DRO and partners earnings

[Wherehaveigone]

Will my DRO be turned down because my partner (not married) contributes what he can to the household expenses but that’s only around half of his (full time) income?

I’ll give some info that I think is relevant and try not to drip feed.

I contribute all of my (20 hrs p/w) income plus the child benefit and tax credits, which are paid to me.

My partner really cannot afford to give me any more at the moment because he pays for the car payments (salary sacrifice) and all other associated car costs such as fuel etc himself.

We need the car, that’s a given or we’d spend much more in public transport and other travel costs without it (rural)

I couldn’t work before we had the car and I can’t go back to being a sahm, I need to work for my mental wellbeing.

As well as that he has debts of his own to pay and we don’t both want to end up with poor credit. His debt is a loan which is paid off in 2 years and a credit card debt which he’s chipping away at (minimum payments) until the loan is paid, when he will pay the card off with a new loan.

My debts have got out of hand very quickly due to me borrowing on multiple credit cards with 0% offers which have now all expired. I’ve been stupid.

I’ve drawn up a budget with a debt charity and they’ve told me I’m in a break even situation financially without the credit card debt.
So basically everything I pay out including things for myself like haircuts, clothes etc (things I’ve missed out on due to trying to pay the debts) is covered but I can’t afford to pay the cards.

Neither of us are particularly high earners (between us we earn around £32k)

I know the way we do our finances is unusual but it’s always worked for us, until I stupidly started spending on those cards.

I’ve nothing really to show for it as a great deal of it was me throwing money at a difficult family situation and ultimately, a funeral etc.

So, because my partner only contributes around £700 per month, which is the same as I put in from my wages, will my DRO fail?

Do you live with him? I'm no expert; but I believe it goes off household income. If he could be contributing more; they'd expect him to; even if the debt is yours.

Stepchange would be able to advise for sure, they have a phone line and live chat. Their forms seem to ask for household income, too. I expect you'd have to put his income and outgoings too, and have the affordability calculation done on that, or it could be seen as being fraudulent.

I do live with him and StepChange are who I’m dealing with.

They’ve redone my budget a few times. Firstly using the whole household income, then saying it’s too complicated, let’s just use yours. Nope, that didn’t stack up either so now they’re going for one just using his ‘contribution’ as this is my debt solution, not his and what he has to pay out has to be paid out so he can only give me what’s left, which he does.

But part of my proof of income is the tax credit letter which shows our household income before tax but obviously doesn’t take into account the individual current circumstances.

I’m worried they’ll send it all over, I’ll pay my fee and then it’ll get turned down because it looks like I’ve got more money than I have.

You really need to get clear advice from Stepchange, and if they can't give it then go to someone else who can eg Citizens Advice or CAP.

I have phoned and spoken to them again this afternoon, they ‘think it should be okay’ to do the most recent budget (with partners contributions instead of whole income)

But that just leaves me hoping it will be, it’s not very reassuring and I could end up getting turned down and won’t be allowed to apply for another for 6 years.

They’ve told me I’m not a suitable candidate for an IVA and might have to consider bankruptcy if the DRO fails.
For that I’d have to save up (somehow) over £600 and then I worry that if they refuse me a DRO can they then refuse me a bankruptcy? StepChange person didn’t know.

I hadn’t thought to contact a different charity as they’re already helping me but I might just call someone else and see if they can answer some of the questions StepChange can’t.

CAB seems to say that it's household income that is counted, and that your DRO advisor will assess your household income and outgoings. It says "sometimes" the DRO advisor will accept "a reasonable contribution" from other household members in some circumstances.

It is a bit vague and crap, I'm sorry

A friend of mine had a joint income.. But didn't have to declare her partners wage because he was unaware of the debts. ( supposedly but I belive that not to be true) either way it worked.