DRO Questions

TRX808 · 14 January 2020 at 3:45PM

Hello everyone,

I have been reading this forum for quite a while now to gather as much information as I can, Finally decided to sign up on forum and post few questions (sorry if any of them might sound bit too obvious or silly)

I have a debt of around 10.000£ I did online tool with Stepchange and was recommended DRO

First question: I have: two of this debts are personal loans from "lendable" and "Zopa" can this be included in DRO? (Just not 100% certain as they are p2p lending companies)

Second Question: I have never missed any payment on any of my debts, My partner helps out by covering all the grocery costs and certain bills so can manage and make ends meet every month with my debt. right the question.... Can I apply for DRO and still keep on making payments until it's approved? I understand everyone recommends to stop payments but I just do not want all the nightmare of being chased and called at work etc. So, Can i wait until DRO is approved and creditors are notified of my DRO and then stop payments?

Third question: We are renting from private Landlord, have no car, no savings, etc. Only thing I can think of as an asset over 1000£ is the PC (computer) I have built couple of years ago. so 3 questions here on this really: a) Does this count as an asset I have to declare on application? b) the purchase was actually made as "personal finance" so this is not "hire purchase" right? (because I answered "no" on that question if i have hire purchase loan) c) I am still paying for this personal finance but I do not want to include this on my DRO as there is only few months left and it will be finished. can i leave it out? (it won't get me anywhere near 20k threshold even if I would include it in DRO)

Fourth Question: Let's say my application is approved: then i can actually take over some expenses and actually start to split grocery shopping and clothing for our daughter etc. my question is what is the restrictions? can we still go and visit friends and family abroad? (not a fancy all inclusive holiday or anything)

Again, I'm very sorry if any of this questions sound too obvious, I just want to be sure before I go ahead with whole process.

TRX808 · 14 January 2020 at 4:02PM

And while I have decided to post here I'll also add my expenditure budget

Income

1340£ pet month (wages) no additional income at all

(Though my partner receives child benefit which is around 82£ a month but I do not have to include this as "my" income right?)

Rent: 700 (total rent is 1100 but since my partner only works part time I pay bigger amount)
Council tax: 54 (My half share between me and my partner)
Electricity: 26 (I pay this on my own for whole property)
Gas: 26 (I pay this on my own for whole property)
Water: 15 (My half share between me and my partner)
Groceries: 180 (My half share between me and my partner)
Internet broadband and Mobile: 70
Travel: 80
Meals At work: 40
Clothing: 50
Laundry: 10
Haircut: 15
Emergency fund: 10
hobbies and entertainment: 20

Left: 44£

Thanks again in advance

TRX808 · 14 January 2020 at 9:01PM

Sorry to bombard with so many questions but I just keep on reading forums over and over again, can't concentrate, can't eat properly and can't sleep at night.

Back to 1000£ assets, on my spare time (when debts not used to drive me crazy and demotivate me) I make music. Long story short as I mentioned in above post I have PC, which I bought on personal finance over 2 years ago and at that time it was around 1200£ I also have few instruments which in total (with pc) might be worth around 1500£ so I guess this qualifies as a asset which takes me over 1000£ threshold = I don't really qualify for DRO?

Thanks again and sorry for so many questions

sourcrates · 14 January 2020 at 10:04PM

Assets are classed as cash assets, no one wants your old guitar or pc.
You can have £1000 in cash or other assets, a car worth £1000, must not be a homeowner, and you must meet the £50 limit on your disposable income.

No one comes round to check, don’t overthink things.

TRX808 · 17 January 2020 at 9:00PM

No one?

sourcrates · 17 January 2020 at 10:32PM

TRX808 wrote: »

No one?

Absolutely no one, zilch, nada, niet ein ➰

fatbelly · 18 January 2020 at 4:00PM

£90 doesn't buy much of anyone's time at the Official Receiver.

TRX808 · 20 January 2020 at 11:53AM

Thanks a lot for your replays!
After reading through a lot of threads here you can not imagine (both of you) how much you are helping out people like me with your knowledge! Thank you!!!

Right, I will probably receive DRO application pack within next few days from stepchange.

