

    For free debt advice, contact either : Stepchange, National Debtline, or, CAB.
    For Free Legal advice see : http://legalbeagles.info/
    • Rabbitx
    • By Rabbitx 15th May 17, 1:30 PM
    • 273 Posts
    • 1,121 Thanks
    Rabbitx
    Thank you. I have seen the detailed budget planner on here, and will work it out, and cross check it with with the information I have already given to the Money Advice Service. This is very reassuring.
    It's important for me to feel a sense of an ability to progress and care, without the glass ceiling / depression/ poverty trap, it's not just about money, but having doors open to opportunity! So may be this is right.
    Last edited by Rabbitx; 15-05-2017 at 1:48 PM.
    • LT1001
    • By LT1001 21st May 17, 12:12 PM
    • 3 Posts
    • 1 Thanks
    LT1001
    New member and doing my research/preparation, I have a few quick questions regarding a DRO if thats ok?

    1) I am behind on my Council Tax (Bailiffs imminent but not a major concern). Do I continue to make the usual monthly payments direct to council and include this in my budget or does the entire years' bill default and go into the debt?

    2) Do I declare joint debts (e.g. Council Tax) as a full amount or 50% (my share)

    3) There are several small debts which have been sold on and not on my credit report, do I need to find the letters and include these. (if included it takes my debt to 20.5k and full on bankruptcy territory unless I wait until another debt is reduced)

    I am married (both working) with 3 Children, we plan on doing 2 x DRO and waiting until our youngest is in Senior school in 2 years time before my wife goes to work full time. We can just about survive now, but there is almost nothing in the kitty for debts/unexpected costs.
    • sourcrates
    • By sourcrates 21st May 17, 12:59 PM
    • 14,031 Posts
    • 13,287 Thanks
    sourcrates
    New member and doing my research/preparation, I have a few quick questions regarding a DRO if thats ok?

    1) I am behind on my Council Tax (Bailiffs imminent but not a major concern). Do I continue to make the usual monthly payments direct to council and include this in my budget or does the entire years' bill default and go into the debt?

    2) Do I declare joint debts (e.g. Council Tax) as a full amount or 50% (my share)

    3) There are several small debts which have been sold on and not on my credit report, do I need to find the letters and include these. (if included it takes my debt to 20.5k and full on bankruptcy territory unless I wait until another debt is reduced)

    I am married (both working) with 3 Children, we plan on doing 2 x DRO and waiting until our youngest is in Senior school in 2 years time before my wife goes to work full time. We can just about survive now, but there is almost nothing in the kitty for debts/unexpected costs.
    Originally posted by LT1001
    Not sure on the council tax, but i would assume the full year will need to be included.

    I do know all your unsecured debts have to be included in a DRO.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
    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 forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.

    For free debt advice, contact either : Stepchange, National Debtline, or, CAB.
    For Free Legal advice see : http://legalbeagles.info/
    • LT1001
    • By LT1001 22nd May 17, 11:51 AM
    • 3 Posts
    • 1 Thanks
    LT1001
    I have had time to do more research and if I am correct I have to include this years CT as I have lost the ability to pay by instalments, which is a kick in the proverbial as without that included on the debt list I would be comfortably under 20k.

    Would I still be eligible for a DRO if I put all my effort into reducing the outstanding council tax arrears (as it is a priority debt) to the point where I'm under 20k? I know the cost of doing this is almost the same as applying for bankruptcy but I understand that's far more complicated than a DRO.
    • sourcrates
    • By sourcrates 22nd May 17, 12:16 PM
    • 14,031 Posts
    • 13,287 Thanks
    sourcrates
    I have had time to do more research and if I am correct I have to include this years CT as I have lost the ability to pay by instalments, which is a kick in the proverbial as without that included on the debt list I would be comfortably under 20k.

    Would I still be eligible for a DRO if I put all my effort into reducing the outstanding council tax arrears (as it is a priority debt) to the point where I'm under 20k? I know the cost of doing this is almost the same as applying for bankruptcy but I understand that's far more complicated than a DRO.
    Originally posted by LT1001
    Yes, as a priority debt you could not be accused of favoring one creditor over another.

    In reality a DRO is very simple to set up, and is far less invasive than bankruptcy, there are no interviews or regular checks to be made, its a much simpler process.

    I think you have the basis of a good plan.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
    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 forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.

    For free debt advice, contact either : Stepchange, National Debtline, or, CAB.
    For Free Legal advice see : http://legalbeagles.info/
    • LT1001
    • By LT1001 22nd May 17, 12:23 PM
    • 3 Posts
    • 1 Thanks
    LT1001
    Thanks, stress is driving me insane. I had 1 heart attack already don't really fancy another.
    So the new plan is pay down the priority debt and get under the threshold then apply for DRO
    • fatbelly
    • By fatbelly 22nd May 17, 3:50 PM
    • 12,245 Posts
    • 9,279 Thanks
    fatbelly
    Make sure you're not counting any excluded debts (child support, student loans, social fund, tv licence)

    And if you can show that any of those older debts are statute barred, they don't need to be included either - really needs a letter from the creditor admitting that.
    • Sam090884
    • By Sam090884 22nd May 17, 9:16 PM
    • 19 Posts
    • 1 Thanks
    Sam090884
    Hi guys after a bit of advice
    Thinking of going back to College to retrain to help further my career options,
    DRO came through in April I might need to take out a advanced learner loan( like a student loan)to help pay for it will this be allowed?
    • fatbelly
    • By fatbelly 22nd May 17, 9:49 PM
    • 12,245 Posts
    • 9,279 Thanks
    fatbelly
    Hi guys after a bit of advice
    Thinking of going back to College to retrain to help further my career options,
    DRO came through in April I might need to take out a advanced learner loan( like a student loan)to help pay for it will this be allowed?
    Originally posted by Sam090884
    Do you know if there's a credit check for one of those?

    I'm guessing there isn't, and you'd be OK.
    • Sam090884
    • By Sam090884 22nd May 17, 10:14 PM
    • 19 Posts
    • 1 Thanks
    Sam090884
    Hi fatbelly,

    I don't think there is a credit check. Thankyou,

    so nice now not having to worry about bailiffs thanks to my moron of an ex.
    • x__Indigo_x
    • By x__Indigo_x 23rd May 17, 2:27 PM
    • 1,101 Posts
    • 1,287 Thanks
    x__Indigo_x
    I have had time to do more research and if I am correct I have to include this years CT as I have lost the ability to pay by instalments, which is a kick in the proverbial as without that included on the debt list I would be comfortably under 20k.

    Would I still be eligible for a DRO if I put all my effort into reducing the outstanding council tax arrears (as it is a priority debt) to the point where I'm under 20k? I know the cost of doing this is almost the same as applying for bankruptcy but I understand that's far more complicated than a DRO.
    Originally posted by LT1001
    a third party can also pay the council tax debt off and this will not class as preferential . May not be feasible but just an idea
    I am a full time Benefit and Money Adviser for a leading non profit charity and I LOVE my job <3
    Comments posted on this forum do not reflect the views of my employer

    Please note forum police I suffer from dyslexia so my spelling and grammar can be dreadful- sorry but I cant help it!
    • KatieShopstoomuch
    • By KatieShopstoomuch 1st Jun 17, 2:26 PM
    • 488 Posts
    • 396 Thanks
    KatieShopstoomuch
    I thought I would pop on this thread and say hello! As I have been lurking I have battled with debt on and off for several years clearing it - getting more - never learning my lesson! I am now at the stage of applying for a DRO, slightly disappointed in myself but really praying it will go through so I can have a fresh start.

    Winging life....

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