In a Debt Relief Order (DRO):
- you don’t have to make any monthly payments at all, just one £90 fee at the start;
- your creditors can’t ask you to pay them, take you to court or send bailiffs;
- at the end of a year, the debts in your DRO are wiped out.
If you meet the DRO criteria, it is often your best debt option, unless you expect your situation to improve a lot very soon.
DROs were introduced in 2008. In the first ten years, a quarter of a million DROs were set up. In 2023, DROs are increasing with the costs of living crisis – now more than 2,500 people a month choose a DRO.
This article looks at the important things you need to know about DROs:
- are you are likely to meet the DRO criteria;
- is this is the best option for your financial problems;
- what can happen during a DRO and after it ends.
Contents
Are you eligible for a DRO?
The main criteria
Unlike most of the other debt solutions, you have to be able to meet all of the rules to get a DRO, there isn’t any “wriggle room”. The most important ones are:
- your total debts have to be under £30,000. You can’t decide to leave a debt out to get under this limit;
- you can’t own a house or have a mortgage. This applies even if you only own part of the house, you don’t live in it, the property is in another country, you can’t sell it, or it has negative equity;
- the second-hand value of your assets must be less than £2,000. That doesn’t sound much, but ordinary household objects and clothes etc are not counted at all. There is also an additional allowance for a car, see below. The second-hand value is what you could sell it for, eg on eBay. Few people have a problem with this £2,000 limit;
- you can’t own a car or motorbike worth more than £2,000 (using Parkers value figures). You do not own a car on finance so it doesn’t count towards this £2,000 limit – read Can I have a car on finance in a DRO for details;
- you must have less than £75 a month spare income after paying all your normal bills and expenses. See below for more about this.
- you can’t have had a DRO within the last 6 years.
The £75 “spare income” test
The hardest rule for most people to understand is that you can’t have a DRO if you have “more than £75 a month spare income“:
- this is the amount of money you have left over after paying your bills and other everyday expenses;
- it doesn’t take into account the payments you are currently making to your debts, because those payments stop in a DRO.
The level of spare income will be assessed by the debt advisor who sets up your DRO. You aren’t expected to live on a very tight budget. You can have some money for Xmas, replacing household goods, kids costs etc
I have come across people who have had an IVA payment of over £150 proposed who would have been easily “under £75” on the DRO criteria.
You don’t need to worry that disability benefits such as DLA or PIP will mean that you have too large an income for a DRO. When you have a disability-related benefit, you are allowed to offset that income with a line called “adult disability expenses.”
Some people who have been struggling with debt repayments find the expenditure allowances surprisingly generous. This may be the first time in a long while that you have any money to spend on clothes.
The quote in the picture at the top of this article from a reader sums this up:
“I can finally afford to have food in my cupboards and a warm home.”
Other technical criteria
Apart from these main rules, there are some other reasons that could stop you from getting a DRO. These are much less common – your DRO adviser will check if any are a problem for you.
A few debts can’t be included
A DRO will clear most kinds of debt, not just money you have borrowed such as credit cards, but also council tax and energy arrears, tax debts and benefit overpayments.
Three that cannot be included in a DRO are:
- student debts;
- magistrate’s court fines, including TV license fines (but fixed penalty charges such as parking fines and the London Congestion Charge can be included); and
- debts incurred through fraud.
See this National Debtline factsheet for a complete list of debts that are included and excluded.
The £30,000 maximum debt limit is only for included debts – so if you have a large student loan debt that is ignored in checking if you are under the 30k.
What about my partner?
You won’t be refused a DRO because you live with someone who has assets or a good income.
If you and your partner both have debts and want a DRO then you each have to apply for one – there isn’t any such thing as a joint DRO.
If you have a DRO and your partner doesn’t, then they will become fully responsible for any previously joint debts that you had together. This applies to things like council tax arrears and a joint bank loan.
What happens during the year a DRO takes?
“The DRO year”
In a DRO, your debts are cleared after a “moratorium period” of 12 months.
During this year your creditors are not allowed to ask you to pay the debt or take you to court.
