Redundancy money on DMP

Juan-two-three

Hello,

I'm on a DMP and have just heard that I'm being made redundant soon. Will it be expected that any monies I receive will have to go towards the DMP? Am I allowed to use any of it to retrain or to pay towards College or some courses, or can I even keep some to be able to continue to pay my monthly bills and DMP payments?

thanks for any advice


John

moohound

Hi John, sorry to hear about the redundancy.

I think this can get quite complex, especially if you are going to claim benefits, I'm sure the smart people here will be along with detailed information.

Did you have any specific careers in mind regarding the retraining.

Who is your DMP provider? Have they given you any advice?

Juan-two-three

Hi moohound,

I'm with Stepchange & haven't spoken to them yet. My redundancy letter is on it's way to me, so I was going to wait until then.

I have no idea about what to do jobwise & training-wise......yet
I'm just worried about the future


John

fatbelly

You're not obliged to do anything, it's an informal arrangement, so do what is best for you.

What I wouldn't do is keep making dmp payments from your capital when your income does not justify those payments.

So if you're going to be going on to Jobseekers Allowance for a bit, then those payments should probably go to £1 per month token offers.

Without the numbers it's hard to say more.

Mort

fatbelly wrote: »

You're not obliged to do anything, it's an informal arrangement, so do what is best for you.

What I wouldn't do is keep making dmp payments from your capital when your income does not justify those payments.

So if you're going to be going on to Jobseekers Allowance for a bit, then those payments should probably go to £1 per month token offers.

Without the numbers it's hard to say more.

Sound advice, benefits will not start straight away. Put of plans on spending the redundancy until you know what your financial situation is.

Juan-two-three

Thanks for the advice,


but won't it be obvious that I've received some kind of redundancy payment when I tell StepC that my income has been reduced because I've been made redundant? and also if I actually receive enough to pay off the outstanding debt, wouldn't I be obliged to do so?
The way I see it, if I get some money but then use some or all of it for retraining and paying bills, they won't be happy that I've done this without even speaking to them.


thanks

John

moohound

If you dispose of all the capital by paying off debts, I believe you can be refused benefits, because you had money and paid it out on non -essential commitments.

I would not chuck all the money at the DMP until your position becomes clearer. If you find a suitable secure job quickly then consider paying it off.

The money is to compensate you for losing your job and security and you need to use it to put yourself in the best position, this might or might not be by paying off your debts.

How much is left to pay on the DMP?
Do you know what your redundancy payment might be?

Like fatbelly said without figures it is hard to determine the best action.

Speak to StepChange about it, but I wouldn't speak to the creditors, they might try to pressure you.

Juan-two-three

I understand moohound, thanks.


Ballpark figures would be c. 11k left on the DMP, with possibly getting 22-24k in a payout, to be confirmed. But 24k's not a lot with no job and no benefits entitlement, a son, a mortgage, monthly bills etc



John

Juan-two-three

Ok then, would there be a 'best action' for those figures I've mentioned, as Fatbelly says?

and wouldn't StepC try to get me to use any redundancy to pay off the DMP when I tell them?


Thanks

John

RAS

Hi

Google deprivation of capital

If you pay off the debts and then claim benefits, you will lose the benefits.

Use the money to pay the mortgage and normal household expenses. Check when you can claim JSA contribution based.

You could continue paying the DMP at the current rate for a while?

See how that goes and if you get back into work use the surplus towards the debt.

Benefits are affected if you have more than £6K in savings but you still get some help whilst you have less than £16K, so it will not be long before you are entitled to start claiming anyway.

Check www.turn2us.org.uk

Juan-two-three

Ok Ras, thanks. And thanks to everyone who's replied too.

John