Obtaining a DRO

naturalsworrier · 10 April 2019 at 1:31PM

My partner and I have been together for 4, nearly 5 years. He is in 4K of debt. This debt was all before we met. He got made redundant and has since been unable to keep up the payments, they agreed to him paying £1 a week when he was claiming contributions based job seekers. He is no longer able to claim anything now aS I work.

We have 2 children and now I’m receiving tax credits he’s staying at home while I work.

He literally has zero income, apart from the tax credits which are joint.

The solicitors have been ringing for ages saying they will not accept he’s zero earning 🤨 and that they’re applying for a CCJ.

My partner is very good at burying his head in the sand.. I’ve been telling him to speak to someone for advice and he wouldn’t. Well now they’re threatening a CCJ hes finally made an appointment with citizens advice, they can’t fit him in until 6 weeks.

I think his best option is a DRO. He literally has no assets. I’ve bought eveything worth taking like the TV and PS4. We literally have nothing else worth taking. We live on my low wage and are topped up with tax credits.

I’m beyond stressed worrying about bailiffs turning up, being. Arsey because they will literally look around our house (we have recently just moved into a council house and can’t even afford carpets down yet) and realising there’s nothing worth taking.. what happens then?

Can he get a DRO if he has just income from tax credits? Do they take into account the working tax credit is mine and the child tax is joint?!

How long does a DRO take? Will it go through if a CCJ has already been issued

thanks in advance

ToxtethO'Grady · 10 April 2019 at 5:27PM

This thread covers a lot of things you have asked about.
https://forums.moneysavingexpert.com/showthread.php?t=5982599

Dorothy60 · 10 April 2019 at 5:51PM

Hi. Mine was the thread that Toxteth linked.

As you can see the circumstances are very similar. DIL and I went to CAB yesterday. No appointment. I was willing to wait and if no one was available we would have made an appointment. We were seen straight away. We’d already called pay plan and I’d printed off the statement that they e mailed. I also had a folder full of bank statements, pay slips, tax credits award letters.

Richard spent half an hour explaining everything to us (most of which I knew from reading on these boards), and crucially explained that as there was an outstanding overdraft on the bank account DIL would need to switch banks. I didn’t realise that they would freeze and close the account. He was so kind, patient and reassuring.

There was a long and detailed form to complete for income and expenditure, and she had to sign agreement to allow CAB to view her credit file. We went to Asda and sat in their cafe and completed the forms. Then dropped them straight back in. In about 4 weeks we should get the letter with the bar code on, pay the fee and job done.

Thing is, this is frightening to us, it’s unknown, and DIL felt sick and ashamed. Yet like you her debts were accrued while my son wasn’t working. To CAB it’s all in a days work. They are not judgemental at all.

If you have to wait for an appointment so be it. Use the time to change bank accounts if you need to. Don’t answer the phone to your creditors. Honestly. You will be fine

I can’t thank the people on this forum enough. One in particular. You know who you are! Life changing

naturalsworrier · 10 April 2019 at 6:46PM

Thank you for replying!

My partner hasnt got an over draft anymore, I paid this off for him when he was made redundant and he’s never used it since. Does his bank account still have to be closed? He only has money in from me (I transfer the bill money each month) and money from his family when it’s the kids birthdays.

I don’t get any letters from tax credits - it’s all online.

My partner literally has 0 income. He can’t claim benefits because I’m working full time, so how does this work?! I pay all the bills.

Oh and you sound like a wonderful mother and mother in law

Dorothy60 · 10 April 2019 at 7:22PM

Oh darling thank you. What a lovely thing to say. Now I’m no expert, far from it, however I meant to say that all Richard wanted was one bank statement from DIL and one pay slip. That’s it! Inevened questioned if he wanted to see anything else and showed him my bulging folder lol. Honestly, your partners case sounds so straightforward, and if he doesn’t owe the bank ie no overdraft I’m sure he won’t have to close it.

PLEASE urge him to make an appointment, or even pop in, you might get lucky, we did. Go with him, moral support. Please don’t do what I did and keep putting it off, it’s just longer to worry. Tell him not to answer the phone to his creditors, or if he does, tell them he is taking advice fromCAB. I rang the company with the ccj. DIL gave me permission to speak. I explained re DRO and it would take 4 weeks to process and they agreed not to take action for 28 days.

This will be a fresh start for both of you, and take all the stress and worry away.

Please don’t hesitate any longer

fatbelly · 10 April 2019 at 7:39PM

There's no minimum for a DRO and I've done one this week for under 4k. If creditors are getting aggressive then it may well be the way forward. I do think you need to find a way to stop them phoning though.

ccjs are included - pretty much everything is (not tv licence, social fund, student loans, child maintenance, criminal fines)

The bank account will be OK as long as there is no debt to that bank going in the DRO. If there is then he needs a new one with someone else.

6 weeks is fairly typical for a waiting period to see a debt adviser. I think we are at 5 weeks.

naturalsworrier · 10 April 2019 at 8:36PM

Yeah they’re ringing him at least 10 times a day, leaving voicemails, texting, they don’t send as many letters now. It’s always phone calls. But how they got his number I don’t even know.. we don’t have a landline since we moved house

His debts are from credit cards. The interest kept rocketing up and he was on sick pay so his only option was credit cards. He always paid them until he was made redundant, but because of his age he didn’t qualify for much pay.

That’s a relief that CCJs can be added on, I just have a feeling that it’ll go to court before he gets a chance to sort eveything out. I’m currently on maternity pay too so things are even tighter than usual if they need anything from me.. but like I said the debts all in his name as it was before we met.

Do you know if tax credits will be taken into account for his income? The tax credits don’t cover our bills , so he’ll still be under the £50 allowance

Dorothy60 · 10 April 2019 at 8:49PM

Honestly from what you’ve said you will definitely qualify. Please tell him to ignore the calls. Put his phone on silent. Only answer if it’s on his contact list. This constant harassment must be so draining. You said I was a good mum. Well pretend I am your mum just for now and listen. MAKE AN APPOINTMENT TOMORROW IF YOU HAVEN’T ALREADY. You will both feel better once you’ve done that. Look how much support I got from the wonderful people here. You will too. Keep posting, I know how you feel, really I do, and trust me, I wish I had done this soooner. Learn from my mistake.

Chin up, Darling, you can do this

naturalsworrier · 10 April 2019 at 8:52PM

He has an appointment, but it’s not until 6 weeks time. I’m just so worried about bailiffs turning up.

He doesn’t want my parents knowing, but we literally have no money so I’m going to have to ask to borrow the £90 with me being on maternity pay. I know it won’t be a problem, but he said it’s more shameful for him, it’s hard because he’s obviously been bottling s lot of this up.. he’s slwoly talking though.

fatbelly · 11 April 2019 at 6:33AM

naturalsworrier wrote: »

He has an appointment, but it’s not until 6 weeks time. I’m just so worried about bailiffs turning up.

Bailiffs can only be appointed on a defaulted court order.

Before the court order there has to be a court claim (33 days prided you acknowledge service).

For consumer credit debts, before the court claim, thee has to be a formal pre-action letter with a 30-day reply period

You are nowhere near bailiffs

Dorothy60 · 11 April 2019 at 8:00AM

Blimey FB - you're up early!

There you go NBW, no need to worry about bailiffs.

Pleased that you have an appointment, try not to worry (I know it's hard not to)

As FB says, these predators are toothless tigers, they can threaten all they like but that's ALL they can do.

Just stay calm, tell him to ignore the calls and in 6 weeks or less you can start the process and you will both feel so much better, honestly

Obtaining a DRO

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