No monthly payments during the DRO year
A DRO is designed for people with little or no spare income, so you don’t have to make any monthly payments.
There is one £90 fee at the start to set up a DRO. Nothing else.
This is a major advantage over an IVA, where you have to make payments for five or six year usually. And over a DMP, which could last a very long time if you can only make low payments.
If something changes during the year
Once a DRO has been set up, you will find the DRO very low-key. No one from the Insolvency Service checks what you spend money on or asks for your bank statements,
But if you have a change of circumstances during the year (pay rise? inherit money?) you have to inform the Insolvency Service.
If you no longer meet the DRO criteria, your DRO may be cancelled. This is pretty rare, because often if your income goes up, your benefits are reduced.
Some detailed articles:
- what happens to my DRO if my pay increases or I get a lump sum of money?
- inheriting money in a DRO
- do not take money out of your pension during the DRO year
- how a DRO affects refund claims – it’s best not to try to reclaim PPI or make affordability claims while you are in a DRO.
A DRO harms your credit score
A DRO is a form of insolvency and it has the same bad effect on your credit rating as bankruptcy or an IVA. See how does insolvency affect my credit record? for details.
The DRO marker stays on your credit record for 6 years.
A DRO won’t affect the credit score of anyone else in your house unless you have joint financial products, such as a joint bank account.
At the end of the DRO year
At the end of the DRO year, there is no check that you still meet the requirements. Your DRO just ends and your debts are written off, see What happens at the end of a DRO?
After the DRO year has ended, you can start to “repair” your credit record. It it only gets better slowly until the DRO and the debts in the DRO drop off your credit record.
Who does a DRO suit?
A DRO is frequently the best option for anyone where all or the majority of their income comes from benefits or who has a low income. This includes:
- pensioners or people with long-term health condition;
- with a family and a low or average wage job, it could be many years before you are free of childcare costs, so again a DRO can be a very good choice for you.
With a short-term money problem, a DRO is unlikely to be your best option. It gets rid of your debts after a year, but it will have a very bad effect on your credit file for six years from when it begins. This downside is well worth it if you have a larger debt problem, but not for a short-term difficulty.
If you qualify for a DRO, it is always a better option than an IVA. In a DRO you don’t have to make any monthly repayments and it is very rare for a DRO to fail, but more than a third of IVAs fail, leaving you back with your debts.
DROs affect your credit record for 6 years in the same way that IVAs and bankruptcy do. This can make it harder or impossible to take out new credit at a reasonable interest rate and harder to get a new private tenancy – but if you have large debt problems you may well have a poor credit record anyway.
It is pretty unusual for a DRO to cause any problems with your employment – talk to your adviser if you are worried about this.
How to set up a DRO
Who to talk to
Citizens Advice sets up more DROs than any other advice agency. They can also help if you have problems with priority debts such as rent arrears.
If you would prefer to do this on the phone, contact National Debtline. Or Business Debtline if you are self-employed.
After the debt adviser decides that a DRO is a suitable option for you and talked you through the details, you will usually be sent an application pack to complete.
Setting up your application
Your adviser does all the necessary checks before submitting your application. This can take two or three months sometimes. Your adviser may set up a Breathing Space for you during this time so you don’t get hassle from creditors.
I’ve looked at some common questions about DRO applications here: DRO application FAQs. But talk to your adviser about anything you are uncertain about or would like confirmed.
This includes:
- anything you have on Hire Purchase or any unusual debts ;
- if you are owed money by someone or expect to get money in the next year, possibly from benefits backdating;
- what happens to bills such as council tax and utilities if you have a partner.
Approving your application
As the adviser makes all the detailed checks, the process of approval is very fast once your application is submitted to the Insolvency Service:
- there is no court hearing;
- no-one visits your house;
- DRO applications are usually approved within 2 working days of being submitted;
- more than 98% of DRO applications are approved.
When your DRO application is approved, you will be sent a letter by the Official Receiver called the Debtor’s Notice. Keep this letter safe even when your DRO has finished – it is a simple proof that a debt has been included in your DRO.
Will debt collectors stop calling after a DRO?
