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  • FIRST POST
    • EffynTimmy
    • By EffynTimmy 9th Aug 18, 9:31 PM
    • 6Posts
    • 0Thanks
    EffynTimmy
    What is my best options ? Can I have a DRO?
    • #1
    • 9th Aug 18, 9:31 PM
    What is my best options ? Can I have a DRO? 9th Aug 18 at 9:31 PM
    [font=courier new]Statement of Affairs and Personal Balance Sheet

    Household Information

    Number of adults in household........... 4
    Number of children in household......... 0
    Number of cars owned.................... 3

    Monthly Income Details

    Monthly income after tax................ 1170
    Partners monthly income after tax....... 0
    Benefits................................ 0
    Other income............................ 0
    Total monthly income.................... 1170


    Monthly Expense Details

    Mortgage................................ 0
    Secured/HP loan repayments.............. 135
    Rent.................................... 100
    Management charge (leasehold property).. 0
    Council tax............................. 0
    Electricity............................. 0
    Gas..................................... 0
    Oil..................................... 0
    Water rates............................. 0
    Telephone (land line)................... 0
    Mobile phone............................ 50
    TV Licence.............................. 0
    Satellite/Cable TV...................... 0
    Internet Services....................... 0
    Groceries etc. ......................... 30
    Clothing................................ 40
    Petrol/diesel........................... 100
    Road tax................................ 13
    Car Insurance........................... 75
    Car maintenance (including MOT)......... 20
    Car parking............................. 10
    Other travel............................ 0
    Childcare/nursery....................... 0
    Other child related expenses............ 0
    Medical (prescriptions, dentist etc).... 14
    Pet insurance/vet bills................. 100
    Buildings insurance..................... 0
    Contents insurance...................... 0
    Life assurance ......................... 0
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 5
    Haircuts................................ 10
    Entertainment........................... 50
    Holiday................................. 0
    Emergency fund.......................... 0
    (Unnamed monthly expense)............... 0
    Total monthly expenses.................. 752



    Assets

    Cash.................................... 0
    House value (Gross)..................... 0
    Shares and bonds........................ 0
    Car(s).................................. 0
    Other assets............................ 0
    Total Assets............................ 0



    Secured & HP Debts

    Description....................Debt......Monthly.. .APR
    Mortgage...................... 0........(0)........0
    Hire Purchase (HP) debt ...... 4792.....(135)......9
    Total secured & HP debts...... 4792......-.........-


    Unsecured Debts
    Description....................Debt......Monthly.. .APR
    Sunny..........................347.88....16.37.... .0
    Quickquid......................156.8.....20....... .0
    118............................1950.8....98....... .0
    Wagedayadvance.................170.......170...... .0
    Virgin active..................200.......45........0
    Vodafone.......................200.......49.75.... .0
    Piggybank......................149.4.....45....... .0
    Myjar..........................300.......20....... .0
    Lending stream.................230.56....20........0
    Paypal.........................803.71....30....... .0
    Tesco creditcard...............3297.52...50........0
    Total unsecured debts..........7806.67...564.12....-



    Monthly Budget Summary

    Total monthly income.................... 1,170
    Expenses (including HP & secured debts). 752
    Available for debt repayments........... 418
    Monthly UNsecured debt repayments....... 564.12
    Amount short for making debt repayments. -146.12


    Personal Balance Sheet Summary
    Total assets (things you own)........... 0
    Total HP & Secured debt................. -4,792
    Total Unsecured debt.................... -7,806.67
    Net Assets.............................. -12,598.67


    I have been dealing with uncontrollable debt for quite a while and have been trying to manage it without success but it is now having a detrimental effect on my mental health and simply there are now more important things in my life than a credit file. So what is my best option to take this strain off my shoulders ?

    Thank you
Page 1
    • sourcrates
    • By sourcrates 9th Aug 18, 9:54 PM
    • 15,562 Posts
    • 14,643 Thanks
    sourcrates
    • #2
    • 9th Aug 18, 9:54 PM
    • #2
    • 9th Aug 18, 9:54 PM
    Hi,

    You cannot have a DRO when you have 3 cars and 410 disposable income unfortunately.

    But your SOA makes no realistic sense at all.

    No council tax, water, electric, food only 30 is ridiculous frankly.

    It needs doing again correctly.
    Last edited by sourcrates; 09-08-2018 at 9:57 PM.
    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/
    • EffynTimmy
    • By EffynTimmy 9th Aug 18, 10:04 PM
    • 6 Posts
    • 0 Thanks
    EffynTimmy
    • #3
    • 9th Aug 18, 10:04 PM
    • #3
    • 9th Aug 18, 10:04 PM
    Hi,

    You cannot have a DRO when you have 3 cars and 410 disposable income unfortunately.

    But your SOA makes no realistic sense at all.

    No council tax, water, electric, food only 30 is ridiculous frankly.

    It needs doing again correctly.
    Originally posted by sourcrates
    Hi

    I live with my parents and 2 of the cars are theirs, the question asked household cars.

