A Debt Relief Order (DRO) is often the best debt solution if you have under £30,000 of debt (this is increasing to £50,000 in June 2024), you are renting and you have hardly any spare money to repay your debts. You don’t have to make any payments in a DRO and, after a year, your debts are wiped out.
See What is a DRO? which looks at the eligibility criteria and how to apply for an overview.
Here are some common questions I hear about DRO applications.
Contents
Questions about eligibility and suitability
The DRO criteria are fixed numbers, not rough guidelines, and you will have to meet them all. Your DRO Adviser checks this and won’t submit your application if you don’t.
I’m self-employed, I make little money but it’s erratic
You can have a DRO if you are self-employed. Business Debtline are good people to talk to about your situation as a variable income can make it harder to judge.
My bank account often has a lot more than £75 in it so will the Insolvency Service reject a DRO?
This isn’t a problem. Your DRO adviser will do a proper check on your income and expenditure and if they say you meet the “under £75 spare income a month” test, then you are going to be fine.
I have applied for PIP but don’t know if I will get it
Tell your DRO adviser. If your only income is from benefits, this probably won’t matter. You have probably been spending less on some things than you should and the PIP will let you cover a lot more of the costs associated with the disability.
Even if you have other income it may be OK – although your income may be going up, your advisor can include extra disability expenses.
If you get a backdated amount when your PIP application is accepted, this won’t be a problem for your DRO. Backdated “premium” amounts that are added to other benefits when you get PIP can be a problem – talk to your DRO adviser about these.
Does it matter if I went bankrupt 4 years ago?
No. The DRO Unit of the Insolvency Service will only refuse your application because of previous insolvencies if you:
- are currently an undischarged bankrupt; or
- you are currently in an IVA; or
- you have had a DRO in the last six years.
I’m staying with friends but when I get a place to rent, I will have no money
Applying for a DRO at the moment probably isn’t a good idea!
I suggest you save up the money for a deposit and move out. Then you will know what your expenses are and what your surplus income is. Also, it can be simpler to find somewhere to rent without a DRO (or bankruptcy or an IVA) on your credit record.
You may well be right that you will be broke when you have moved, but getting yourself settled in a new home is your top priority. Your debts – and any DRO – can wait.
I’m going to retire in about 6 months, what about my lump sum from my pension?
If you get a large lump sum from your pension whilst you are in the middle of your DRO year, your DRO will probably be cancelled.
Unless you can postpone taking your pension until your DRO is completed, a DRO probably isn’t a good option for you. Talk to your DRO Adviser about this and about what your other alternatives are.
My maternity leave is ending in a few months – will this be a problem?
Your income will increase, but you may also get large childcare expenses, cost of travelling to work etc and your benefits may reduce, so you may still meet the DRO criteria. You need to talk this through with your DRO Adviser.
If returning to work will be a problem for your DRO, then you may have other alternatives eg part time work for a few months until your DRO ends
Questions about income, assets and expenses
I have a car on finance – does this count as an asset?
No – you don’t own it.
But read Cars on finance and DROs which looks at some complications with cars on finance and DROs. These may not be a problem for you, but you need to discuss this with your DRO adviser.
I don’t have any bank statements – does this matter?
Your DRO Adviser will want some proof of your income – if they ask for bank statements and you don’t have any, it’s usually easy to get one. Or they may be happy to accept wage slips and any benefits letters.
The Insolvency Service doesn’t need to see your bank statements.
Are student loans treated as income when applying for a DRO?
Student maintenance loans and grants count as income for a DRO. The loan you get for tuition fees is ignored.
If you are going to uni as a mature student, a DRO may well be a sensible option for you. But if you will finish your degree and get a well-paid job within the DRO year, a DRO may not be a good idea for you – talk to your DRO Adviser about this.
(As you expect to earn more in the future, students should generally avoid an IVA where your payments would increase a lot.)
Why do I have to say what my partner earns?
A DRO won’t be refused because your partner earns a lot – they aren’t going to be told to pay your debts.
You are being asked about their income so that it can be checked that the rent and bills are being fairly divided between you. If you earn the same, a 50/50 split would be normal.
We are both going to need a DRO – how do we divide up the expenses?
Expenses are usually divided in the same ratio as your income. So if you both have about the same income, you spilt the rent, council tax, and all joint household bills 50:50. If your income is twice what your partner’s is, you would be expected to pay 2/3 of the bills and your partner 1/3.
But you don’t have to sort these numbers out, get the same debt adviser to do both DROs and they will do all this.
My parents have been giving me money to help with my debts
Those are gifts and they could stop at any time. They don’t need to be reported on your DRO application as income because they aren’t income.
Is my car worth what I can sell it for?
You can get a valuation using Parker’s Guide, This gives a range of values for your car – talk to your DRO adviser who may agree that the bottom end of the range is likely to be acceptable.
I have a car registered in my name for insurance, but it’s owned by my mother – what will happen?
Tell your DRO Adviser but this should be fine. What matters is who owns the car, not whose name is on the insurance or the V5 registration. You will probably need to provide some proof about who bought the car.
I’m unemployed and I pay my mum £30 a week for rent and board – is this allowed?
That isn’t going to be a problem – it would cost you far more to rent a room privately somewhere else!
I’ve made an affordabilty complaint – should I delay until this is sorted?
Possibly but unless the refund will be large, it may be best to get on with the DRO now. Read “If I get a refund, what will happen to a DRO?” which looks at this in detail.
Questions about debts
Why do I have to get my credit reports?
You are being asked for a credit report so that your DRO Adviser can be sure all your debts are being listed. This is for your own protection – any debts which are not listed on your DRO application are not included in it and so you will still have to pay them.
What details are needed about the debts?
Who the current creditor is, the amount and the reference number. If there are several reference numbers – the original credit card number, a debt collector account number and another number on your Experian record say – list them all to be on the safe side!
Do I have to include my broadband/mobile/car insurance contract which still has over a year to run?
These are “service contracts” – you aren’t repaying a loan, just paying for a service, eg supply of broadband, throughout the year. You don’t generally have to include service contracts unless you are behind with the payments – in that case they do have to be included.
But you need to check with the adviser setting up your DRO that the payments will be allowable as an expenditure.
With a mobile contract, it may be set up as part loan and part service contract. In this case is it usually possible to include the contract in your DRO but keep the handset and then get a PAYG sim-only contract. Talk to your debt adviser about this.
I stopped paying most debts ages ago but still pay two catalogues – is this a problem?
Technically this is called “preference” – paying some creditors and not others. That may sound alarming, but it’s pretty common. Although the DRO Unit can refuse a DRO application if this has happened, they assess how serious the preference was. Most people don’t have a problem:
- if the preference was a while ago and before you took advice about a DRO, it matters a lot less – so from this point you must treat all your debts equally. For most people this means not paying anything to any of them. BUT don’t stop paying any priority debts without talking to your DRO Advisor first!
- if you had been paying a family member or a friend and not paying commercial debts, that is seen as more serious;
- paying the normal monthly amount to a mobile contract does not count as preference.
Talk to your DRO Adviser – they may not be concerned or they may suggest putting off a DRO application for a few months so the preference is further in the past. But if you have problems with bailiffs or other urgent reasons it may still be good to apply now.
I used my credit card last month – is this a problem?
This is another common situation. It does depend on why you used credit – paying for an essential car repair is much less of an issue than taking the family to Disneyland!
A DRO application won’t be refused because of this. It it is possible but rare that some extra restrictions may be imposed if the DRO Unit thinks you have behaved recklessly.
Talk to your DRO Adviser. Some DRO Advisers don’t like putting in an application unless you haven’t used any credit for several months, but if the amount was small, or for an urgent need, you may want to carry on with it.
Once you have decided to apply for a DRO you should not use any more credit.
I have a car on HP – is this debt included
Normally all debts have tio be included in a DRO but this is one of the very few situations where you have a choice. See DROs – what if you have a car on HP? for details and talk to your DRO adviser about this as it can get complicated.
I am repaying a Universal Credit advance – can this be included?
Yes. UC Advances are debts that should be included in a DRO. When the DRO is approved, any deductions from your current benefits for these should stop.
This also applies to benefit and tax credit overpayments. But it does not apply to Social Fund loans – these cannot be included in a DRO.
I’m confused about rent arrears
Rent arrears are a debt that has to be included in your DRO. But if you are still living there, you are allowed to carry on repaying the arrears and if you don’t, the landlord or Housing Association/Council may try to evict you.
Talk to your DRO Adviser about this – it’s important you get an affordable arrangement in place to repay your rent arrears in place.
This is one case where going to your local CAB for help with a DRO is good as they may know what policies local Housing Associations have.
I have cleared rent arrears and not paid other debts
Normally you have to “treat your creditors the same”. But this doesn’t apply to any priority debts such as rent arrears, council tax arrears, energy bills etc. Paying these a lot more than debts like credit cards does not count as a “preference” and won’t stop you getting a DRO.
Questions about the application
Who can help me with this?
It doesn’t matter who you go through, the DRO you end up with will be the same. StepChange is no longer setting up DROs, so I suggest:
- Citizens Advice – they set up more DROs than any other advice agency. They can also help with benefit advice and talking to your creditors if you have urgent problems with energy bills, bailiffs etc
- if you would prefer to talk to an adviser on the phone, call National Debtline on 0808 808 4000.
When my local Citizens Advice has checked my DRO do I then apply to the Insolvency Service?
No. Only approved intermediaries can submit an application for a DRO, you can’t do this.
Your DRO Adviser gets the information to go on the application from you and your credit records. You then have to sign to authorise them to send in your application.
How long does it take to approve a DRO?
It’s quick! Your DRO Adviser will usually get an email a couple of working days after submitting the application to say it has been approved.
