Debt Relief Order Allowances
One of the key parts of a Debt Relief Order is that you must have £50 or less disposable income per month. But how exactly do they decide on what your disposable income is? Well a member of Money Saving Expert has managed to find out from a CCCS representative…
This forum post says the following:
- £446 food groceries clothing combined
- £195 for car including insurance, running costs etc.
- plus extras (tobacco etc)
These numbers are based on a family of two adults and one child. Other posters state that the numbers involved are different depending on the age(s) of any children concerned.
These details are not published, although we can’t see why they shouldn’t be, and could mean that someone who feels that they have no chance of a DRO will actually qualify. It’s worth checking with your approved intermediary.
There’s an even more revealing set of figures in this post, which would imply an allowance of £921 for a family with 2 adults, 1 child (under 14) and a car. Children between 14 and 18 would have an even larger allowance.