Options when you cant pay bills & debts
FAQs about DRO applications
Ella says
Hi, I have a current account with Barclays, that i never had an overdraft with etc, however I had Barclays partner finance as a debt paid off in my DRO. Will my Barclays current account be affected by the DRO? And will it be closed down?
Sara (Debt Camel) says
A bank may choose to close a current account if it wants. It may well be simpler to plan to switch to a new bank that you don’t owe any money to. the challenger banks such as Starling have a good reputation for nice apps that can help you budget.
gaynor says
Hi Sara,
I am in the process of doing my budget for my creditors and it’s looking likely that a DRO is the option I will be taking.
I would like to know if I am able to renew my phone contract with EE before I go down this route. My 24 month contract ends in 2 months time, so ideally I would like to renew it or upgrade now before I apply for the DRO.
Any advice would be greatly appreciated thank you.
Sara (Debt Camel) says
Your DRO adviser will go through the details with you. But in most cases:
– if you aren’t in arrears with the phone contract, the debt itself isn’t included in your DRO
– your adviser will assess if the payments are necessary for you, in which case the repayments can be counted as part of your expenses.
Can you just switch to a cheap SIM only contract? It may be best to talk to a debt adviser now about a DRO and this.
Alex says
Hello Sara. Me and mypartner has debts, she 12k and me 18K. We are on universal credit and have 2 kids. We thinking about DRO, but we have a car worth 4k but I am registred keeper. Can my partner apply for DRO at least? And second question if she has bank account but no debt in bank,bank will close her account or not?
Sara (Debt Camel) says
Car – probably.
If you have any joint debts here then if she gets a DRO they became your sole debt.
Are you making payments to your debts at the moment?
Check the value of you car every 6 months – at some point it will be under 2k!
Alex says
1)So if we living together but car is registred on myself its counted as only my car. So she can apply for DRO?
2)her bank will close her current account if she will be on DRO or not If she do not owe any money for bank?
3) As I understand she can apply but me not because of car value?
We do not have any joint debts and we are on DMP with stepchange separetly. My debts is mine,her is her. Can you please answer on my questions to fully understand everything in our case. Thanks
Sara (Debt Camel) says
How much are you paying to the DMP each month? How much is she paying?
Alex says
I pay 176 and she pay 129 per months,but we pay that much because limit ourself as much as possible. My annual review will be in september,her in October.We have joint universal credit and we getting 100-300 each month depends on wages. Because I get paid weekly and once in 3 months I have 5 salaries so we get paid from UC 100£ in this months. She work part time and doing 20 hours per week. Youngest doughter 1 year old
Sara (Debt Camel) says
I think she needs to talk to someone about a DRO. I suggest she talks to National Debtline on 0808 808 4000. They can talk about the car – which probably will not be an issue for a DRO for her – but also how much spare income she has a month.
And you too should consider why you are stretching to pay so much and whether your DMP payments should not be reduced.
J says
Hello,
my I’m currently having issues with my CC which i have maxed out and have now gone over the limit twice due to interest charges.
this is 6.5k.
I also have a loan, which admittedly is an ok interest rate, but still have just under 5k to pay in the next 4 years at £122p/m. this would be more managable on its own, but with the CC and about 1.2k on a paypal credit account owned and being constantly in my overdraft of £600 i am struggling. i’ve been looking after my kids for the last 2 years while my wife works.. so this has dragged me into debt quicker.
ive recently started a zero hour contract job for times im not looking after kids, but due to earn about 600 this month which will help with minimum payments but little else.
the bank (HSBC) has let me increase my overdraft on debit card in last month and also my CC was raised by 1k about a year ago.. it probably wasnt in such a mess back then but my income wasnt great..
we recently moved into a house my wife bought. i am not on the mortgage, i have very little in the way of possesions and i dont drive. we have a joint account that we dont really use but it in its overdraft at the moment due to an emergency payment i had to make.. im worried this might affect my wifes credit score? i can only assume mine is beyond repair at the moment anyway.
i cant remember the last time that i was out of my overdraft or out of debt. is a DRO the best option for me?
thanks
Sara (Debt Camel) says
how large is the overdraft on the joint account?
your wife’s house – was this bought with any money from you – eg from a previous house you both owned?
j says
no, I’ve had no financial input in the House whatsoever.
the overdraft limit is 200.. think overdraft is 170.
however just rereading and think I’ll have more than 75 left after outgoings with this job with this month’s wage, but it is zero hour so hard to say that is true every month.
also regarding the £2000 of assets.. i doubt i have this amount but how is it assessed?