You are sent a letter confirming this, called the Debtor’s Notice. It is posted the same day your DRO Adviser is told, so you usually get it the day after your DRO adviser knows.
Keep this letter safe, even when your DRO has finished, because it proves what debts are included in your DRO.
The Insolvency Register is also updated, showing your DRO.
How many DROs are rejected?
Only a tiny number of DRO applications are rejected – less than one in three hundred applications.
If your adviser has agreed to put your application forward, it is because they have already made all the checks and they don’t expect any problems.
How long do creditors have to object?
Creditors don’t have to agree to your DRO, there is no set time at the start for them to approve or object.
A creditor can only object if they think you didn’t meet one of the DRO criteria. This doesn’t happen very often, and then the DRO Unit have to consider if the objection is accurate – most of them aren’t. It is VERY rare for there to be a problem with this – you don’t need to worry about it.
I am just about to apply and I have been told one of my debts has been sold
Tell your DRO Adviser – they may want to change the application. This isn’t a problem, it’s just a bit of a hassle.
I’m just about to apply, literally days, and I have had a letter from a bailiff about council tax
From this point, it should be very quick, so you could simply ignore this letter, but tell your DRO Adviser and make sure your application has been submitted.
If a bailiff calls, do not open the door under any circumstances, not even to explain about your DRO. See Do I have to let a bailiff in?
Other questions
Do I need a new bank account?
If you have an overdraft, it will be one of the debts in your DRO – you can’t leave it out. You will need to get a new bank account, but there is now a good range of basic bank accounts to choose from, see Getting a basic bank account.
If you don’t have an overdraft, you will usually be able to keep your current account. NatWest and Halifax sometimes make you downgrade to a basic bank account from a standard current account.
Your bank isn’t told you have started a DRO. However some banks check the Insolvency Register daily and so will know that you have had a DRO even though they have not specifically been told.
Who is told I have a DRO?
Your creditors are told, your name is included in the Insolvency Register (which lists people with bankruptcy, IVAs and DROs) and a marker will be added to your credit record.
There is a procedure to not include your address on the Insolvency Register if you have had domestic violence or similar issues – talk to your DRO Adviser if you are worried about this.
Your partner isn’t told – but it is always a good idea to tell them yourself!
Your employer isn’t told unless you owe the employer money or unless you have an attachment of earnings in place (which will stop) in which case your employer is contacted.
Your landlord is only told if you have rent arrears.
Will a DRO affect my partner’s credit record?
Only if you have a joint bank account or loan with them.
Do I have to send in monthly statements?
No! No one checks up on your income and expenditure during the DRO year. Or at the end of the year.
Can I move abroad?
Yes – tell the DRO Unit your new address and you will still have to inform them of changes to your income and expenses.
No such thing as a foolish question
I hope I have covered many questions here.
But tell your DRO Adviser about any concerns or questions that you have. Not just about your current situation and the application process, but about what may happen in the next year. It’s much better to have this discussion before an application goes in.
Will more pay or a windfall affect a DRO?
Do debt collectors still phone after a DRO?
DROs and your credit rating
Jennine says
Yes I have 90 pound put aside . Ok I will phone them tomm . I should of thought something was not right but thought I give more time now I’m quite scared 😟.. thank you for ur help .
And yes I stopped paying the dmp on the day step change said I can go in for a dro . So from the 2nd of June my breathing space end
Sara (Debt Camel) says
I understand why this is uncomfortable, but there should be much of a problem in practice for you. Good luck!
Jennine says
Thanks hope not . Thanks again u been brilliant nice to have someone to talk about it to
Terry says
Hi Sara
If one has made a material full & final settlement to a commercial creditor within 2 years of applying for a DRO, when in a DMP, but have continued to make agreed DMP payments to the other creditors would a DRO be granted?
Example: total owed and included in DMP before full & final settlement £25,000
Payment of £3,000 made to settle debt of £6,000
Apply for DRO a year after the full & final settlement payment made with a potential total debt write off of £18,000. Surplus income is below £75/mth & assets below £2,000 at time of DRO application.
Sara (Debt Camel) says
I think this may probably be OK – talk to National Debtline on 0808 808 4000.
John says
Hi Sara ,
I want to apply for DRO but still waiting for my Work Capability Assessment outcome ,if i get support group then they will send me back dated money which covers almost two years and could be £7000 or more will it could be cause of DRO rejection ??
I am not working getting PIP and UC living with friends cant afford private renting . Help me out please ,
Thanks
John
Sara (Debt Camel) says
How large are your debts at the moment?
Can you carry on living with friends?
Natasha says
Hi sorry to bother you, I am looking at what I can do to fix my debts. I have been scraping by managing to make the minimum payments so I am not currently in arrears but that will change soon as I simply can’t keep up with the shortfall anymore. I have a motability vehicle so the money comes out directly from pip without me seeing it, do I declare this as income and then put it down as transport costs?
Also due to surgery I am meant to take supplements for life the NHS doesn’t cover these (despite the NHS telling me to take them) so I need to pay for them. However my money has been too tight for me to afford them, do you know if I can still list this cost down or do I need to exclude it as it won’t show in my bank records? There are a couple other items like this and expenses I pay in cash should I try to pay electronically or could I get reciepts and use those as proof if needed?
I live in my overdraft, do I put down the amount it is at the end of the month? What should I do about my pension and benefit money should I get a new bank account and pay it into there? I’m worried that if I get a dro the account will be frozen at the wrong moment and I’ll lose a months pension/benefits to the overdraft.
Sorry for all the questions! Any help would be gratefully received.
Sara (Debt Camel) says
do you have any income that isn’t state pension or benefits?
How large are your total debts?
Are any of these priority debts (council tax, rent, energy bills etc), and how large is your overdraft?
Natasha says
Hi thank you, It’s actually an occupational pension – I was ill health retired about six years ago I’m in my late 30s, I get a small esa contribution based amount a little over £20 a week and then my pip.
My total debts are around £17,500
I owe £197 in water but I’m hoping to be able to pay that this month otherwise I don’t have any priority debts. The overdraft limit is £1270 which is where it is at the end of each month.
Sara (Debt Camel) says
Water is not a priority debt. If you can have a DRO it is cleared like any other debt, so I suggest you don’t pay that this month before seeing if you qualify for a DRO, which you may well do but you need an adviser to go through your income and expenses with you.
I suggest you talk to National Debtline on 0808 808 4000 about a DRO.
Yes you put the PIP income in and then the motability payments as an expense – this is “allowable” so it effectively removes that income from consideration.
Explain about your supplements. You can produce details of what you are recommended to take and the cost I presume.
Yes put down the Overdraft as what it is at the end of the month. Accounts aren’t frozen by the Official Receiver in a DRO but many banks will close your account, so it’s good to think where to open a new one. See https://debtcamel.co.uk/bank-accounts-after-bankruptcy/. Your DRO adviser can talk to you about this.
Natasha says
Thank you so much for your help
Last question I promise, Up until two years ago I lived with my parents if I did get a dro or a dmp would it have an impact on them at all/would they find out? We have the same last name and with the address being so recent I don’t know if it would cause them problems. Probably seems like a silly question I’m just not sure how it works and I’m ashamed of the situation I am in
Sara (Debt Camel) says
They won’t find out unless you are still getting post sent there and they open it.
It won’t have any impact on them even if you were still living there. Houses aren’t blacklisted – all credit reporting is by person.
PS No reason to be ashamed. I bet your parents would be sympathetic, not critical. You aren’t well!
Lee says
I have 2 bank accounts and 3 credit cards with combined debts totalling around £12,000. I’ve recently lost all my money through my part time online business which I have been running for 2 years. I am officially broke as everything has gone downhill, I’m expecting to go into arrears + interests really soon and default notices shortly thereafter.
I’ve always paid my credit cards in full. I’m a student abroad, (not currently in the UK). I have 2 years remaining to complete my degree. I’m on a student scholarship program so my tuition is fully covered and my grandmother helps with some of my living costs from her pension. I can apply for breathing space but since I’m a full time student I don’t see my situation changing. My grandmother is not happy at all with this and from the looks of it I’m on my own with these debts. I barely will have any surplus income to pay these debts, I’m considering sending in a DRO application. Your professional advice will greatly be appreciated.
Sara (Debt Camel) says
When did you last live in the UK? was your business in the UK?
who told you you could have a breathing space?
what will be your financial position when your degree ends and you get a job – will this be in the UK?
Lee says
Well I visit the UK during semester breaks because my family lives there. My last visit was in February this year.
Regarding my business, it involves stock trading and assets. The broker company is based in the UK and I registered with them in the UK, I can be anywhere in the world to trade using their platform.
I can get a payment deferral from HSBC but I’m unsure about Barclays but if I ask I think they too can help with some breathing space.
In 2 years I see myself working full time at the NHS back in the UK and can possibly pay off the £12,000 I owe in the first or at latest … the second year of work. But time is not in my hands as the maximum payment deferral the bank offered was 6 months.
I’m inclined to go for the DRO and stain my credit file for 6 years so that when I finish my studies I can use the remaining 4 years to stack up for a home deposit on a mortgage with a clean slate…But not sure if this would be a good strategy.
Your swift response was greatly appreciated.
Sara (Debt Camel) says
I may be reading too much between the lines here, but have you been borrowing on credit cards to invest? Possibly in crypto?
(Normally the cause of debt isn’t particularly relevant, but in this case it may be. Sorry if I am well wide of the mark.)
Lee says
Yes, exactly that! I’ve been using my credit cards to trade stocks/commodities and sometimes into crypto for a few years and just recently the market has plummeted. I’ve lost £10,000. My credit score is really good at the moment but not for long since my next statement is due really soon and I have nothing to pay it off with.
