Confused and a bit upset about DRO

Hi Guys,

I have been reading the threads and saw some information from the money advice service that has reassured me somewhat, but it was a while ago and my partner now earns so I am not sure what to do, having spoken to my advisor has worried the hell out of me and is making my anxiety skyrocket.

I have also been told conflicting advice some of which is ringing in my ears as I think it was a guilt trip to persuade me to use the companies services (private debt company).

Basically, I am disabled and have not been working for a few months now. At the time of my DRO application my partner was also unemployed. But he has a separate income which we were using to pay the bills, but we were at a deficit of about £300.

I decided to go through OVO / plymouth CAB as there is a fund. However, my partner has now got a job which I believe makes us no longer qualify for the fund. Which I am happy with as that's only fair. I do not earn any money and just have PIP.

I am really scared that because my partner now has a job I will no longer be eligible for a DRO. It's my debt and I don't want to use his money to pay it ...and all the bills as well pretty much. It's adding to my guilt and the feeling of a complete lack on independence.

Can anyone advise what may happen so I can prepare myself?

TIA x

Comments

  • MovingForwards
    MovingForwards Posts: 16,860
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    Why are you not eligible for a DRO? If your only income are benefits then that's your income.

    I think your advisor hasn't explained things too well for you.

    They are individual and not joint DROs. Just because your partner is employed now it doesn't mean you have any money left, it doesn't mean you have to ask him for money towards your debts.

    Can you complete a statement of affairs so we can see income / outgoings / debts?

    The members who have a lot of knowledge about DROs will be along shortly, I didn't want to read and run.
    Mortgage started 2020, aiming to clear it in 2026.
  • sourcrates
    sourcrates Posts: 28,715
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    How far into your DRO are you ?

    The only ongoing requirement for earnings is that your disposable income after all household bills are paid, is £50 or less.

    It would not be difficult to achive this if you only have the one wage coming in, your budget just needs to show your deficit is below this figure, and everyones happy, costs very rarely go down do they, always up.

    No one is checking up on you, just balance the budget so it shows this figure and carry on regardless.
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  • fatbelly
    fatbelly Posts: 20,380
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    In a DRO application you have to list the debtor's income and their share of the expenditure.

    PIP counts as both income and expenditure as it is paid for a care/mobility need

    If the partner's income increases then theoretically the debtor's share of the expenditure decreases. But with a starting point of negative 300 it would have to be a massive increase to take it above +50.

    Feel free to ask more questions.
  • sourcrates wrote: »
    How far into your DRO are you ?

    The only ongoing requirement for earnings is that your disposable income after all household bills are paid, is £50 or less.

    It would not be difficult to achive this if you only have the one wage coming in, your budget just needs to show your deficit is below this figure, and everyones happy, costs very rarely go down do they, always up.

    No one is checking up on you, just balance the budget so it shows this figure and carry on regardless.

    I had to wait for 12 weeks before the start of the DRO, I am about halfway, maybe a bit more. I have sent them all my debt information and they have notified everyone.
    Basically my partner gets a private pension and a wage now which is about 1700 a month combined after tax and I get standard PIP living 254 a month.
    I am generally a bit confused because we have previously been living on a very limited budget but now we can increase things like food, and actually pay bills like council tax. I would also like to use my PIP for what it is meant for and get massages and pay for transport when I go to the Drs (I don't leave the house other than this really).
    But this still leaves us in combination with more than £50. But that is his money. I use all mine up paying bills and things. I am not paying anything towards my debts at the moment which total around 10k.
    Does that make sense? I am feeling foggy brained and more confused today. I will try and post a budget thing.
  • fatbelly
    fatbelly Posts: 20,380
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    I had to wait for 12 weeks before the start of the DRO, I am about halfway, maybe a bit more. I have sent them all my debt information and they have notified everyone.
    Basically my partner gets a private pension and a wage now which is about 1700 a month combined after tax and I get standard PIP living 254 a month.
    I am generally a bit confused because we have previously been living on a very limited budget but now we can increase things like food, and actually pay bills like council tax. I would also like to use my PIP for what it is meant for and get massages and pay for transport when I go to the Drs (I don't leave the house other than this really).
    But this still leaves us in combination with more than £50. But that is his money. I use all mine up paying bills and things. I am not paying anything towards my debts at the moment which total around 10k.
    Does that make sense? I am feeling foggy brained and more confused today. I will try and post a budget thing.

    If you are in a DRO you are forbidden from paying qualifying debts. That includes Council Tax, if that is included. As this is a joint debt the liability switches to your partner

    If you had never lost the right to pay council tax in instalments then those payments can continue with joint liability

    The amount you have surplus as a couple is not relevant. A DRO is an individual solution.
  • If your only income is £254 per month then I can't see you having more than £50 left over after you've paid your contribution to food, water, gas/elec, paid for your transport etc.
  • Just to update as I have only just spoken to my advisor. She started to say that I was no longer eligible for a DRO because of my partners income. I corrected and said I do not think this is correct. So now I have to complete an income and expenditure just for me...
    I am so frustrated...I have been completely honest all the way throughabout how hopefully my partner would get a job, and that these are my debts not his. I am also really upset because I am unwell, I have very little energy or recourse at the moment to continue filling out all these forms, and I feel I am not with a good or knowledgeable advisor / company. I think it's too late to start again, and TBH I really don't have the energy!
    Thank you for all your help, because I don't know where I would be without your advise.
  • fatbelly
    fatbelly Posts: 20,380
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    Well the devil's in the detail here. But as you effectively have zero income (as PIP can be excluded) it's hard to see how you can have over £50 per month surplus.

    Is OVO / plymouth CAB actually doing your DRO? It should n't be difficult for them to check with the DRO Unit as they're in the same building!

    Stick with it - it sounds like they're looking at it again.
  • fatbelly wrote: »
    Well the devil's in the detail here. But as you effectively have zero income (as PIP can be excluded) it's hard to see how you can have over £50 per month surplus.

    Is OVO / plymouth CAB actually doing your DRO? It should n't be difficult for them to check with the DRO Unit as they're in the same building!

    Stick with it - it sounds like they're looking at it again.

    yes they are doing my DRO...I didn't know they were in the same building. Thank you for your reassurance.
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