Considering a DRO

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HollyMex

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Joined: Thu Sep 17, 2020 7:25 pm

Post by HollyMex » Thu Sep 17, 2020 7:54 pm
Hello there,

This might be a long post, but I wondered if you could give me any advice.
I am currently in an IVA with payplan and I am 2 years into my IVA, with 3 years remaining. With the ongoing COVID19 situation, I am no longer able to maintain the IVA payments.
I am considering going for debt relief order and letting my IVA fail. I have been emailing my case worker back and forth but she seems to keep skipping over the DRO, I don't know if she is doing this on purpose? because maybe she doesn't want it to fail because I guess they get money from my payments? - I could be completely wrong on this.
I also want to mention that I am an online English teacher (work dried up with the world economic situation right now). I work for a Chinese online teaching business, but I pay my own taxes so I guess technically I am classed as self-employed, but wouldn't really class myself as having my own business per say.
To be honest I haven’t paid my phone bill, I am behind on my phone bill just so I could pay my iva payment. Sounds silly but I just didn’t want the hassle of forms and meetings and just hoped that things would pickup for me and everything return to normal. But I don’t think things are going to return to normal, not for a while, if anything I think they may get worse.
I am earning way less than the agreed £800 in my original iva agreement and the £200 a month payment is just too much. I have been asking my parents to help me out as I didn’t want the hassle or embarrassment to have to ask again for reduced payments (plus they only extend the iva) or the hassle of having to change things or the agreement. The past four months I have earned £484 in May, June £570, July £416, Aug £526
The last month has been my worst month, I only earned £277 and this month may be even worse.

HollyMex

Posts: 4
Joined: Thu Sep 17, 2020 7:25 pm

Post by HollyMex » Thu Sep 17, 2020 8:01 pm
Also to add....

I don’t think bankruptcy is an option for me really, it will cost more to apply than a DFO and I guess I am still earning something, no matter how little and will be required what is left to make payments towards my debt for maybe 3 years? Which I have just over 3 years left of my iva, so I don’t think it makes much of a difference to me really. And I don’t think I qualify for finishing my IVA on a “funds paid to date” basis as it has only been two years.

Old expenditure

Total income £800

Total expenditure £600

Monthly surplus £200

Mobile phone £40

Board lodging £200

Hobbies/leisure £60

Housekeeping £125

Savings £50

Hairdressing £25

Clothing/footwear £30

Toiletries £25

Public transport £45



New expenditure

Mobile phone £75

Board lodging £300

Housekeeping £125

Toiletries £25

Hobbies/leisure £30

I have cut out many things from the old expenditure and as you can see, some months I can’t even afford that, and that’s not including any payplan payment. I do not have any assets, I don’t own my own home, don’t have a car, very few possessions. Most expensive thing I own is my laptop, which I need for my work, and my debt is less than £20,000 and as of now I don’t have more than £50 disposable income after all my expenses. My case workers first response to me, was that my new expenditure shows I have available £245 per month!! I emailed her back saying I have no idea where she got that figure from and are waiting her response. I can only assume she read the email wrong. My dad thinks however that they are trying to pull a fast one on me and to stick to my guns.

Also to make my case more complicated and in regards to claiming benefits, I do not qualify, and I cannot apply anyway as I am not in the country. Right before the pandemic, I went to Mexico for an intended vacation to visit friends, but then the pandemic happened, and I got stuck here. Fortunately, I can do my work anywhere in the world as long as I have my laptop and a wifi connection, but my work started to dry up like most people and I have been earning less and less. I did not want to fly back because of what is happening, not only that but I clearly cannot afford to fly back. I then had to go to the immigration office, and I managed to get a humanitarian visa based on humanitarian grounds, it expires in February, but my parents may be generous and help me to get home at Christmas.
But even if I were at my home address in England, I still would not qualify for any benefits as I still live with my parents, also you have to be earning £50 or less per week (I think), which even though I am earning very little, I still earn more that that, unless my income drops to £200….my income last month was £277. Upon returning home, I still won’t qualify as I will have been outside the country.

Before people say how can I afford a vacation, as you can see in my old plan, I was allowed to say £50 a month and thus I have been saving and so I treated myself to a vacation.

Anyway, if I qualify for a DRO, I might as well just let the IVA fail now as I know it takes a few months to fail and then upon my return home in the new year, I can submit a DRO application either with payplan or another debt charity.

What's your thoughts?

Foggy

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Post by Foggy » Thu Sep 17, 2020 8:07 pm
I would say, if you qualify for a DRO, to go for it -- you have obviously looked into it .... maybe have a chat with your local CAB as well.

I would also have a look here --- Covid - 19 Guidelines for IVAs : https://www.gov.uk/government/publicati ... a-protocol to see if there is anythimng there with which you can prod Payplan into being more helpful in the meantime.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
http://foggy.blogs.iva.co.uk

HollyMex

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Joined: Thu Sep 17, 2020 7:25 pm

Post by HollyMex » Thu Sep 17, 2020 8:15 pm
Hey Foggy, thank you for your reply.

Yes absolutely. The issue is finding out if I qualify. As I mentioned i feel my case worker is beating around the bush amount the matter and I have already mentioned 3 times in emails. So I am trying to find out from elsewhere.
I emailed stepchange who told me they cannot offer any advice because I am in a an IVA at the moment which is a legal agreement or something like that.

MrMole

Posts: 24
Joined: Thu Aug 06, 2020 11:16 am

Post by MrMole » Thu Sep 17, 2020 10:35 pm
Hi,

It isn't your IVA caseworkers job to talk to you about DROs, it's to manage the IVA.

If you think you might qualify, and your situation won't significantly improve in the next 12 months then get some advice about a DRO. Keep the IVA going until you've made a decision.

Good luck with it all.

kallis3

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Post by kallis3 » Fri Sep 18, 2020 6:32 am
If she is going to go for a DRO, she will need to let her IVA fail first.
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

HollyMex

Posts: 4
Joined: Thu Sep 17, 2020 7:25 pm

Post by HollyMex » Fri Sep 18, 2020 4:19 pm
Thanks guy's, my case worker got back to me. She said that she could authorize a few month payment break for me. Or if i decide to go with a DRO, to let her know so that she can let her supervisor know I will be failing my IVA.

I got in touch with the national debt-line and they said from what I have told them, it sounds that I may qualify and a DRO be a much better option for me. But because I am self-employed, i need to now get in touch with the business debt line, but that they will have access to my data and i won't need to repeat myself. The business debt line will be able to give me further clarification if i qualify and if I do I can start the process of letting my IVA fail.

My only concern is that remember, I am not in the country right now. If that will be a problem, then I would take a few month payment break, until i am home in the new year and then go with the DRO, if my situation hasn't improved.

But ideally i want to go through with it now as it is going to take a few months for my iva to fail

Foggy

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Post by Foggy » Fri Sep 18, 2020 4:48 pm
Best of luck. Please let us know how you get on.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
http://foggy.blogs.iva.co.uk

kallis3

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Post by kallis3 » Fri Sep 18, 2020 4:57 pm
Best of luck from me as well.
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
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