S ank says
Hi Sara, I have a question but cannot work out how to post one, just how to click reply? Can you advise how I submit my own question please? Thank you
Sara (Debt Camel) says
Go down to the “Leave a Reply” large box at the bottom of the comments
Sara (Debt Camel) says
A DRO will affect her credit score – the best thing is to get the overdraft cleared, then you get a new account with no overdraft and the old account is closed. Overtime the link between you on the old account will matter less.
I think you should talk to National Debtline on 0808 808 4000 about a DRO – it may not be right for you but it would help if you could rule this in or out as an option.
if a DRO isn’r rught, you can look at payments arrangements or a debt management plan to get the interest stopped.
You may also be able win affordability complaints about some of the debts. See https://debtcamel.co.uk/tag/refunds/ which has articles about these. But these can be slow and should not stop you taking action now to get a debt solution.
J says
Thank you Sara, I will give them a call and find the best option.
We set the joint account up a few years ago but didnt use it in the end.. we have been sticking to our own accounts (for obvious reasons!) but i recently had to use it (or more specifically it’s overdraft) as I had nothing left in my debit or credit cards.
so I think even just closing the account and not setting a new one would be a better option to stop the link between us.
I’m so used to considering my overdraft as ‘my money’ that I guess that RE: the DRO, that once I do get paid this month it will cover my bank accounts overdraft, but I probably wont have over £75 of credit left..
I will call stephange as suggested and work on clearing the joint account overdraft.
thanks, J
Alex says
Thanks Sara for advide. Do bank will close her account if she not owe money to bank after DRO? What do you think?
Sara (Debt Camel) says
i think YOU TWO need to close the account and asap. Regardless of a DRO.
Alex says
Sorry,but how to get wages if current accounts will be closed? If to open new current account what is the difference between old and new?
Sara (Debt Camel) says
You need to get the overdraft cleared and the joint account closed. So you both then use separate bank accounts.
Otherwise any credit problems you have will harm her credit rating. Whether this is a DRO or payment arrangement or missed payments.
L says
Hi. I got my DRO in June 2023.
I have let all of my creditors know that I have my DRO. How long does it take from the DRO being granted, for all my accounts to be closed and no longer show on my credit reports?
Ps, I’m not bothered about them being on my credit record, I’d just like to know how long the accounts take to be closed after the debt is written off with the DRO
Sara (Debt Camel) says
The debts should be marked as defaulted on the date of your DRO. They should be marked as closed after your DRO finishes in a year. The debts will no longer show 6 years after the start date of your DRO.
See https://debtcamel.co.uk/repair-credit-record-dro/ for details.
Stacey says
Hi, im wondering if you can help. I have £7000 of debt all bar one have defaulted. £3000 of this is with a debt collector. I private rent with my partner and don’t have any assets. Would a DRO be better for me as I have recently had a baby so currently not working. My partner works fulltime both have seperate bank accounts and the debts are only in my name.
Hope you can help
Sara (Debt Camel) says
A DRO is a real possibility for you unless you expect your situation to improve significantly in the next year or two. Talk to National Debtline on 0808 808 4000 about the pros and cons.
But if you expect you may need to move and get a new private tenancy, then a DRO on your credit record makes things harder and you may need a guarantor.
If you decide it’s not for you, the other alternative is probably making token payments to all your debts (including the one you are still paying noirmally) until things do improve.
Andrew says
Hi there
Can a debt owed to a current or former employer for overpayment of salary be included in a DRO?
Thanks
Andy
Sara (Debt Camel) says
so far as I know, yes. Talk to National Debtline on 0808 808 4000 about this and your full situation.
