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A good starting point for Debt relief Order Questions
By malnuman
hi, great forum and helpfull advice.. need some for myself now.. i have just found out about the DRO and this would be a great relief for me to get rid of my debts which i am having trouble paying off.. what i really want to know is about the £50 cut off.. will this include the combined money of myself and my partners tax credits/child allowance? the debts are mine and with just my own wages i dont have £50 spare for myself monthly..but with my partners tax credits our combined total would be just over the £50 would i just fill in the forms as if it was just me living alone? also i pay off my creditors at the moment through a DMP, (which chrage a £30 monthly fee!).. would this affect my application? thanks in advance for any advice...
By Melissa S
Hi there malnuman and welcome to the forum,

I am not all knowing on DRO's but as far as I am aware you would have to include your partners household contribution on the application form. This would include all types of income including tax credits. Have you had a look at the BeatMyDebt.com living expenses guide which will help make sure you include all of your eligible living expenses.

As far as you DMP, you can stop this at any time as it is an informal agreement and it will not effect your DRO application.

I am sure an the other posters here will be able to help you further or correct me if I am wrong.

Please keep us informed and good luck
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By Geraldine
Hello malnuman

As Melissa has said when you do the income and expenses budget for your DRO you will be expected to do a full household income and household expenditure budget. However if this leaves a household disposable income that is over £50 do not worry. The fact that your personal disposable income is less than £50 will be recognised given that the tax creditors and other benefits that your partner receives will not ultimately be included. However you do have to mention that they are received into the household.

With reference to the payment and fee that you are currently paying your DMP company each month this will not matter. What matters is your financial situation as of today and you ability to make monthly payments moving forward.

Who are you planning to work with to make your DRO application?
By malnuman
thanks for the replys and advice... much appriciated... i am thinking of going with "stepchange" to do my DRO, i will fill out there online giude with my total household income... but i am waiting till november as my previous employer (royal mail) is taking me to the county court as they kept on paying me wages after i left, and even though its been 2 years they now want it back and have a court order on me to go to court.. could i include this debt on my order? its for £1600...
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By Geraldine
Hi malnuman

Yes, you can certainly include this £1600 debt to your old employer in your DRO. In fact you have no choice it must be included. Even if they get a CCJ (court judgement) against you this will still be included in your DRO.

Stepchange is one of the organisations that does DRO applications so you are doing the right thing speaking to them about it. Just one word of warning..... they will probably try to convince you to start a DMP with them first as this is how they make their money. However if you believe that the DRO is the best solution for you then stick to your guns and press them for it and they will help you I am sure.

Good luck with it and let us know how you get on.