Debt Relief Order gives Dave a fresh start

Dave is a single father of three living in a Housing Association Property, on a low income of only Universal Credit and Child Benefit. Dave initially came in regarding a Court Fine Letter he had received, and upon further exploration, it became clear this was not his only debt. With the pressures of rebuilding his life after being homeless and looking after three young children on his own, Dave’s finances had become overwhelming, and he could not see a way forward.

When working with Dave on his budget, we found he had a large deficit, meaning that his regular, essential expenditure was higher than his income. Dave had already maximised his income through benefits, which meant his ‘debt options’ were incredibly limited as he could not afford to make any payments to his creditors.

Constant demands and letters were causing Dave a lot of stress and anxiety. We started a ‘Breathing Space’, meaning he had 60 days of holding action from creditors to find a suitable solution.

During the appointment, we called creditors and got a Credit Report. Together, we identified that both Dave’s rent and Council Tax payments were up-to-date, meaning only ‘non-priority’ debt remained.

When considering debt options, it became clear that a Debt Relief Order would be the Client's preference, and this would mean they could have a fresh start. With the help of the DRO Unit, they managed to pay the £90 fee in small installments, meaning their application could be submitted and over £3,500 worth of debt would be written off.