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How many hours are you allowed to work/how much can you earn and keep a debt relief order? |
Submitted on: 9th May 2010 by Non-Member | Total Answers: 1
I owe about £5k and lost my job a few months ago. My only income is JSA. It does not seem likely that I will find a full time job any time soon, so I'm considering applying for a debt relief order. If I was to get a full time job i realise the DRO would be cancelled, but was wondering how many hours could i work if something came up, and keep the DRO? I would still be unable to pay my debts if I got part time work. I'm also currently living at home with parents, paying board, but cannot continue to do so for much longer. Any advice would be greatly appreciated.
Re: How many hours are you allowed to work/how much can you ...
In order to qualify for a DRO you must owe less than £15,000 and have a low disposable income (less than £50 per month). Your disposable income is worked out by subtracting your basic, essential
living costs from your total income. Therefore there is no set figure or set hours that you can work or earn to still qualify for a DRO. There are also other factors to consider such as assets that you may own.
Assets other than your vehicle (including savings) can't exceed £300 and your car value can't be in excess of £1,000. There are also restrictions on the type of debts that can be included in the
order: court fines, child maintenance and student loans will not be allowed.
It is all individual and completely depends on your personal circumstances, each DRO is as different as the people involved. If your debts have been included in a Debt Relief Order and your
circumstances change, within the 12 months that it usually lasts, then it may be that your disposable income rises, You could find yourself in a position in a position to continue paying your debts, the Debt Relief Order
would no longer be required and could be terminated. If your circumstances do not change and your disposable income stays less than £50 then the debts are discharged at the end of the DRO.
Bankruptcy
This question was answered by Debt Advice Foundation, an independent UK debt advice charity. If you're looking for an alternative to Bankruptcy, Debt Advice Foundation provides a free, confidential helpline and can advise you of all your options. Click here to find out more.
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