Sara (Debt Camel) says
So assuming you have lived in the UK in the last three years (holidays don’t count and I doubt have a broker account would be seen as a business) then you can apply for a DRO.
You can talk to National Debtine about this – you can’t apply yourself, it has to be through an approved intermediary. You can use webchat or phone them from abroad on +44 121 227 4780.
Your choice is to get a DRO now and aim to resave up a lot when you return to the Uk in 2 years time, aiming to buy in 6.
Or to ask your creditors to accept token £1 a month payments until you get a job (see https://debtcamel.co.uk/token-payment-debt/) then repay the debts and then start saving.
One problem with a DRO is that it will make it very hard to rent privately in the UK when you return unless you have a guarantor.
It is also possible that you may get a Debt Relief Restroiction order because of the way you have spent the money, see https://debtcamel.co.uk/bankruptcy-restriction-order-bro/ but that is unceetain and you may decide you don’t care anyway.
Anthony says
I have just had a DRO submitted and just wondering what will happen to the main current account I have in joint names my partner (no overdraft)? Reason I ask is one of the debts listed on the DRO is Barclaycard. Are Barclays Bank and Barclaycard linked? Should we open a new current account with a bank not linked to any of the institutions listed on my DRO? Also, how badly will my partner’s credit record be affected by my DRO? Thank you.
Sara (Debt Camel) says
I suggest you need to close this joint account immediately and open 2 separate current accounts, not a joint account. Otherwise your DRO will have a bad effect to your partner’s credit record.
Anne says
I’m applying for a DRO. I am also being assessed for a daily living expenses grant from a charity. If this gets awarded it’ll be £1600 next month and again in Nov and I’ll get reassessed for it again for next year. Do I need to declare this as income considering the cost of living is continuing to rise and it won’t actually go very far
Sara (Debt Camel) says
talk to your DRO adviser about this, but a grant doesn’t sound like income to me.
Hayley says
Hello,
I am applying for a DRO and I’m struggling to find account numbers for most of my debts because I have buried my head for that long. What happens about this? I have addresses and I have phone numbers how much etc just can’t find my account number they arnt on any of my credit files and I’ve signed up to a lot of them.
Thank you
Sara (Debt Camel) says
Any old emails may show the account numbers? Or you need to phone them up and ask. Who is setting up the DRO for you?
Jack says
Hi
I don’t know if this might seem like a silly qustion but I’m considering applying for a debt relief order, I currently have a phone contract that came with a phone, what happens if the phone contract is included in the order? I’m assuming you will have to return the phone and sim?
Sara (Debt Camel) says
are you in arrears on the contract?
Deppi says
Hi Sara,
I wonder if you can answer a question, because I called my intermediate, but because my DRO was approved, they say they dont have anything to do with me anymore.
In the list of my creditors I have an overpayment from Student Finance for overpayment from a previous year.
On 01/06/2022 I withdreaw from my course and they send me a letter there will be an overpayment.
The day before I submit my application I called them and asked the amount of the overpayment and the confimred to me an amount, and I have proof of that call on my bill.
My DRO was approved, but out of the blue, few days ago Student Finance send me a letter, stating the previous amount and an extra amount of £400. This is still the year of withdrewal I mentied above, before the call to them to confirm the total of the overpayments amount.
When I called them and told them that my DRO has the main amout for not the new that they disclosed to me late, they claimed some system error and I should call the Insovlency to add it. I told them, I dont even know if that is something that can happen, and that I willl call them back once I hear from the Insolveny.
I emailed all that to the Insolvency DRO Unit, also called to tell them what is happening, and I am waiting.
Where do I stand with that? Is there any way to amend the DRO or I have to pay it?
Sara (Debt Camel) says
who set up the DRO for you?
Deppi says
I called them (DRO intermediate) and they said in a very rude way, that past approval i am on my own, and i should only contact the Insolvency. Very inappropriate the way i was spoken, but anyway… I wait for the Insolvency, and i did chase them, but i am told it takes some time until someone gets to see my email and just wait. So I thought if you have any idea what options are available for such a situation. Is it even possible to amend the amount?
Sara (Debt Camel) says
Is that the name of the firm? “DRO intermediate”?
Deppi says
I do not wish to disclose the name of the intermediate. I will just say it sone of the two biggest non profit debt advisers. What this has to do with a question I am asking you if you can offer some insight, opinion?
Sara (Debt Camel) says
because they should not have been rude and should have helped you with your question. I suggest you send them a formal complaint.
I have never heard of anyone being turned away like this, which is why I would like to know who it is.
Natasha Parsons says
My application for a DRO was submitted today. How long do they normally take? I have an eviction notice for 29th and am extremely anxious.
Sara (Debt Camel) says
normally 1-2 working days. Have you discussed the rent arrears / eviction with your adviser?
Ste G says
Hello , my wife has applied for a DRO , in June , and just been told today that it has been blocked .
What reasos would they have to block it please .
She gets P.I.P , i helped her to fill the forms , was told that the forms were correct , then we get a call this morning saying it’s been blocked .
Can you advise me please .
Sara (Debt Camel) says
who was the call from?
Ste G says
The call came from the DRO officer , saying it was blocked , also said he will ring soon when he gets a letter .
My wife is just unsure what to do .
Sara (Debt Camel) says
the DRO Officer – is this at the Insolvency Service? or at the debt advice agency who set up your DRO?
There is nothing your wife can do until she finds out what has happened and why. It is incredibly rare to have any problems with a DRO and I can’t guess what these may be.
Ste G says
Can my wife re-apply , if so how long before she can do it .
Sara (Debt Camel) says
you have no idea what has gone wrong – there is no point in making any guesses at the moment. I know this must be very worrying but there is nothing she can do now.
Ste G says
Hi we had a reply , Said they have spoken to the DRO officer and been informed 1 , built up a lot of credit in March and April and came to us in June , 2 you was making payments to some creditors ( i stopped paying debts as soon as they told me too when i first applied for the DRO ) and 3 they forud lots of searches for gabiling sites ( i have never had a bet in my life ) . There will be no appeal as the case was not admitted to the Insolvency service .
Would we be able to get a bankruptcy , based on this .
Sara (Debt Camel) says
I’m sorry but can you answer my question – who is “the DRO Officer” – is this someone at the Insolvency Service? or at the debt advice agency who was set up your DRO?
If it is someone from an advice agency, which agency is it?
Ste G says
Saints Debt Advice
Sara (Debt Camel) says
ok so that is a very small local advice agency.
I don’t know why they say this isnt suitable for a DRO if you stopped paying all the creditors when they told you to. The gambling makes no sense.
You can go back to them and say you want to make a complaint about this. Or you may decide the simpler option is to go to another debt adviser. you could call National Debtline on 0808 808 4000. Tell them what has gone wrong and why you don’t understand it. I assume you never paid the £90 fee?
Ste G says
I never paid the money as he said it never got that far . This is a copy of the actual text that i got .
Hi Mary I have spoken to the DRO Supervisor and they informed me that there are several issues 1,You had a build up of a lot of credit in March and April this year and you came to saints debt advice in June , 2 You were making payments to some creditors this is called preferential creditors , 3 There were a lot of searches on your credit file that were searching for gambling sites Leo Vegas , Virgin Bet , Bet Fred , this is all new to myself and Lin as we have never experienced a DRO being declined , I understand that there is no appeal as your case was not submitted to the insolvency service , if you wish to call in next week I will go through the credit reports with you .
Sara (Debt Camel) says
Deppi’s comments about the gambling soft searches are interesting – I haven’t seen that myself before.
If you say your wife has never placesd a bet, then looking at her bank and card statements will back that up – this is NOT a reason to refuse to put forward a DRO.
“building up a lot of credit in March & April” partly this depends on how much. There is a big difference between taking out a £10,000 loan and spending the money on a holiday and card / catalogue / overdrafts balances goiung up several hundred. It may have been realising that thet you couldn’t go on like that that meant you asked for help in June.
Actually taking out a £10k loan isnt a reason to decline a DRO – it would be a reason to warn you that the borrowing looked reckless and you may get a Restrictions Order. They are very rare for DRO and don’t really make much difference to most people if you get one, see https://debtcamel.co.uk/bankruptcy-restriction-order-bro/
“preference” is more subjective. If your wife had been repaying money to her sister and not paying her credit cards, that is clear preference and a DRO application may be declined. If she just didnt pay a couple of creditors becuase she couldnt afford to then she asked for help – that’s pretty normal.
I would be inclined to talk to National Debtline or your local Citizens advice about a DRO.
Deppi says
Just thought from my own experience:
It’s possible some payments showing being made because some creditors update credit files with a delay, and credit files show months rather precise dates, so it can be somewhat delusional, particularly if you see a balance changing in a month that it shouldn’t. If the adviser used your credit report to see that, they may have assumed wrong, but i would expect them to be more precise who, when, what ammount.
On the other matter, I’ve seen those gambling entries on my report twice, all soft searches and it was identification checks when i used insurance quote portals, triggering multiple insurances to offer a quote, or this is what happened to us, when i used it, and one after a year very near the anniversary for my car insurance, when i got an email from that portal with offers. I guess, its something to do with click you agree to the terms when we use such services.
Seems a more organised, maybe bigger advisor can navigate better all that. Recent credit, is subject to amounts of course, but I see it as more of a point rather the rest. Definitely worth checking with the big guys for a second opinion before looking onto bankruptcy.
I read this message and made me very sad, i wish you the best moving forward.
Ste G says
The adviser told us that my wife may not be able to apply again for up to 2 years ihe thinks is this correct .
The payments she made was to a catalouge as my daughter owed money to it . But never paid anything after they told her not to .