Jane says
Hi there.
I’m considering a DRO as I have unsecured debts of about £23k and I can’t afford the repayments and have defaulted on a few of them. My worry though is that a lot of the advice says that DROs are suitable for people on a low income. I take home £2,400 a month but I live in an expensive part of the country (rent is £1650) so I would meet the criteria of less than £75 a month leftover. Would my salary prevent me from being eligible do you think? Even if I meet all of the criteria on the list?
Thanks
Sara (Debt Camel) says
There is no salary check in a DRO – it depends on the amount you have left over after paying bills and essential living costs. Talk to National Debtline on 0808 808 4000 or contact your local Citizens Advice.
Emma says
That’s great. Thank you.
Jane Power says
When you say there is no salary check, do you mean they dont check how much you earn? Do they check your expenditure? ie if i put £50 for food costs, but for a few weeks on the run i some how managed to spend less on food, would that be an issue? Thanks
Sara (Debt Camel) says
Some points.
1) there is no salary test for eligibility in a DRO. Someone on 30k a year may be eligible if they have high expenses eg rent, children. Another person on 20k a year may not be eligible if they re single, no kids, low rent.
2) the adviser setting up your DRO will want to know what you earn. They have to complete income and expenditure details. You will normally be asked for bank statements as a check on what you are spending.
3) BUT you may be spending “too little” on food or clothes or heating before your DRO because you don’t have enough money as you are paying too much too your debts. Explain this to your adviser who will make sure the numbers that go in are sensible numbers for you to live on long term.
4) during a DRO there are no on going checks on your income or what you spend money on. None at all. If you want to live on porridge and baked beans and spend the rest of your food budget on handbags or cut flowers no one will know or care.
5) You do have to tell the Insolvency Service about getting extra income – but often that is swallowed up by prices having gone up.
Judy says
I’m at the final stage of a DRO application. It is being reviewed. For the last six months, I have been helping people (mainly from a religious community) therapeutically voluntarily. I am on benefits. I do it over the Internet.
I want to extend my possibilities to serve by working with groups. The training costs about $9000. It would take exactly one year to complete. Members encourage and wish to support my further training. Some have benefited in life-changing ways.
There has been talk about fundraising since I have no money or means. They have been inspired by doing so by social media like GoFundMe! How about the gift of education? What if they raised enough for a deposit and I pay monthly? What if they paid monthly for the course or training? What if they technically took me on as an official volunteer (currently I do it independently), and offered me the training? Would any of these be against my pending DRO? Is there anything you can suggest that might make it possible for me to take the opportunity to advance in preparation for a better future while under the DRO?
Sara (Debt Camel) says
Personally I would be very suspicious of any training like this that you have to pay for or raise money for.
You need to talk to your DRO adviser about what you would have to declare to the Official Receiver in a DRO. This may be best left until afterwards.
Lily says
Hi.
I have been asked to step up into an acting position for my job. For a maximum of 3 months. It is certain that I will not be needed in post for longer than this.
With the step up it means my wages will go up.
Do I need to declare this to the insolvency agency? As it is only for a short term?
Thanjs
Sara (Debt Camel) says
I suggest you talk to the adviser that set up your DRO.
If you get Any benefits, remember they will be reduced for this period.
Chris says
I’m mulling over the possibility of a DRO. I currently have a joint DMP for debts totalling 22k which won’t be fully paid off until 2029. I’ve had several missed payments and I’m struggling this month too. I have a few concerns though:
1: One of my debts is with Amigo and I’m worried about them going after my guarantor. I’m still waiting for a decision on an affordability complaint so this would no longer be a problem if my complaint is upheld (right?). I understand they’re going into liquidation soon so is this something I should be worried about?
2: My partner and I rent privately and we have 2 children. We recently had to move due to our previous landlord selling the house and it was difficult enough finding somewhere to move to. If we found ourselves having to move again within the next 6 years, would the DRO make this impossible or just a lot more difficult?
3: There’s no nice way to say this but my partner’s grandfather is in the later stage of his life and if anything were to happen she would receive an inheritance and have 25% ownership of his house. Not saying anything will happen in the next year but still needs to be considered.
