Just typical! Redundancy!

Stillsmiling

Well life has a way of throwing you a curveball when you least expect it. We were down to around a year (maybe less) on our DMP when I got made redundant. As the main salary earner (and with the end of the DMP in sight) this was a bit of a blow. Anyway, today I'm mailing off full and final settlement letters offering around 35.5% to each and stressing that if they choose not to take it then my payments will be substantially reduced in the future (probably the minimum possible until I can secure another job). Fingers crossed they all (or if not all then most!) accept. I'll keep you posted!

Oh and for anybody who may recall me moaning about CCCS a month or so ago (the person I dealt with was rather rude and incorrect in what she said). A CCCS rep here offered to pass it on as a complaint and I took them up on that. Today I got an apologetic email from CCCS, agreeing that the person I spoke to was out of order and steps had been taken. If nobody else gets spoken to like that then that is good enough for me!

paulmapp8306

sorry to hear about your issues - not good

Re- settlements, I would have started at 20% - because most if not all creditors will reject first offers below 80% (assuming you can negotiate). If you made it perfectly clear you had lost your job, so income was drastically cut - allowing only for minimum £1/month payments for the forseable future, and that you were prepared to use redundancy money to clear debts BUT that requires your one and only offer to be accepted - THEN you may have a chance.

Still - I wish you luck in this, and in your job search.

Stillsmiling

Oh, thanks Paul. I've not sent the letters yet so could amend them and re-print. So you think I should suggest about 20%? I was torn between that and offering what I had in the hopes that they'd see it was all I could pay and would therefore accept it.

Hmmm, anybody else have other comments on this?

RAS

Hi

You do realise that if you claim any benefits before you get a job, the fact that you have paid debts which are not urgent may result in your benefits being cut.

So dont, basically.

You can pay debts that are due - your normal DMP payments or the arrears on the electricity but if you use savings or your redundancy money to pay full and finals, they will count that money as still being in your possession when assessing your benefit entiutlement.

Google "deprivation of assets."

paulmapp8306

Really? i asked my sister about this as she works for the benefits office, and is involved in determining "deprivation of assets" on new claims - and was told that paying debts (such as this) are fine.

You CANT Pay back a loan or Credit Card payments that you are meeting (ie the contracted payments, or minimum payments), but you CAN pay back debts/expenses that are in arrears, in default, or on DMPs.

Stillsmiling

Hi RAS, this is interesting as neither the benefits office or CCCS have mentioned this. Could it be because the only benefit I'm entitled to is contribution based Job Seekers? Off to google.... :-)

Thanks!

Edited to add - googled it and I'm under the 16k limit so should be ok. :-)

paulmapp8306

Oh - other things that you can spend money on includes things like replacing old cars for newer ones (so reducing maintenance on the older one while allowing access to a wider jobsearch area, and affordable travell to inerviews). Obviously within reason - you cant replace your 15 year old Fiat with a brand new BMW, but you could replace a 12 year old Fiesta with a 4 year old model of the came kind of car.

paulmapp8306

@stillsmiling.

Deprivation of assets is only an issue with means tested benefits - so Housing benefit, Income based Jobseakers, Tax Credits etc. It has no bearing on Non tested benefits such as child benefit and Contributions based JSA.