Sara (Debt Camel) says
when she was making those payments, was she also paying her own debts?
Ste G says
She paid all debts , untill we seen the adviser and was told to stop all payments.
Sara (Debt Camel) says
In that case this is not “preference”. Your wife was not choosing to pay off this catalogue debt of her daughter’s instead of her own debts. If the payments to the catalogue debt were small, this may well not prevent her having a DRO… if she was paying very large amounts to the catalogue compared to her own debts that may be different.
She has the choice of going back and trying to get this advice agency to change its mind, or starting again with another one, eg National Debtline or your local Citizens Advice.
Ste G says
Thank you for all your advice , If i start again with Nationla Debt Line , do i tell them what happend , or say nothing .
Sara (Debt Camel) says
tell them everything. You do not want another mess being created. From what you have said there was no preference and the “gambling searches” are irrelevant as she has never gambled.
Ste G says
How do i sett up Breathing Space please
Sara (Debt Camel) says
You can’t do this, a debt adviser has to. Is your wife being harrassed about debts – any particular creditor?
Mary says
Thank you everyone , your advice was great , unfortuanatly when talking to National Debt line we was told that since my Credit Union was probably more the problem than anything else as although I have a 6 and half k debt with them I also have 2.4 k savings and although CU won’t release that cash its still an asset and because its over 2k I wont be able to have a DRO
things seem more clear now even though its not what we wanted to hear , we do have a family member willing to lend us the money for Bankruptcy as advised by NDL I would like to thank everyone again and hope my situation helps others in the future
best wishes Mary
Sara (Debt Camel) says
Good advice from National Debtline.
John says
A few questions I have if somebody could please help
I have a debt relief but just had some follow-up questions.
If you have another debt with a company that is on your debt relief order can they still chase you for it,? The situation being I had a debt on PayPal for Paypal Credit which is on the order but didn’t realise I also owed a small amount on my available balance which as now been passed to a debt company, so I suppose my question is does the debt relief order cover the whole organisation or can they still chase the debt with it being something different?
And finally how long does it usually take for companies to stop contacting you once the orders been put in place, as mines been in place for almost a month now but still getting some letters and emails, I’ve even received a letter from one company acknowledging I have the order but then in the same letter demanding I now need to make full payment immediately, surely this can’t be right?
Any help would be greatly appreciated
Thank you
Sara (Debt Camel) says
The situation being I had a debt on PayPal for Paypal Credit which is on the order but didn’t realise I also owed a small amount on my available balance
If this was for the same account, then I think it should be included – talk to the adviser that set up your DRO about this.
how long does it usually take for companies to stop contacting you once the orders been put in place
Most should get this sorted in a month or so.
I’ve even received a letter from one company acknowledging I have the order but then in the same letter demanding I now need to make full payment immediately
That isn’t right – whaiich is the creditor?
Deppi says
They are allowed to send statements, which will say the full amount since the account is closed due to DRO. I was confused with one such letter “stating the full amount balance” but reading again it was just a statement, not a demand for payment. One way to spot if they are doing something wrong, is to check if they are adding interest, if they do, send them your DRO, file a complaint, if not resolved, take it to the ombudsman.
Your DRO advisor wont care for that anymore, they can not call the creditor. The insolvency can send them an extra email if you call them and tell them they are harassing you or a creditor who says they have not got the order.
Personally, I called all my creditors after 10 days and checked they gad the order, if not (2 creditors) i sent it, and kept the date/time/number i called, and if you call 0800 screenshots your mobile as evidence as 0800 dont appear on mobile bills (for most operators). If after all that you have problems, raise a complaint, and take it to the Financial Ombudsman.
Sara (Debt Camel) says
I called all my creditors after 10 days
You can do this if you want, but it is a considerable hassle and not necessary. These things get sorted out in the first month or so.
Alex says
Hi, I was gonna go through with a IVA and pay £100 a month for 6 years. I’m now thinking of doing a DRO
If my wages go up next year and I don’t tell them.
Could they find out?
Also.. how can I build my credit score back up when the DRO has been completed
Thanks
Sara (Debt Camel) says
Have you talked to a debt adviser about whether you are eligible for a DRO at the moment?
Because if your wages go up a lot next year, then a DRO may be revoked but in an IVA you would find yourself paying a lot more – the IVA payments aren’t fixed for 6 years, they will go up when you get more disposable income. Many people find they pay back all of their debts and even more because of the IVA fees.
So if you do expect a significant pay rise next year, you could be better off opting for a debt management plan now and avoiding any form of insolvnecy.
The first step is to talk to a good debt adviser – not an IVA firm – about your options and how things may change over the next few years. Call National Debtl;ine on 0808 808 4000.
Jack says
I’m really struggling at the minute, I have had a debt relief order for 2 months now yet I’m still getting letters from companies that are on the order Iv’e even had 2 companies sell my debt to an outiside debt recovery company since having the debt releif order, I didn’t think this could happen when on the debt relief order, I don’t think the reciever actually told any of the companaies I was on one, I thought this was one of the things they did?
Sara (Debt Camel) says
Debts in a DRO are often sold – this doesn’t make an6 difference, they are still included in your DRO and will be wiped at the end of the year.
Are you still getting any letters asking you to pay? Or are they just informing you what the debt is? Because it’s ok for them to write and say the debt has been sold if they aren’t asking you to pay.
Tina says
Im hoping you can help im in the process of getting a DRO but am waiting a faild certificate for my IVA..the company that are dealing with my DRO want me to pay the fee now & have sent me a text message with bank details that i have to pay the fee into…i feel this is in correct am i correct as i haven’t recieved failure certificate or even signed the DRO application form…please can you advise…thank you
Sara (Debt Camel) says
who is setting up your DRO?
are you waiting on anything except the IVA failure certificate? How long have you nee waiting for this?
Tina says
Hi its FWG & ive been waiting 6 months +
Sara (Debt Camel) says
Is it going to be easy to pay the DRO fee?
Have you been sent all the details of the DRO to sign?
And who is the IVA firm that is taking so long to end the IVA?
Are you being harassed by any creditors at the moment?
tina says
Hi yes I have the money for it but feel its inappropriate to pay it in to somebody’s bank account & no I haven’t been sent anything its all been done via text message & the iva company is Ebenegate
Sara (Debt Camel) says
do you know who your Insolvency Practioner is?
I agree it’s very odd to ask you to pay this when the DRO has not even been set up – it needs to be checked by you – any debt missed off cannot be added later.
Are you in any arrears on priority debts at the moment?
Tina says
Hi sorry for late reply..I have the DRO application now emailed to me & is correct..but the IVA company are saying 3-6 months for termination certificate & it just says insolvency service on the the bank details.
i have not paid anything into my IVA since last feburary & have been battling with the ever since for a failure certificate
Karina B says
Hello..I planning to start process of DRO, already sign application but didn’t send yet to National debt.
Have a 2 questions which not been discussed yet.
If i go through DRO now but in April will go to Uni , i will get finance for study and living expenses grant,it will be ok for DRO?( i think income remain the same) only will lose income from UC.
And second question about gambling ,i had a lot gambling transactions on my bank statement till January…but it was not only mine gambling ( I allowed to play my friend through my account) i been self excluded my self from gambling. So it will be a problem going through DRO?
Thank you
Sara (Debt Camel) says
Uni should be fine – tell your DRO adviser about this though now, they need to know before you apply about this sort of definite chage during the year.
Gambling – if none of the gambling was yours, then you should be able to point to incoming credit from your friend to cover the outgoings. But as some of the gambling was your, I am not sure it is worth going through this hassle just to prove that you gambled a bit less than it looks like. If you have self excluded you clearly had a problem yourself.
Gambling won’t mean a DRO application is rejected but it may mean you get a restriction order… see https://debtcamel.co.uk/bankruptcy-restriction-order-bro/ which is about bankruptcy restrictions but the same applies to DROs. This may not happen DRO restriction orders are pretty rare. But would you care?
Again talk to your DRO adviser about this.
Deppi says
Student Loan can be for tuitions or maintenance. Maintenance will be considered income according to the DRO gudance.
Also during the DRO if the debtor apply for student loan hey must inform the lender (Student finance England or anyone else) again according to guidance.
Karina must take a thorough advise on this matter, she may find serious issues down the road. Again, this is for MAINTENANCE LOAN, not the tution fees.
This is from the guidance:
Money received from a student grant or loan is income and should be apportioned across the months it relates to.
Where they already have a student loan the debtor should inform the lender of the DRO when applying.
Maintenance loans are treated in the same way as student loans.
Sara (Debt Camel) says
yes I know, that’s why I said she had to tell her adviser now. In practice this usually doesn’t prove to be a big problem but the adviser needs to know.
Jonathan says
Hi,
I have received the application form that my intermediary advisor is ready to submit to the Insolvency Service.
I have paid the £90.
Going through the form, one of my creditors is listed as DWP Advance Payment for Universal Credit.
The DRO is my own, and my partner got the advance on his single UC, before moving in with me to submit a joint claim. We now have a joint claim.
The debt is not mine and the advisor is aware of this.
However, in the DRO application it is listed as one of my creditors, with a debt value of £1.
Do you know why this is the case? Is it simply a token £1 to acknowledge that I am on the joint UC?
It’s not a massive problem, I was just curious.
Also, I had an IVA previous which I closed.
I gave the advisor the closure pack with outstanding balances.
I instantly applied for Breathing Space.
I assume the balances are the same.
Is it crucial that the balance submitted on the application form is accurate down to the penny?
Many thanks.
Sara (Debt Camel) says
Have you also covered any New debts you have eg arrears on bills?
Which agency is doing your DRO?
Are your total debts anywhere near the 30k level?