4: Are priority debts included if you’re already paying arrears via an arrangement (previous year’s council tax bill, for example)? How about mobile phone contracts? My partner and I are both currently in payment plans to pay off some arrears alongside our usual monthly amount.
Sara (Debt Camel) says
I currently have a joint DMP for debts totalling 22k which won’t be fully paid off until 2029. I’ve had several missed payments and I’m struggling this month too.
Then unless you immediately go for a DRO, I think you should ask for your DMP payment to be reduced.
I am not sure if you are saying that you would both go for a DRO or just you. If just you, you need to work out what debts your partner would be left paying in a DMP – their debts plus joint debts.
1. if your claim is upheld, then your guarantor should be released. (We haven’t actually seen any decisions on these cases with an open loan yet, so until we do I can’t be 100% sure about this. But say 98% sure.) Liquidation is irrelevant. If there is a remaining balance after your loan has been upheld OR after it has been rejected, the balance will be sold to a debt collector.
2. A DRO makes it harder to rent privately but not totally impossible. You may have no options that make it easy to rent privately.
3. If your partner inherits anything, this will have no affect at all on a DRO that you are in. (It would affect a DRO that they are in – their DRO would be very likely to be cancelled.)
4. priority debts are included whether or not you have an arrangement to repay. As are mobile contracts with arrears. But last years council tax bill would have been a joint liability with your partner. So unless they also have a DRO, they will still owe the debt.
I think you should talk through your situation with a debt adviser. Who is your DMP with?
Caroline says
Hi, I’m hoping to get a DRO but I have a ‘debt’ for a very expensive coaching programme I signed up for in the US. I signed a contract with this coach and have since realised I was groomed/manipulated into signing up for it, the programme has been harmful to me- and I’ve left it. I have a large outstanding amount of money I haven’t paid (they let me do the programme and delay starting the payment plan – all dodgy I know now). This debt takes me over the DRO limit.
Ive emailed them several times to ask if they will release me from the contract or pursue me for payment. I haven’t received any replies to these emails and they haven’t chased me for any missed payments for 2 months.
my debt management company say unless I get confirmation they have released me from the contract they can’t put me forward for a DRO. It feels like this coach is ignoring my emails deliberately as a power thing, and I’m not sure she’s going to give me a response.
I’m feeling really frustrated that I may have to go into bankruptcy rather than a DRO because this coach won’t respond to me. I’d also like to check if I’ve emailed multiple times with no response and not been chased for payment this could be sufficient to discount the debt for the DRO. I understand what my debt management company are saying but would like a second opinion I guess. Do you have any further suggestions in this situation please?
Thanks for your amazing website it’s incredibly helpful!
Sara (Debt Camel) says
How much is this American debt?
How much are you over the 30k limit with it?
Lucy says
Hi Sara,
I’m considering a DRO as I currently have debts totaling at around £11,500 and struggling to make the minimum payments.
I am self-employed (sole trader) and work part-time hours due to having a young child. My monthly income is minimal because of this and we claim UC to ‘top up’ my income and cover childcare cost/bills. My husband works full time and covers the rest of our bills. However, we have a joint bank account, so what I wanted to ask was:
1) – How would I break down or show how much money I am leftover with after our bills are covered, if we only use one bank account and my husband’s wages covers 90% of this?
2) – As we have a joint bank account and have done for several years, is it best to remove my husband from the joint account and set up his own individual account, to prevent him from being negatively impacted by my DRO? We have no joint debts. If so, do you have to wait a certain period of time before applying for a DRO once he has been removed from the joint account to prevent him from being affected?
3) – The car I drive daily is registered in my husband’s name and I am just a named driver, as he purchased this via a bank loan. It currently values at around £6500. If I did decide to go down the DRO route, would I have to include this as an asset if it is registered in my husband’s name?
