This is where to post your first questions about any debt problems you have
By Mogwai
#33390 I currently have around £13000 of debt, on a loan and 2 credit cards. I've been managing to pay every month but have surprisingly just been allocated a property with a HA, so now, with bills to pay, there's no way I can afford to keep paying the minimum amounts and afford to live.
My income is DLA higher rate mobility which all goes on a car, DLA care middle rate, Carers Allowance and Income Support. Realistically my budget has less than £50 a month disposable income but I don't know if my expenses would be allowed or not. I don't have the upfront money to go bankrupt really. Any advice?
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By Hayden
#33393 Hi Mogwai

From what you have said it sounds as though you would absolutely qualify for a DRO. You are living in rented accommodation and do not own a car (given yours is a mobility vehicle). Your income is made up entirely of benefits and so by definition you cannot have any disposable income.

My suggestion is that you should make an appointment with your local CAB debt advisor to discuss the DRO option. It might take a couple of weeks to see them but persevere.

Note: when completing your living expenses budget (to determine your disposable income) you do not have to justify your DLA expenditure. Add the DLA you receive as a line item in your income but include a line item for exactly the same amount called "DLA expenses" in your expenses budget. In other words it is cancelled out and not included in the calculation. This perfectly acceptable.
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By Geraldine
#33397 I agree with Hayden Mogwai

It looks like you would qualify for a Debt Relief Order. If you do it will be a massive advantage for you as the cost is just £90 compared to £680 for bankruptcy. As such I recommend that you definitely speak to the CAB about that option first. If they say you do not qualify for some reason you always have bankruptcy to fall back on. However I cannot see how that would be the case.