Jonathan says
No new debts have been accrued since my IVA.
The agency is StepChange
My debts are around 27k
I’ve spoken to Stepchange regarding the DWP creditor.
My question to you is
Is it crucial that the balance submitted on the application is 100% accurate?
I guess my question is – will the balances on my application have been checked by StepChange, as they differ slightly. I ask because most have gone up a bit, one has gone down a bit on the application form, compared with the balances in my IVA closure pack.
Many thanks.
Sara (Debt Camel) says
The balances don’t have to be exactly right to the nearest penny. If the difference you are talking about are tiny, I wouldld just tell StepChange about them and not worry.
If StepChange feel you may be getting close to £30k then it is very important the balances are as accurate as possible as if it turns out your debts on the point of application were actually over 30k, a DRO won’t be approved and may later be revoked (failed0 if this turns out to have happened.
If a debt is out by a few hundred, then it may be possible to sort this out later, but it’s just easier to get it right on the application.
I have no idea why the DWP debt has been listed. But provided you have told StepChange in writing that this is not your debt I wouldnt worry about it.
Jon says
Thanks. Yes, I’ve spoken to Debt Change. I think the balances are roughly right. They may have fluctuated slightly since my IVA closure. But certainly not enough to be going over the 30k. I’m assuming the Official Receiver informs the creditors anyway?
Sara (Debt Camel) says
yes that is why it’s important to get the creditors right. For example you may have borrowed from Weasely Lender and that went into your IVA but they then sold the debt to Stoat Debt Collector… who is now the creditor that should be listed in your DRO.
But StepChange are used to working all this out.
Charlie says
I’m about to apply for a DRO and I’m in social housing as a tenant. Will my tenancy be affected? I am not in arrears with my landlord.
Thanks in advance
Sara (Debt Camel) says
No it shouldn’t make any difference when you have a secure tenancy if there are no rent arrears. Tell your DRO adviser about this concern though, you should discuss everything with them.
jimbob says
I read with great interest your article on applying for 2nd DRO when one has been revoked. My situation is more complicated. I have plenty of receipts for essential spending but a few items i have not. Leaving inheritance money left a little over 2k before items not receipted. Is it still worth considering applying
Sara (Debt Camel) says
Talk to a debt adviser about this. Who did the first DRO?
jimbob says
Stepchange but they no longer do them. Advised me to contact CAB. Said after 2 years spending is disregarded but give it a go anyway. Current budget meets criteria but how the inheritance was spent will need looking at
jimbob says
12 months since DRO revoked and budget will still meet criteria next year so not all bad. Just be nice if we get approved earlier
Sara (Debt Camel) says
then talk to your local Citizens Advice.
jimbob says
Citizens Advice adviser says you cannot have 2nd DRO . She stated that her literature says not available for 6 years even if revoked early. cannot help said ask IS
Sara (Debt Camel) says
Talk to National Debtline then – 0808 808 4000
jimbob says
I will thank you. I checked their website and they have a clear reference to above situation. I was not aware they were accepted as official intermediaries
Tiff says
Hi
I’ve currently got an IVA and am struggling to make the payments. I’ve completed 2 years and owe around £27,000 as it seems everything I’ve paid in to date has been used in fees. I worked some overtime shifts last year to try to keep up with the cost of living and now don’t have the additional money they are requesting to pay into my IVA (around £3,000). The IVA company are proposing I extend the IVA which I’m reluctant to do especially as I’m already struggling to meet the monthly payment.
I’m considering a DRO and wondered how this would work with an existing IVA? Also, would I be able to take out a DRO if I have a lease car through work for both business and personal use. The money for this comes out of my salary. Will my adult sons salary be taken into consideration? He is living at home temporarily and working part time but intends to leave in the next few months.
Thanks in advance
Sara (Debt Camel) says
I worked some overtime shifts last year to try to keep up with the cost of living and now don’t have the additional money they are requesting to pay into my IVA (around £3,000).
Have you explained to the IVA firm that your expenses had also gone up? have they taken those into account?
Have you asked the IVA firm to reduce your monthly payment? See https://debtcamel.co.uk/help-ivas-cost-of-living/
I’m considering a DRO and wondered how this would work with an existing IVA?
Your IVA would have to fail first. Then a DRO could be set up.
It might help if you discuss your situation with a DRO adviser so you are sure whether you would qualify for a DRO. If the lease car is required for your work, that may not be a problem, but an adviser can look at the details.
Only your income is taken into account, but presumably your son is helping out with the household costs at the moment? It takes time for an IVA to fail so he may well be gone at that point anyway.
I suggest yu phone National Debtline on 0808 808 4000 and discuss your situation and whether you would be eligible for an DRO.
TIFF says
Hi Sarah
Thank you for your response.
The IVA company have said they base the monthly payment on what I was earning when the IVA was agreed not on what I’m earning now. I work in the NHS and received a 3% payrise last year which they want me to pay 50% towards the IVA. They haven’t agreed to reduce my monthly payment to take into account the cost of living increase.
I intend to seek further advice re a DRO.
To confirm – my son is contributing to household bills which is just about keeping me afloat and able to pay the IVA but not the additional amount for the overtime I worked last year.
Thanks for your help. An invaluable service.
jimbob says
Thank you for your great work. Irrespective of how my 2nd DRO application turns out. Had it not been for your site i would not have been aware of the option. Maybe its because of low numbers but there are many many quotes still say 6 years between applications irrespective of cancelled DRO
Sara (Debt Camel) says
Only about 1% of DROs are revoked. And many of those are because additional debts came to light. Or there was a windfall large enough to clear the debts in the DRO.
jimbob says
My DRO moratorium has just ended. Is it advisable to get a copy for future reference . And if i was to win the lottery next week does that matter any more
Sara (Debt Camel) says
yes, see https://debtcamel.co.uk/end-dro/
You can now win the lottery – good luck with that :)
jimbob says
Thanks for that. I will get my friend to do a copy. Lottery question was a little tongue in cheek. Was more to get a feeling that if my family was to send a few hundred for a desperately needed couch that i do not need keep worry about
Sara (Debt Camel) says
You would never have needed to worry about a gift of a few hundred.
jimbob says
These sort of scenarios i always found difficult to understand. My DRO application based income on below £50 per month left. So i always felt that my bank account should generally be around this total.
Sara (Debt Camel) says
no, in a DRO you are allowed to have £2000 in assets 9not including normal household and personal belingings)
jimbob says
Thanks for your responses. If there are others out there think the way i did they will have great clarity in their moratorium period
Michael Peoples says
Hi Sarah. I have a client who was advised not to go for a DRO as she is repaying £150 per month rent arrears to her private landlord [total just over £1000 in total]. Her entire income is benefits and she has been told that an IVA would be a better option but looking through your site it seems that she can pay the rent arrears and still qualify for a DRO. I certainly do not want to put someone into an IVA under false pretences and with false information so I would appreciate if you could help me advise this client correctly. Many thanks, Michael.
Sara (Debt Camel) says
What do you assess her DI at? Does she have disability benefits?
Michael Peoples says
The DI says £100 but the I&E is very tight for a single mum with 3 kids. She gets £98 DLA which has been excluded but even so her expenses are still way below any guideline figures. If she enters an IVA she will have to pay £100 until the rent arrears have been cleared and then increase her payments which i just think that she cannot afford.
Sara (Debt Camel) says
So this is a bit like Chinese whispers – your client is telling you what she thinks some debt adviser said about an IVA and you have rephrased that into a comment.
But the following comments
– are you sure the debt advice came from a real debt adviser? Not some debt packager?
– her expenses probably are unsustainably low because that has been all she could afford as she was paying her debts.
– even if she doesn’t qualify for a DRO, bankruptcy is clearly a better option from what you have said – if she can pay £100 a month into an IVA she can save up the bankruptcy fees in 7 months. Less possibly if she runs up arrears on some priority bills that can then be cleared in bankruptcy. And she is very likely to get some additional cost of living lump sum payments over the next few months that could be used for the bankruptcy fees.
Michael says
Thanks Sarah. Bankruptcy may be a safer option than a DRO and probably a lot quicker too. She has taken advice from a number of sources but it the problem seems to be the rent arrears. Effectively she is being told that if she can afford to repay rent arrears at £150 per month then does not qualify for a DRO. I did ask if family could help clear the arrears and she could then do a new I&E with a proper advisor but this was not an option.
Sara (Debt Camel) says
Effectively she is being told that if she can afford to repay rent arrears at £150 per month then does not qualify for a DRO.
I can’t really comment on this without seeing the I&E – most debt advisers would expect a single mum on benefits to be well under the 75 limit. Rent arrears are a priority debt and people will cut back normal expenditure to an unsustainable level in order to stay in their house – that does not mean that those abnomrally low expenses should be what are recorded on a DRO application.
Stuart says
Hi Sara, thanks for all you do to help people.
I’ll try to keep this as brief as possible between me an my partner we have around 28k debt so we are looking at doing 2 DRO’s we have some payment arrangements set up with creditors but we are living hand to mouth and in our over drafts to sustain this. I am self employed but the business really isn’t making much money at all at the moment as the market has been flooded with competition we are surviving on benefits.
I have a couple of questions.
Firstly I have been paying some but not others i have read on here that is classed as preference. So is it best to stop paying all of them for a little while before applying for DRO’s?
Secondly we have a sofa on finance that would obviously have to be included would we lose this?
Thanks in advance.
Sara (Debt Camel) says
As you are self employed, the best thing to do is talk to Business Debtline about these questions and the timing of your DROs: https://www.businessdebtline.org/. It will help if you have the finance agreement for the sofa to hand when you call them.
It may be possible for one of you to have a DRO before the other one.