    My rent contribution covers the things you mentioned

    Does 'disposable income' not consider my debt repayments ? ? ? I can assure you I have none after these.
    • fatbelly
    • By fatbelly 9th Aug 18, 10:05 PM
    • 12,823 Posts
    • 9,897 Thanks
    fatbelly
    • #4
    • 9th Aug 18, 10:05 PM
    • #4
    • 9th Aug 18, 10:05 PM
    and tell us a bit more about the HP: are you in arrears? When does it complete? how much is the car worth?
    • EffynTimmy
    • By EffynTimmy 9th Aug 18, 10:08 PM
    • 6 Posts
    • 0 Thanks
    EffynTimmy
    • #5
    • 9th Aug 18, 10:08 PM
    • #5
    • 9th Aug 18, 10:08 PM
    and tell us a bit more about the HP: are you in arrears? When does it complete? how much is the car worth?
    Originally posted by fatbelly
    I'm not in arrears with HP, its 5 years and has about 44 months remaining

    The is worth about 3k - am I considered to own this ?
    • venison
    • By venison 9th Aug 18, 10:19 PM
    • 2,439 Posts
    • 2,728 Thanks
    venison
    • #6
    • 9th Aug 18, 10:19 PM
    • #6
    • 9th Aug 18, 10:19 PM
    If the car is worth 3k then no DRO the max allowed is 1k
    https://www.britishlegion.org.uk/remembrance/
    • EffynTimmy
    • By EffynTimmy 9th Aug 18, 10:22 PM
    • 6 Posts
    • 0 Thanks
    EffynTimmy
    • #7
    • 9th Aug 18, 10:22 PM
    • #7
    • 9th Aug 18, 10:22 PM
    If the car is worth 3k then no DRO the max allowed is 1k
    Originally posted by venison
    Thank you, so if it's on HP it is considered mine today just to clarify ?

    What are my other options if this is the case?

    Thanks
    • middleclassbutpoor
    • By middleclassbutpoor 9th Aug 18, 10:29 PM
    • 298 Posts
    • 259 Thanks
    middleclassbutpoor
    • #8
    • 9th Aug 18, 10:29 PM
    • #8
    • 9th Aug 18, 10:29 PM
    Use your spare cash to overpay your debt- you have sufficient income to cover your debts.
    • EffynTimmy
    • By EffynTimmy 9th Aug 18, 10:34 PM
    • 6 Posts
    • 0 Thanks
    EffynTimmy
    • #9
    • 9th Aug 18, 10:34 PM
    • #9
    • 9th Aug 18, 10:34 PM
    Use your spare cash to overpay your debt- you have sufficient income to cover your debts.
    Originally posted by middleclassbutpoor
    No I don't.

    And after checking the budget I provided it seems to show that ? Although it has been pointed out twice i should have plenty of money ? Where is this coming from ? The budget has a line showing a deficit each month
    • sourcrates
    • By sourcrates 9th Aug 18, 10:51 PM
    • 15,562 Posts
    • 14,643 Thanks
    sourcrates
    No I don't.

    And after checking the budget I provided it seems to show that ? Although it has been pointed out twice i should have plenty of money ? Where is this coming from ? The budget has a line showing a deficit each month
    Originally posted by EffynTimmy
    To be eligible for a debt relief order, your debts must be less than 20k,
    You must have less than 50 left at months end, not including debt repayments, a car worth 1k or less, and not be a homeowner.

    You may have to look at a debt management plan, unless you re-jig the budget.
    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/
    • EffynTimmy
    • By EffynTimmy 9th Aug 18, 11:28 PM
    • 6 Posts
    • 0 Thanks
    EffynTimmy
    sourcrates it won!!!8217;t let me quote your post but thanks for your reply I understand now.

    How much realistically could I expect to repay each month under a dmp ? The reason I ask is I!!!8217;ve already told all my creditors of my financial difficulty and the above repayments are based on their reduced repayments, and I have tried budgeting for these and still fall short every time. And it is causing too much emotional stress. For example I am short for tomorrow!!!8217;s repayments due and arrears are about to commence.
    • a_silver_lining
    • By a_silver_lining 10th Aug 18, 7:32 AM
    • 335 Posts
    • 938 Thanks
    a_silver_lining
    Do you have anything you could sell or time for a part time job? My partner took on a part time evening/night Tesco job to cope for a while. It was only two shifts a week, so she was able to still sleep round it, but it brought in an extra amount that made a world of difference.

    I would tackle the three smaller debts you are paying 40~50 on a month as if you clear them you will about break even on your monthly wage.

    Phone and car seem expensive for your salary. How long are you on your phone deal?
    19/12/14: Spent 10 years of savings!!
    ..... to buy my first home.

    2018: 2.7k personal savings --- Family Loan (3.6k paid direct + 3k in saver + 437.70 saver 2) 7037.70/ 10K paid 70.37%
    Extra cash made 2018: 940.42
    • fatbelly
    • By fatbelly 10th Aug 18, 8:05 AM
    • 12,823 Posts
    • 9,897 Thanks
    fatbelly
    This has been an active thread since 10 pm last night!

    A hire purchase car is not an asset - until the final payment is made. So in a DRO, in your case, the car would not become an asset within the 12 month moratorium period.

    A hire purchase agreement not in arrears does not have to be considered as a debt in a DRO. You could include it, and lose the car, or exclude it.

    If you exclude it there is then the question of whether the monthly payments are a legitimate expense, which is why I asked for the car's value. As it is worth over 1000 it would not be a legitimate expense. So the DRO calculation would see your surplus as 418 plus 135 = 553 per month.

    This is why you do not qualify for a DRO as things stand - the surplus limit is 50.

    If you had your own place, paying rent, council tax, utilities, tv licence, insurances, you may well qualify. But as things stand I think a dmp is the way forward. You keep your hp agreement going and distribute your surplus to your creditors.

    Stepchange and payplan are the two main providers of dmps who do not charge a fee.

    Alongside this you should try to get refunds from your payday lenders and there are resources here:

    https://debtcamel.co.uk/payday-loan-refunds/
    • fatbelly
    • By fatbelly 10th Aug 18, 8:12 AM
    • 12,823 Posts
    • 9,897 Thanks
    fatbelly
    Stepchange's explanation of how a dmp works is here

    https://www.stepchange.org/debt-info/debt-management-plan.aspx

    Payplan's is here

    https://www.payplan.com/debt-solutions/debt-management-plans/
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