I still have few questions

Does my budget look okay? (My partner earns 1100 a month) + child benefit around 83£ a month

I just checked credit report and PC I was referring to earlier on personal finance appears on a credit file. Do I have to include this in DRO application? or can I leave it out?

have a great week ahead everyone

fatbelly · 20 January 2020 at 5:30PM

TRX808 wrote: »

Income

1340£ pet month (wages) no additional income at all

(Though my partner receives child benefit which is around 82£ a month but I do not have to include this as "my" income right?)

Rent: 700 (total rent is 1100 but since my partner only works part time I pay bigger amount)
Council tax: 54 (My half share between me and my partner)
Electricity: 26 (I pay this on my own for whole property)
Gas: 26 (I pay this on my own for whole property)
Water: 15 (My half share between me and my partner)
Groceries: 180 (My half share between me and my partner)
Internet broadband and Mobile: 70
Travel: 80
Meals At work: 40
Clothing: 50
Laundry: 10
Haircut: 15
Emergency fund: 10
hobbies and entertainment: 20

Left: 44£

Thanks again in advance

TRX808 wrote: »

Does my budget look okay? (My partner earns 1100 a month) + child benefit around 83£ a month

I just checked credit report and PC I was referring to earlier on personal finance appears on a credit file. Do I have to include this in DRO application? or can I leave it out?

have a great week ahead everyone

You're going to have to be guided by your intermediary at Stepchange. I think they are going to want to produce a joint financial statement and then split it between you proportionately.

You are right that your income is yours; hers is hers. But you are paying a 7/11 share of the rent, half share of council tax, water and groceries and 100% of the electricity and gas. Your proportion of the expenses needs to be the proportion of your incomes.

Commenting on the actual numbers, electricity, gas and water look low to me, groceries high but probably OK, clothing probably too high unless you're in a profession with some sort of dress code. If you have contents insurance and a TV licence you can include those. Id be happy with £20 per month for gifts. I guess you do have people you buy presents for.

What is travel? Do you have any pets?

The finance is a debt. If this is curry's or similar I think it's just regarded as a loan.

TRX808 · 20 January 2020 at 6:08PM

fatbelly wrote: »

You're going to have to be guided by your intermediary at Stepchange. I think they are going to want to produce a joint financial statement and then split it between you proportionately.

You are right that your income is yours; hers is hers. But you are paying a 7/11 share of the rent, half share of council tax, water and groceries and 100% of the electricity and gas. Your proportion of the expenses needs to be the proportion of your incomes.

Commenting on the actual numbers, electricity, gas and water look low to me, groceries high but probably OK, clothing probably too high unless you're in a profession with some sort of dress code. If you have contents insurance and a TV licence you can include those. Id be happy with £20 per month for gifts. I guess you do have people you buy presents for.

What is travel? Do you have any pets?

The finance is a debt. If this is curry's or similar I think it's just regarded as a loan.

Thanks for your replay Fatbelly

Clothing I originally putted 40 but Stepchange online tool has "suggestion" option and when I clicked on that It suggested 59£ (Which I was surprised too, don't remember last time I spent 59£ per month on clothing)

Electricity And Gas I am switching every year to keep it as low as possible (Currently I'm paying direct debt to E-on for both gas and electricity 52£ a month)

water rates come twice a year and If i'm honest I have no idea how they calculate it

Travel = travelling to work on pay as you go by bus 4 times a week and taking daughter to (free) Softplay every sunday to central London

No pets

It wasn't currys but finance was provided by Hitachi finance (I'm just afraid they would not ask for my PC back which I really do need to complete online modules and do researches for work time to time)

So back to budget, I will have to provide my partners payslips?

fatbelly · 20 January 2020 at 7:21PM

TRX808 wrote: »

It wasn't currys but finance was provided by Hitachi finance (I'm just afraid they would not ask for my PC back which I really do need to complete online modules and do researches for work time to time)

So back to budget, I will have to provide my partners payslips?

Still likely to be a loan so it goes into a DRO and the PC stays as yours, within your asset limit.

Partners payslips? That would be up to stepchange whether they need to see these.

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