Anne says
I’m planning to move nearer to my family so I’m able to keep my 10 year old granddaughter company during the the school holidays if/ when her parents are working.
Also, as I’m now 68, I would like the reassurance of knowing my family are close at hand, should I need them, but most importantly I went to spend much more time with them all!
The problem being that I applied for a small loan from a Credit Union, to cover the first months’ rent/deposit/removal costs, and was refused because I took out a DRO for £3.5k in 2019/20.
I’d forgotten all about it, truth be told, depression sometimes does that to memories.
So does that mean I won’t be able to apply for any kind of loan please?
I can pay £750 straight off it, as soon as I get the deposit back from this property, plus I’ve got £650 in savings, so I’d really appreciate your advice please, thank you.
Sara (Debt Camel) says
You can apply for a loan as your DRO has ended. But many lenders will reject an application.
How large a loan do you need?
Anne says
Morning Sara,
Thanks very much for getting back to me.
I thought that a DRO stayed on my credit file for 6 years from when I started it, meaning its two years before it’s removed, that’s why the Dorset Credit Union rejected my application, but if it’s now sooner than that, it would be most useful.
It’s because I had a DRO in the first place, and also because I didn’t disclose it, which was a stupid oversight on my part.
I was applying for £2,500, to cover the first months’ rent, deposit and removal costs of a new flat in Southampton.
Taking into account that I’ll get £750 deposit back on this flat, once I’ve vacated it, and the letting agency can see that it’s clean, and in good order, which I will pay straight off the loan, should I get one.
Anne. Ps.
Also, I would like to add that I owned my own home in Portsmouth from 1977, until 2013, and despite the fact that I was raising my young son on my own, as my then husband had walked out on us in 1980, I did not miss a single mortgage payment, I don’t know if that helps.
Sara (Debt Camel) says
I thought that a DRO stayed on my credit file for 6 years from when I started it, meaning its two years before it’s removed,
That is correct.
But you asked “does that mean I won’t be able to apply for any kind of loan please?”
And you can apply for a loan during the 5 years after your DRO has ended. But many lenders will reject you.
Can your family help you with these costs?
Haley cross says
Both my and my husband submitted a Dro I did 3 days before my husband. He got approval 2 days later. I’m still waiting 6 working days in. Is there a reason ?
Sara (Debt Camel) says
Have you asked the debt adviser who set yours up? They usually hear before you do.
Hayley says
Yes they just said can be up to 10 working days. My husbands was 2 I’m still waiting to hear
Sara (Debt Camel) says
Sorry no idea – your advisor would have told you if they thought there was anything unusual about your application.
marzia says
hello
i need some advice..i m currently on DMP paying 166 month for a 27 k debt. it will be over until i m 60+
i work p/t and get around 700 month plus UC around 1500 and child benefit around 200.
i cover all bills and pay a life insurance for myself and all groceries and kids related stuff ( clothing of b.days. tuition, school clubs)
I also pay about 200 to my husband towards rent and try to save bit for emergency.
At end of month i m left with around 100-200.
I don t see my work situation getting better right now and .been paying inyo the DMP for 7 years now and can t bear yo keep paying until i m over.. 60
We are in Private rent and it s yearly contract.
Would a DRO be better , could I applay for it..and do they fine comb the I&E and be as restrictive as Iva, i heard Iva you can t even go on holiday if you get some money extra snd must submit regular statements gor I&E?
I m trying to budget better but find it very hard to stick especially with food stuff
Thank you for help
Sara (Debt Camel) says
How many children do you have and how old are they?
How much is the rent?
CAn you say some more about the debts in this DMP? How long has the DMP been running?
Sara says
Hi I came out of my Debt Relief Order 31st March 2023
Everything has been closed and marked as settled on my credit file after I have contacted the debitors. However i still have moneybarn and motonovo showing and both have been continuing to mark every month as default no payment whilst being included in the DRO. Now its ended I’ve contacted them and both are saying it will take 9 weeks to look into removing it from my credit file and they will continue to mark default each month until they have looked into it.
Are they allowed to do this ?
Thanks sara
Sara (Debt Camel) says
Your credit record is going to be poor whatever they do for the next few years. It doesn’t really make much difference if they take a couple of months to do this.
Deppi says
You should check with the Ombudsman, because if they are FCA regulated, and the FCA handbook requires them to act sooner, you may be eligible to claim compensation. Call the Financial Ombudsman and explain what has happened. If you can claim, you will need to raise a complaint with the companies and take it to the ombudsman after 8 weeks. The companies will close it themselves if they are in violation of the FCA regulations but even if you take it to the ombudsman it will worth it. The ombudsman case is easy, they are friendly but it will take many months until this is resolved, but eventually, even if it means a small amount (probably circa at £50 it worth it. Your case is not only they act wrong, but also they discouraged you providing the wrong information (that they have 9 weeks to act) and the worry they got you into (regardless if your credit report will be poor anyway). Finally, dont accept to take a pathetic £10 or £20 from the creditors. When my Bankruptcy ended in 2018 I got several compensations from a number of creditors on this ground, however I do not recall the times.
Lily says
Hi. What does the DRO advisor check on bank statements? Do they check expenses? And bills
Sara (Debt Camel) says
They are trying to construct an income and expenditure statement for you for the next year. So if you know anything has changed or will shortly – your benefits have gone up or down, your rent is going up next month, etc – or you need to spend more on clothes or car repairs or whatever – let the adviser know.
Lily says
Okay thank you, I created an income and expenses budget with CAB. However in the last two months I have had to pay out to fix my car and so the budget is not a true reflection of this in these statements. Will this go against me?
I have my appointment for DRO on 22nd June through CAB
Sara (Debt Camel) says
No, just explain what has happened at your appointment. N
Lily says
Hi, sorry me again.
One of my debts was with my energy bill. However since creating my budget and being able to pay the amount the energy company requires each month (previously I was paying a significant amount less), my debt for my energy had almost gone. My energy debt was only £200.
Will this be seen as me having a preference for a debt?
Sara (Debt Camel) says
no it won’t – energy debts are priority debts. This won’t be a problem.
Lily says
Hi Sara, thank you so much for replying so quickly and for helping!
Another question, sometimes I claim expenses back through my job (mileage, activities, parking etc) will this be seen as an extra income? And will this have an impact on my DRO?
Thanks so much!
Sara (Debt Camel) says
No. Just tell your DRO adviser about this.
Lily says
Hi. I have also been borrowing money from family, and then sending it back when I get paid. Will this be a problem with my DRO?
Sometimes my family/friends send me money without having to pay it back, but other times I do have to pay them back
Sara (Debt Camel) says
Lily, I think you need to talk to a debt adviser about your situation. Whether a DRO is right for you and what your options are if it isn’t.
JOSEPH says
Under a DRO how do you pay normal bills each month and not debt ? For instance if your rent is £700 a month but you are not in arrears ?
Sara (Debt Camel) says
In a DRO your normal monthly bills just continue as normal. Is there something that you are worried about?
JOSEPH WICKES says
Not particularly I was just intrigued
My only concern is I’ve seen loads on information about renting a new property after a DRO
My situation is that me and other half have been renting for 5 years in the same property were in now – no arrears all on time – would landlord be told if I enter a DRO ?
I
As I’m worried
Sara (Debt Camel) says
Your landlord isn’t told unless you have rent arrears. Talk to. Your debt adviser about this – renting is an important point to feel comfortable about. But it’s important to face the reality that if you can’t pay your debts, this will impact your credit rating which may make it harder to get a new private tenancy.
JOSEPH says
Thanks Sara
So no rent arrears = landlord not told ?
And I’m able to pay bills as normal ? Certain bills are in my name and my OH transfers me the money to pay them
Sara (Debt Camel) says
yes, talk to your DRO adviser about bills and which each of you pays, but this won’t be a problem unless you seem to be paying more than your share of the bills.
Marie says
Hi Sara
I had a DRO that completed in July 2022 and am now trying to sort my credit file out. Several companies have made the balance zero with the correct default date and closed the account but some are still showing as large credit balances and wrong default dates. I wrote to all of them using your template (which is why some successfully corrected this) but a few of them have put the balance to zero but have now changed the default date to when the DRO ENDED not when it began? This isn’t right is it? It says in your letter it needs to be changed to when it began and no later so why would they do this? I’m taking it that would mean another year to wait for it to be removed if I don’t ask them to amend it again? Also how long should I leave it after sending all those letters before I should expect any missing corrections from the creditors that haven’t taken action? Thank you!
Sara (Debt Camel) says
No it’s not right – go back and ask them to correct this.
I suggest you you leave it three months then ask the creditors why they haven’t replied.
Marie says
That’s great, thank you for replying Sara
Lily says
Hi. How long does it usually take the DRO case worker to get the application ready and all your credit reports together, once you have had your telephone call with them?
Sara (Debt Camel) says
Which debt advice agency is it?
It depends a lot on how complicated your case is and how many checks the adviser thinks are necessary to hunt for debts that don’t show on your credit reports.
Lily says
It is with CAB. When I have checked my credit report all of my debts are on there that I have. Will this help?
Sara (Debt Camel) says
Some advisers like to check with your local council about any council tax arrears or parking tickets. Or the DWP and HMRC about possible benefit overpayments.
How long has it been so far?
Elle says
Hi Sara,
I have 28k in debt and have ignored all requests to pay my 3 credit cards. I realise j must do something as j do not want ballifs coming to my home.
I have received a default and not worried about my credit score. I am unable to pay my debt moving forward and believe I qualify for a DRO having researched.
My queries are.
1. Can I apply for breathing space to give me time to confirm a dro is what I really want
2. Should I apply to make token payments first of 1 pound and request to freeze interest and fees ( to see how much time this will buy me, as I read people do this for years – although I worry about interest being applied and taking me over the 30k threshold BUT also I cannot afford it in the foreseeable future as I have a disabled child and all my income is benefits)
3. Should I request a write off of my debts
4. Should I apply for a DRO
I am very confused which order I should use to manage my debts in.. but I really can’t afford to pay them. I have been paying them for 7 years and I am sure I have paid them off in interest alone for all this time but I was doing without necessities to make ends meet but I can’t do it anymore.
I also worry that I had to make an insurance claim to pay back a hospital bill for my son and when this gets agreed I will receive just over the 2k mark as a refund, so if I apply for a dro and it is granted this sum maybe paid very soon after or during the application process. Although I would most certainly use the funds received to buy essential items like I need a cooker and a sofa etc. Is this allowed or should I wait till the insurance company compensates me before I apply for a DRO.
Sara (Debt Camel) says
There is no chance of bailiffs coming until you have got CCJs. That is a long procedure and if you have just got defaults this is not close.
You are right to want to take action soon so your debts do not go over the 30k limit. That is the reason to act now, not worry about bailiffs.
But it sounds as though you shouldn’t apply before the insurance pays out.
1. Yes you can but it only last 2 months and a DRO often takes that long to apply for, so there are best done at the same time. Or when you have a CCJ and have told the creditor is applying to the court to send bailiffs. No need to worry about them now now.
2. This is a good idea. Not for years but to get interest frozen now. While you wait for the insurance claim to pay out.
3. That isn’t very likely at the moment. It usually requires a long period of debt problems. A DRO (if that is suitable for you, you do need to talk to a debt adviser about this) may be much quicker and simpler.
4. Yes when the insurance claim is sorted. BUT do talk to a good debt adviser such as National Debtline on 0808 808 4000 now to establish that you are eligible, don’t have better debt options and what to do about the insurance money. Don’t wait for this.
Sara (Debt Camel) says
Article on token payments https://debtcamel.co.uk/token-payment-debt/
These are not a good long term solution but should remove the pressure while you first wait for the insurance and then get the DRO set up
Grant says
Hey there, I’ve applied for a d.r.o and literally about to pay the 90 pound fee required to start it, Ive been sofa surfing for the past 8 months & all of my assets are gone, I’m on universal credit but my work coach feels that my d.r.o is conflicting with my commitments I’ve made to look for work… I don’t want to get punished an void my d.r.o for trying to get a roof over my head nore do I want to break my commitments to my universal credit an lose the only income I have, I’m actively seeking part time work but would like to go full time just so i can get somewhere to live, but due the d.r.o would it be better if I just stick to a part time vacancy an stay sofa surfing? My work coach on U.C needs some guidance on how to help me job wise I’ll be taking in paper work from my d.r.o application to help him understand but any advice would be greatful
Thank you for your time, I hope you can help clear the air on what I can do
Kind regards
Sara (Debt Camel) says
A full time job and paying rent and bills may well mean you are still eligible for a DRO.
In this situation you have to consider the order in which you do things. Unless there is an urgent need for the DRO, it may be best to just pay token payments while you find a job, save up a deposit and find somewhere to rent. This may also be easier without a DRO on your credit record. Then look at a DRO.
I suggest you talk to your DRO adviser about this.
Hl says
Hello, Im after some advice
I am already in a DMP, but have additional debt that came about after the DMP was set up.
I am looking to enter into a DRO.
Due to a relationship breakdown, having to moved to an adapted property, living costs and being in and out of employment and now having to reduce my hours considerable I am not going to be able to maintain the existing DMP or the other debt that has built up. I have about £20k in total (includes the debt in DMP, about 5k in DMP and £15k built up in around 2022) and I’m now looking to get a DRO to include the dept on DMP and the additional debt built up outside of DMP.
DMP was set up on Oct 2018 and estimates I will be debt free 2027, but have this additional debt that has accrued that I’d like to place into DRO along with DMP debts.
1. Am I likely to be refused based on my existing DMP and wanting to add additional debt to a DRO.
2. Am I likely to be refused as currently everything is up to date payment wise?
Sara (Debt Camel) says
1. Am I likely to be refused based on my existing DMP and wanting to add additional debt to a DRO.
No
2. Am I likely to be refused as currently everything is up to date payment wise?
No.
You soon won’t be anyway, will you? But there is no need to wait until you are at that point.
Who is your DMP provider?
HL says
Amazing, thank you for your response.
I’d prefer not to have the stress of something not being in place, so once I have separated our joint account (all debt is in my name) I will get it all put into place. Just trying to get my facts straight before I proceed.
My DMP provider is Stepchange.
Sara (Debt Camel) says
ok, you can go back to StepChange now and explain about the new debts and ask if you will qualify for a DRO.
Anne says
I’ve applied for a dro the person said this issue shouldn’t be an issue
I have favoured some debtors over others this is due to the constant letters and threats of “
Passing my account for a ccj and debt collection” I have anxiety and depression some debts I didn’t even know about! On my income and expenditure in -220 a month!
Second is, my daughters dad sends me
Money sometimes for her, he then sometimes asks for money back if u have any spare as he’s short for money too and ocassinsly when he’s lost his card he’s used mine to pay off a debt of his own but always gave me the money back! The person who did my application asked about these debts and I said sometimes my ex is shirt for money so I do literally just just it for him as he has a problem with Alchol so I get nervous he’s gonna use it on Alchol. Im
Worried it will get rejected.
Sara (Debt Camel) says
Your expenses are more then your income by £220 a month? HAs your adviser talked about options for increasing your income?
DRO advisers look carefully at the sort of things you have mentioned – if your adviser is happy with your application there probably won’t be a problem. For example a lot of DRO applications turn up debts the person is unaware of – not a problem at all.
Very few applications are rejected. When was it submitted?
Anon says
No I’m -220 for my daily libing which takes me over the £75 spare income I’ve no spare income. They sent it today, I’m worried it might be rejected I already sent the £90 before they were aware of my ex sending me money he couldn’t afford to send me for child maintaince and when he’s asked for the money back to pay for the payments he forgotten abour I just used my bank card on his credit card account and Laybuy account. But it’s only happened a few times and on my revent stameng it only happened becayse he lost his bank card.
Sara (Debt Camel) says
Fingers crossed, you normally get the decision pretty soon.
Stephen says
Was your dro accepted? I’m going through similar now. Thanks
Anon says
Yes it was it was sent on a Saturday, accepted by Tuesday.
Catherine says
My partner is considering a DRO. He separated from his wife three years ago and had a mental breakdown which resulted in him being dismissed from work on ill health grounds. His mental health means he’s on a whole host of antidepressants. I got together with him around two years ago and have been supporting him. He started a small woodworking business that initially flourished but sadly with the cost of living crisis it’s gone south and now he’s in a lot of debt around £20k. He moved in with me as he couldn’t afford his rent. He has taken two extra jobs as a delivery driver working every hour under the sun to pay his child maintenance and half of the mortgage on the family home which his wife is expecting to keep until their youngest turns 18 in 5 years time. His daughter now lives with us, initially his wife refused to pay maintenance but has just started. He’s now in significant debt and so am I. I earn extremely well but have used all of my savings to support him and now I’m in quite a bit of debt and my salary barely covers the bills. He’s honestly working as hard as he can to keep his head above water but it’s not working. I’m guessing the DRO might affect any joint debts he has with his wife I.e mortgage, we have no joint accounts but his business is registered to my home address and that worries me. I wake in a panic each and every day that I’m either going to loose him or we will loose my home.
Sara (Debt Camel) says
It isn’t possible for him to get a DRO because he owns part of the house his wife lives in. So the question is, what are his other debt options?
Can you say what sort of debts he owes?
He has now stopped paying child maintenance? When will the youngest child reach 18? How much equity is there in the house?
Nothing he does about his debts can affect your house.
Catherine says
He’s always paid maintenance because he doesn’t want his kids to suffer. He’s sometimes late but never completely misses it. He also pays half of the mortgage.
His debts are all credit cards which he used to keep his woodworking business going. He asked the banks for breathing space three months ago but now they payments have started again and he’s about to default on them.
His youngest will turn 18 in 5 years. Their mortgage is around £200k and the house has been recently valued at £550k.
His wife is refusing to share any joint marital assets with him and refusing to sell the house and to be fair he doesn’t want that, but he has nothing now. He can’t afford the £150 fee for mediation now and although they’ve agreed a parenting plan and are close to agreeing a financial plan which protects half the house for him in 5 years he now can’t afford the solicitors bill to draft it up and finalise the divorce.
I’ve now put my house on the market initially so we could move closer to his son but now it’s because we can’t really afford to live now and need to downsize and pay some of the debts off.
Sara (Debt Camel) says
You do not need to pay off his debts – don’t harm your own financial future for the sake of this. There will be an option that gets him into a safe position but it isn’t going to be a DRO.
The credit cards – were these just personal debts or did he take them out on a business account?
Catherine says
He is a sole trader and the credit cards are just in his name so not business accounts. The debit is purely down to him trying to pay for materials for his business.
He’s being physically sick every day from the stress and worry and I feel I don’t know how to help. I just want to clear the debts so we can start again. He’s working so hard doing the business and then doing two delivery jobs. His days are so long and he’s almost broken and shattered.
His wife is now asking for more help from him. I’m covering everything at our end and she’s telling him she’s subsiding him when in reality I cover the upkeep of their daughter in my home.
When they lived together before they married his wife set up an endowment and they jointly paid into it and continued to do so when they married. The mediator has confirmed it’s a joint marital asset and he is entitled to a share. It matures in February and could help pay his debts. But his wife is flatly refusing to share any and he’s trying to be reasonable by suggesting only 30% for the time he paid in after they married. He was earning so much during their marriage but now she earns more than he does.