Thank you :)
Sara (Debt Camel) says
1) the adviser who sets up your DRO will sort all this out. I suggest you talk to Business Debtline about a DRO as they specialise in the self employed – see https://www.businessdebtline.org/
2) yes get his named removed now. Even if you don’t go for a DRO, you will probably need payments arrangements so it’s best to not have any joint accounts. No need to delay starting to get a DRO – that isn’t an instant process, it often takes a couple of months.
3) No, you don’t own it, it isn’t your asset.
Mandy says
Hi Sara,
I stumbled across your website a few weeks ago, I’ve been an avid reader and follower. I was hopin you can give me some advice on an issue that isn’t me, but my niece and I’m not sure she is getting the best advice.
She has recently received a CCJ from a previous landlord for what he claimed to be damage to the property she vacated. The CCJ was against her and her ex-husband (they left the property when they split) She wasn’t on the tenancy, her husband was.
The CCJ was made after neither of them defended it and it is approimately £5.5k in total.
Last week Bailiffs turned up but she was out. She called National Debt Helpline and since then I believe she was advised to speak to Citizens Advice. They have told her to enter into an IVA, having read on here about the pitfalls of entering into one, I am not sure this is the right course of action for her. She has no assets of any sort, her car is worth £1,500 maximum and her property is rented, she has two children of 9 and 12 (not her ex-husbands) she is currently on benefits, would a DRO be possible/more applicable in her case?
My initial thought was to get her to call StepChange? Any advice you could give would be massively appreciated, she is understandebly in an absolute state. She has no other debt at all, just this CCJ.
Thanks in advance for any advice you can offer.
Sara (Debt Camel) says
No that doesn’t sound right at all. An IVA sounds entirely unsuitable…
“National Debt Helpline” sounds a lot like the well respected charity National Debtline – but it is the sort of name often used by commercial firms trying to pretend to be National Debtline whose main aim is to sell people on IVAs.
Or she may have spoken to the real National Debtline who may have signposted her to Citizens Advice either for help with the bailiffs or for a DRO or both.
There are also fake firms trying to pretend to be Citizens Advice…
I suggest she calls the Citizens Advice debt helpline: 0800 240 4420. She should say what has happened and that a friend has said that an IVA is unsuitable and she may need a DRO instead.
let me know what happens?
Mandy says
Thanks Sara
That was my thought exactly, I’m going to call her this evening, I just wanted someone with real knowledge to confirm my thoughts. I’ll update you on the outcome.
Lily says
Hi. I obtained a DRO on 30th June 2023.
I have been made aware of an essential living fund, which is available in my area, which can be applied for to help with the cost of groceries, energy bills and other things such as household furniture.
The money isn’t paid directly to a bank account, and is put into a pre paid card. If successful, applicants must show receipts for proof they have used the funding appropriately. If I was to access support from this fund, would it impact my eligibility for my DRO?
Thanks
Sara (Debt Camel) says
How much money could this be? It would be a one off, or regular each month?
Lily says
It would be a one off, and no more than £400 for the groceries. The furniture is gifted
Sara (Debt Camel) says
I don’t think that will be an issue. Talk to the adviser who set up your DRO to be sure.
Jane says
I was about to get help with a DRO and my circumstances have changed. Ive read a tight budget isnt expected on a DRO, but what would be a reasonable amount in their eyes for food and clothing for one person? I havent bought clothes for years, and i often live on toast. Ive got a new job, I will have to eat properly now i will be working full time and I will need to buy new clothes, so im panicking!
One of my debts is with my bank, would it be better to open a new account now for my wages or would that be frozen or closed too? How do they expect you to get your wages if accounts are closed down?
Sorry, apart from the obvious things, what can be included in the budget, ie can my prescription charges be included, I dont really socialise but is there any wriggle room for “leisure”. I dont want to say not to every works “do” !!
Thank you
Sara (Debt Camel) says
prescription charges – definitely. Also things like haircuts, dentists. a reasonable amount for gifts, and yes leisure.
I suggest you have a look at this budget sheet from National Debtline which may prompt you for some other lines you should include https://tools.nationaldebtline.org/yourbudget/ and then talk to National Debtline on 0808 808 4000. they will say if they think any amounts look too high. And talk you through what to do about a bank account.