If you rent your home and have no other assets to speak of and a low disposable income a DRO might be the way ... a short sharp shock, rather than a protracted debt management plan or IVA.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
I know the figures for a DRO are going up in October so it is something to consider. Not sure if the initial fee is going up or if the DI figure is going up.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
I don't think the level of surplus income is increasing but the totasl debts can be £20,000. It depends on the income and expenditure but it is certainly worth looking at.
A DRO is where you have a surplus of income less than £50 per month. If you receive housing benefit this is possible so it could be worthwhile speaking to your local Citizens Advice Bureau who could organise this for you. It only costs £90 and it pretty straightforward so definitely worth considering.
If you have a surplus over this amount then an IVA may be an option but it is possible you have not allowed all the expenses to which you are entitled.
It is called a Debt Relief Order. It is for debts under £15k [rising soon to £20k] and where there are few assets and little surplus income. I attach a link below to the Government website which may be of better help.
A DRO is a Debt Relief Order. It is Bankruptcy light realistically.
From October your debts can amount up to £20k and as long as you don't own your own home, have less than £50 DI per month for 12 months then you can do a DRO.
It will cost £90 but at the end of the time you will be debt free.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Looked into a DRO and it seems reasonably straight forward if I qualify and as you said there were expenses that I didn't account for within that last post such as mot and road tax, kids school uniforms (with 3 kids you can get into debt just from uniforms lol) sorry, trying to make light of it all... but if you divided up he annual cost of all those things on top it would soon leave incredibly little left over.
Next question... I am the sole earner as the kids are young so my partner (not married) stays at home with them and the benefits are in joint names. So as I am basing the household income on a joint income of wages and benefits, does it have to be in both our names or can the IVA, DMP or DRO be just in my name?
In so deep I need diving gear... had enough of drowning so now looking for the oxygen I need to breathe again!
If the debts are in your name only, then the solution will be as well. Some firms use household income to work out disposable income -- avoid these.Most will use your income only ( they will enquire as to your partners income only to calculate her fair share of the household bills).
Don't worry about injecting a little humour to what is a serious situation .. it helps and we all do it (some more than most!).
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Ok so I drew up a spreadsheet of everything that comes into the household and everything that goes out accumulatively accounting for the analysis cost if schools supplies and uniforms and road tax etc and dividing it up into months. It leaves £79 expendable and that's not including any kind of SDP activities.... of it were the cut down the middle that would leave me alone with £39.50 disposable income per month... meaning I in theory would qualify for the DRO.
Of they do it on the total income and the total outgoings it still close at £79 DI
In so deep I need diving gear... had enough of drowning so now looking for the oxygen I need to breathe again!
The allowances might differ in a DRO and might be tweakable. You need to nip into your local CAB as they are approved to deal with these, as far as I am aware.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Ok. Will have chat with my boss and see of I can get a day off to pay a visit to the CAB and see what they say... I imagine it all has to be done face to face but will they do any of it over the phone? Ie talk to me about income and expendature? Only I don't want to go in there saying these are my income and outgoings and look like a fool because they say well you can't put this or that down or you have missed off this or the other and then think I'm making it up...?
Has anyone done a DRO that can advise from personal experience?
Thank you all so much for the advice so far... its helped a bit already just knowing there are options.
In so deep I need diving gear... had enough of drowning so now looking for the oxygen I need to breathe again!