Sara (Debt Camel) says
His credit cards – did they increase his credit limits when he was only making minimum payments?
I think should talk to Business Debtline about all of his options. See https://www.businessdebtline.org/
A serious option is to contact all the cards and ask to make a token £1 a month payments nd for them to freeze interest and charges. So the debts will default, that isn’t a big problem unless he needs to borrow more money, and no one will lend him any anyway as he has too much debt. He can then just clear them in 5 years when the house is sold.
He also need to reduce the maintenance that he is paying.
Is he on any medication for depression?
Catherine says
I don’t know if the cards increased his limit, I don’t think they did. Santander refused to allow him to have a breathing space as they said my earnings were enough for him to be able to pay. But it’s not a joint credit card so I’m not sure why they said that plus he explained by debt to them. They are now chasing him constantly.
Yes he’s on antidepressants 150mg and also sleeping tablets as well as blood pressure tablets. Physically he’s not in a great way and has been referred to a cardiac clinic but is ignoring the letters.
His wife is telling him she can’t afford to live and is telling his kids this too saying that Dad is missing payments and now paying his fair share. He won’t reduced the maintenance as he feels terrible guilt about that and she’s told him that if he does she won’t be able to cope and his kids will suffer.
Sara (Debt Camel) says
Did he tell Santander about his health problems? They should not expect you to pay his debts.
When he contacts a creditor he needs to start by saying that he has me task health problems, is on medication for depression and high blood pressure and is being referred to a cardiac clinic. Ask for his case to be considered by the vulnerable customer team.
He needs to ask Santander again to freeze interest and charges and accept £1 a month. And all the other cards.
Business Debtline have template letters he can use for this if he is to anxious to phone. He can add a paragraph at the top explaining his health problems.
Business Debtline can also help him draw up a budget which he can show to his creditors proving that he cannot afford to pay more.
He can suggest to his ex that they ask their mortgage lender to be able to switch to interest only for 6 months and to extend the term of the mortgage if she is in difficulty.
His kids are old enough for him to tell them the truth about his finances.
None of this is easy. But token payments will offer a stable way forward. If Santander continues to be difficult after he has told them about his health problems he can complain about this n
Catherine says
They are already on an interest only mortgage and his wife has just remortgaged as they came to the end of their term last week. She didn’t include him in the meeting and didn’t declare the change of circumstances either. The payment has almost doubled which just is crazy. So unfortunately they are now locked into a new 5 year fixed term deal now. And now she is asking for more.
I will suggest he contacts business debt online and see what help he can get. Thank you for all your advice. I’ve been going out of my mind with all the worry.
He’s very honest with the kids which is why they tell him they want to help which is actually quite heartbreaking as they shouldn’t have to worry about all this.
Sara (Debt Camel) says
He must have consented to this new mortgage deal?
But doubling does not mean it’s a bad deal, rates have shot up.
Catherine says
He agreed to look at the mortgage but he couldn’t make the date of the meeting so she went ahead without him and told them he agreed. He was sent emails with the agreement and new figures but no option to consent or sign.
Anon says
I’m
Sorry to Chirp in, but for but for his own sanity he needs to stop
Please in this ex wife, and he needs to do right by himself also, he’s killing gimself for her and his kids when his kids will be more
Upset if he’s ill or worse due to the stress of the debt, if he is entitled to money he is due he should not be negotiating it , he should take his share! Is he paying half of the mortgage for his ex to still live in that house? He shouldn’t and he needs to face the reality that he simply cannot afford to do that, and the meat fact she thinks that ie acceptable just shows how entitled she is, they both need to sell the house if it’s in both their names or she needs to buy his half if she wants to stay there. I find it so awful what he’d going through but he really needs a wake up call and you should not be putting strain on YOUR finances Becayse of this, he needs to wake up, t might not be what you want to hear. My DRO got accepted but that’s because I literally have negative £250 a month I was constantly in overdrafts etc. he is gonna strain himself because his ex wife won’t do what normally happens when an marage ends and you have a house, you sell the house, and go
Your seperate ways. Bang out of order.
Becca says
Hi,
I’d like to ask a question, I’m considering a DRO, I have debts totalling just over 9k, my partner works and Im a stay at home parent. The debts occured 12 years ago when I lost my job and my ex partner left me high and dry (he ran up a lot of the debts in my name) anyway I immediately contacted all companies and set up payment plans, except one company wouldn’t take my offer payment and ended up with a CCJ which then accepted the payment. I’ve paid every month for the last 12 years but I’m now at a point where my income will be lost next year (due my my partner earning more and us losing tax credits). I’ve spoken to national debtline and step change debt charity who both said a DRO would be best and I have an appointment to apply through citizens advice soon.
However, citizens advice said I might be refused because I pay set bills and my partner pays for everything else (I’m paid monthly and he is paid weekly) so It makes sense that we pay different bills rather than split them (I cannot afford to equally split them anyway, he picks up the shortfall).
Also I’m still paying all the debts each monthly the agreed monthly payment, do I need to stop doing this before I do the dro?
Kind reagrds
Sara (Debt Camel) says
Well at the point your income stops, this isn’t going to be a problem is it? When do you expect this to happen next year? If your partners income has already gone up, have you notified tax credits – you do NOT want to get a DRO now and then find later you have a debt for a tax credit overpayment that should have been included in the DRO
Becca says
Hi Sara, thank you for your reply, tax credits went down this year, we’ve already paid back and overpayment from last year, it goes down again next year as one child leaves education and our youngest doesn’t qualify for any benefits as born after the cut off year. So the drop in benefits next year is down to multiple reasons, we are currently on the correct tax claim as the overpayment was sorted and already recovered by HMRC, there won’t any overpayment next year as his income remains the same now, it went up last year and beging of this year (before April).
I didn’t want to include my partner’s income in the DRO claim though (he’s very funny about his finances and other than bills we don’t share income) can I do the dro on just my sole income but state we share bills? Or do I need to do a whole house budget? I was told by step change etc that just income is fine as long as my budget shows our household bills are shared, I have less than £75 left a month so I think I do qualify on just my budget.
Is it best to stop paying the debts (the payment plans I’ve been paying) before doing the DRO? One of them is CCJ.
Will I need to submit bank statements?
Will I be able to keep my bank account (I don’t have any overdrafts, they’re just basic current accounts).
Kind regards.
Sara (Debt Camel) says
can I do the dro on just my sole income but state we share bills? Or do I need to do a whole house budget?
You need to talk about the options here. Basically you don’t have enough income, it’s just a question of how the DRO adviser sets up your application.
Is it best to stop paying the debts (the payment plans I’ve been paying) before doing the DRO? One of them is CCJ.
you should not stop paying the CCJ excpet possibly the month before the DRO is you are trying to get the DRO fees together.
the other debts, you should treat them all equally. If you can’t pay them without getting behind on bills or borrowing more, then it’s normal to stop paying or to offer them all a token 31 a month. Your DRO adviser will suggest what you should do.
Will I need to submit bank statements?
This depends on the adviser that is setting up your DRO.
Will I be able to keep my bank account (I don’t have any overdrafts, they’re just basic current accounts).
Possibly, it depends on the bank. But you will be able to open anther basic bank account.
Stuart says
i have debt, my wife has debt , all unsecured, all individual names ,all under £30,000, we own no house, she has no car, i am getting a new better decent paid job, it will allow my wife to give up her part time job, we are both on a dmp at mo. can my wife get a dro on no income, she wants to go back to being a housewife and not a job seeker, i read it is not compulsory to be a job seeker or thus forced to claim job seeker benefits if anyone makes a dro application, and my wages will cover all food, gas, rent, council tax, all living costs etc. she will put down zero expenses, and zero income on her DRO application is this ok.
Sara (Debt Camel) says
How long have you been in a DMP? Do you get any benefits now and will you after you pay increase?
Stuart says
we get no benefits now, we earn too much for any benefits, we earn around £13,000 each, i did speak to a dro advisor last year, when i said im considering dropping my hours even more, he said doing so will leave you negative £20 a month, but if i claim UC top up( the housing element,, it will put me over the £75 limit( i said i dont want to be a fulltime job seeker,( and if wife does exactly the same) but i said there is nothing to stop us not claiming UC, he agreed, there is nothing in DRO law that says you have to claim benefits.
so this is one option, or the other option is like i said take the new higher paid job for me, and my wife goes back to being a housewife and she claims a DRO on her own right.
been on a dmp for 2 years
Stuart says
we both earn about £13,000 each at the mo, but my new job will give me £32,000, which is more than our combined p/time jobs, i will need to have a car for my new job, no bus routes to new job, my wife will have to give up her job as i will take the only car, which is in my name, her current job isnt on any bus routes. so it makes sense on 2 levels, 1, she cant continue her p/time job without a car, which i will be now be using and she wants to become a housewife anyway. I assume the DRO application will want to know how much i will be earning, the only joint secured bills are council tax, rent and water. But the gas, tv licence , home broadband and electricity are solely in my name.
how exactly do we fill the DRO application in so it passes, her debts are around £12,000, so it isnt really worth her going to work anyway, cos if she has a year off as a housewife on a dro, it would almost equal her wages anyway. If she gets a DRO, she said she will consider going back to work in a years time , once the DRO is over and her debts are written off.
Sara (Debt Camel) says
You don’t fill in the DRO application the DRO adviser does.
One job at 32k will give you about the same take home pay as two part time jobs at 13k.
She will not be rejected for a DRO because she could get a job. Nor if she isn’t claiming all the benefits she could. But I can’t tell whether what you proposing is sensible – I think you should talk to your local Citizens Advice about your options and this new job. You also have to look at what your debt options are.