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  • FIRST POST
    • jonjon123
    • By jonjon123 11th Mar 18, 6:45 PM
    • 44Posts
    • 1Thanks
    jonjon123
    DRO and HP finance
    • #1
    • 11th Mar 18, 6:45 PM
    DRO and HP finance 11th Mar 18 at 6:45 PM
    Hi can anyone please advise what happens if you apply for a DRO and you have up to date outstanding finance through a HP agreement on PCP?

    Do you lose your car?

    Secondly I'm not too sure what my exact debt level is, but if it were to be above £20k, I'm right in saying you cannot apply for a DRO, is that right?

    What options do you therefore have if you owe more than 20K, apart from bankruptcy obviously, which I don't really think is worth while for the sake of maybe 25k.

    All help greatly appreciated.
Page 1
    • sourcrates
    • By sourcrates 11th Mar 18, 6:57 PM
    • 13,976 Posts
    • 13,250 Thanks
    sourcrates
    • #2
    • 11th Mar 18, 6:57 PM
    • #2
    • 11th Mar 18, 6:57 PM
    Hi,

    You cannot have a car worth over £1000, or any assets worth over £1000 in a DRO.

    The upper debt limit is 20k.

    Other options are IVA (individual voluntary arrangement) or DMP (debt management plan).

    Post an SOA to see which would be best for you.

    http://www.stoozing.com/calculator/soa.php
    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/
    • jonjon123
    • By jonjon123 11th Mar 18, 7:15 PM
    • 44 Posts
    • 1 Thanks
    jonjon123
    • #3
    • 11th Mar 18, 7:15 PM
    • #3
    • 11th Mar 18, 7:15 PM
    Hi,

    You cannot have a car worth over £1000, or any assets worth over £1000 in a DRO.

    The upper debt limit is 20k.

    Other options are IVA (individual voluntary arrangement) or DMP (debt management plan).

    Post an SOA to see which would be best for you.

    http://www.stoozing.com/calculator/soa.php
    Originally posted by sourcrates
    Just tried uploading it and spent half hour doing it for it to be deleted, great.

    To cut a long story short because im not doing it all again, I earn about 24k a year and after income/living expenses and priority bills, paying off my HP, Loans and Credit cards I am left with about £40 a month disposable income.

    Obviously I would like a quick way out and paying these back over 7 years or longer and taking out IVAs or DMP's will also drag it out also, so because the debt level is over 20k is my only option, literally bankruptcy?


    Any suggestions?
    Last edited by jonjon123; 11-03-2018 at 7:51 PM.
    • sourcrates
    • By sourcrates 11th Mar 18, 8:40 PM
    • 13,976 Posts
    • 13,250 Thanks
    sourcrates
    • #4
    • 11th Mar 18, 8:40 PM
    • #4
    • 11th Mar 18, 8:40 PM
    Debt repayments are not included in your income and expenditure.

    You only include essential payments, no debt repayments, so your disposable income is likely to be a few hundred, so a DRO is out as well.

    If you do not take the option of an IVA or DMP then Bankruptcy is all that is left.
    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/
    • jonjon123
    • By jonjon123 11th Mar 18, 8:46 PM
    • 44 Posts
    • 1 Thanks
    jonjon123
    • #5
    • 11th Mar 18, 8:46 PM
    • #5
    • 11th Mar 18, 8:46 PM
    Debt repayments are not included in your income and expenditure.

    You only include essential payments, no debt repayments, so your disposable income is likely to be a few hundred, so a DRO is out as well.

    If you do not take the option of an IVA or DMP then Bankruptcy is all that is left.
    Originally posted by sourcrates
    Really?

    So even if you pay out loans, credit cards and HP finance, none of them count?

    I assume you are just talking about priority bills then?
    • sourcrates
    • By sourcrates 11th Mar 18, 9:04 PM
    • 13,976 Posts
    • 13,250 Thanks
    sourcrates
    • #6
    • 11th Mar 18, 9:04 PM
    • #6
    • 11th Mar 18, 9:04 PM
    Really?

    So even if you pay out loans, credit cards and HP finance, none of them count?

    I assume you are just talking about priority bills then?
    Originally posted by jonjon123
    In a DRO only your everyday living expenses and essential payments are included in your budget.

    A DRO is designed for people who simply cannot afford to service their debts at all, ie, they do not have enough disposable income.

    Thatís why the disposable income threshold stands at £50.

    If you have disposable income, which it appears you may have, then you can afford to pay something towards your debts.
    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/
    • jonjon123
    • By jonjon123 11th Mar 18, 9:18 PM
    • 44 Posts
    • 1 Thanks
    jonjon123
    • #7
    • 11th Mar 18, 9:18 PM
    • #7
    • 11th Mar 18, 9:18 PM
    In a DRO only your everyday living expenses and essential payments are included in your budget.

    A DRO is designed for people who simply cannot afford to service their debts at all, ie, they do not have enough disposable income.

    Thatís why the disposable income threshold stands at £50.

    If you have disposable income, which it appears you may have, then you can afford to pay something towards your debts.
    Originally posted by sourcrates
    I see. Thanks for that.
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