Information and questions relating to Debt Relief Orders

Moderators: TalbotWoods, JaneClack

By MARK123
#217131 I am very worried. Today my debt relief order application was submitted to the insolvency people. and my 90 quid paid a few days ago.
Presently my only income has been employment and support allwance. but today i recieved a letter saying that i am no longer entitled to the benefit. The letter said i was payed up to the 3rd september. They said i can appeal the decision or go for jobseekers allowance.

Would this affect my DRO in any way at this stage??/
By MARK123
#217132 I have just spoken to debtline but it still a bit confusing!

They said as long as i did not have a surplus of 50 quid spare it ok.
so wat about if i just became a househusband for 6 months as an example, therefore had no income, would criteria be met.
By ph3005
#217279 Your DRO will only be cancelled if your income goes above £50 surplus per month. So if they are taking benefits from you it won't affect your DRO. As long as for the 12 months of the DRO you have £50 per month or less surplus income you will be debt free after 12 months.

So if you have no income then that is also fine, so basically don't earn much if you want to see your DRO through to the end.
By ticketyboo
#217288
MARK123 wrote:I am very worried. Today my debt relief order application was submitted to the insolvency people. and my 90 quid paid a few days ago.
Presently my only income has been employment and support allwance. but today i recieved a letter saying that i am no longer entitled to the benefit. The letter said i was payed up to the 3rd september. They said i can appeal the decision or go for jobseekers allowance.

Would this affect my DRO in any way at this stage??/


Simple answer : NO As far as I know DRO's are the same as bankruptcy for amounts less than £15000, so you would need a considerable disposable income for you to worry.
But definately appeal the the dwp decision on esa.
User avatar
By TalbotWoods
#217293 ticketyboo

so you would need a considerable disposable income for you to worry


No DROs are becoming an annoyance, if you have more than £50 excess then you will be rejected.

I already know of people on state pension and topped up to minimum pension guarantee level (via pension credit) that are being rejected - as they have over £50 excess per month

So no you don't necessarily have to have considerable disposable income, even pensions on the absolute minimum are getting rejected!!

Tim
By MARK123
#217308 Thanx guys. My only concern was that if my income went to zero because off not being entitled to benefit any longer. Then would this affect my DRO? On the order it says i have to inform them off any increase in income. I could not see any thing that says i have to inform them off any decrease?

I have appealed against ESA decision. Basically i suffered with Anxiety disorder which has prevented me from working for last two years. However in that time i have acted as a househusband to my 1 year daughter and 3 step children and partner. if my appeal is rejected then i will carry on househusband role for a period to get myself sorted to think about part work. And not claim any benefits as my partner earns good money and covers bills. and i pay her back with househusband role for now.

So the outcome could be a decrease to no income. currently insolvency service think i have ESA income that has now been stopped.
User avatar
By JaneClack
#217321 In which case you have no money. The Insolvency Service only needs to be informed if your income increases and thus makes a surplus of over £50. If your income is going to decrease it is not going to increase a surplus that already must be less than £50 per month!