Made redundant while on a Debt Management Plan

General_query

Hello.

I am on a Debt Management Plan with CCCS, and was recently told I am being made redundant at the end of November.

Does anyone know what happens when you are on a DMP please?

I have told CCCS and they just said let us know nearer the time which I wasn't really pleased with.

I am due to get 10 weeks pay in my lump sum, so what happens when I get this amount paid to me?

Can CCCS insist I up my payments, or can a creditor insist I use this money to substantially increase my monthly payment to them via CCCS?

Please advise ASAP.

Thank you.

P.S. I have posted this elsewhere, sorry I don't know which place it belongs, but this seems to be a fast moving section.

SusieT

Its going to depend on the individual circumstances, if you have another job to go to the payment may need changing, if you do not and go on jobseekers part of the lump sum will have to be used for living expenses as jobseekers will not be paid straight away if you have a payout. There are going to be other variables so until nearer the time you will not know if you have another job or not so they will not be able to tell you anything concrete until you know whats happening.
If you are bing paid 10 weeks then its likely that jobseekers would not be paid for 10 weeks so I imagine that part of it will be used for your normal payments and as soon as jobseekers is awarded you will be a payment of £1 a month to each creditor until you find another job and can start the DMP again.
Its a worrying tme but CCCS will not be able to do anything until they have more definite things to go on. I do hope you are able to get another job though as it is a worry when you are in that situation.

Deep_In_Debt

When I got made redundant whilst a few months into my dmp with CCCS back in 2008, I had a lump sum paid to me. I used some of that money to make full and final settlements on some of my smaller debts (I didn't tell the creditors how much money I had, just told them I had lost my job and wanted to make a F&F to them) and kept some money back to live on. Fortunately, I got another job within 7 weeks so it didn't affect my dmp in the end as I was still able to make a monthly payment to them from my redundancy.

However, if you are unable to get a job quickly, as above poster has said, you will probably just make token payments until you are back in work again. Keep CCCS informed and they should be able to inform your creditors too.

Good luck.

Deep_In_Debt

By the way, I didn't tell CCCS or the creditors how much of a lump sum I got, just told CCCS that I had received a lump sum, wanted to keep some of the money to live on and make F&F on some smaller debts. They were fine with that.

Also, I didn't tell the creditors about my lump sum either otherwise they would have wanted all the money so I just told them I had lost my job and wanted to make a F&F.

theoretica

I would suggest you offer lump sums once you have a new job rather than at the start of a job hunting time.

General_query

SusieT wrote: »

Its going to depend on the individual circumstances, if you have another job to go to the payment may need changing, if you do not and go on jobseekers part of the lump sum will have to be used for living expenses as jobseekers will not be paid straight away if you have a payout. There are going to be other variables so until nearer the time you will not know if you have another job or not so they will not be able to tell you anything concrete until you know whats happening.
If you are bing paid 10 weeks then its likely that jobseekers would not be paid for 10 weeks so I imagine that part of it will be used for your normal payments and as soon as jobseekers is awarded you will be a payment of £1 a month to each creditor until you find another job and can start the DMP again.
Its a worrying tme but CCCS will not be able to do anything until they have more definite things to go on. I do hope you are able to get another job though as it is a worry when you are in that situation.

Thanks for the reply. I don't have another job lined up (yet), but I have been told I can sign on and get JSA, and this small lump sum isn't taxable.

I was just surprised CCCS didn't say right, we'll offer your creditors £1 a month from now until you get a new job, but I guess as I am still working, they can still get £100 a month off me.

General_query

Deep_In_Debt wrote: »

When I got made redundant whilst a few months into my dmp with CCCS back in 2008, I had a lump sum paid to me. I used some of that money to make full and final settlements on some of my smaller debts (I didn't tell the creditors how much money I had, just told them I had lost my job and wanted to make a F&F to them) and kept some money back to live on. Fortunately, I got another job within 7 weeks so it didn't affect my dmp in the end as I was still able to make a monthly payment to them from my redundancy.

However, if you are unable to get a job quickly, as above poster has said, you will probably just make token payments until you are back in work again. Keep CCCS informed and they should be able to inform your creditors too.

Good luck.

Thanks too. I haven't told CCCS what my lump sum is, and it's definitely not big enough to make any F&Fs to my creditors. In fact, it's only like a tenth of what I owe in debts....

I am just worried "they" will see I have extra available money and will try and take it towards the debts

General_query

theoretica wrote: »

I would suggest you offer lump sums once you have a new job rather than at the start of a job hunting time.

As above, not big enough to make any F&Fs.

However if I get more than I am expecting, is this the best thing to do? How do you approach them? Do you tell CCCS?

Rochdale_Guy

Weird.... same situation as me.

I really need to know what happens to my lump sum.

Anyone else in this situation have any answers please?

heartbreak_star

Why don't either of you call CCCS and be honest guys...they are there to help you not take all your money. Remember?

RG, you still doing Insanity?

HBS x

Rochdale_Guy

heartbreak_star wrote: »

Why don't either of you call CCCS and be honest guys...they are there to help you not take all your money. Remember?

RG, you still doing Insanity?

HBS x

Check the Insanity thread..... :eek: