Debts that DO NOT count towards the £20,000 ceiling (note this ceiling was due to raise to £30,000 in June 2021 but has been deferred due to the coronavirus pandemic)
♦ Magistrates’ court fines
♦ Child maintenance,
♦ Child Support Agency (CSA) debt
♦ Child Maintenance Service (CMS) payments and arrears
♦ Student loans
♦ Budgeting loans and crisis loans
♦ Money owed under a ‘criminal confiscation order’
♦ Debts resulting from certain personal injury claims against you.
What debts can be included
Most debts are included in a DRO. These include:-
♦ Rent arrears
♦ Utility debts
♦ Phone arrears
♦ Council tax
♦ Credit cards
♦ Store cards.
♦ Bank overdrafts
♦ Bank loans
♦ Finance company loans
♦ Arrears on hire purchase agreements
♦ Parking penalty charges
♦ Mortgage shortfalls (this is where you owe your lender the loss between sale and mortgage, such as when the house is repossessed)
The golden rule is simple – include everything, the receiver will determine what is applicable.
1.65