What about this... Redundancy, DMP and DRO question?

Monkeyballs

Hi,

I'm currently on a DMP with Step Change.

I am also on long term sick leave and my job is at risk, my boss has told me that I'll likely just lose my job and I'll need to claim benefits but that there is also the slim possibility of either a discretionary extended sick benefit (which would allow me to continue with my DMP) or even a redundancy package...

My question is this;

If I was to get redundancy would I be able to use this to give myself a monthly allowance and continue with my DMP (same current or slightly reduced monthly payments) in the hope I get another job? If it ran out before I was "healed" or got a job would this be a problem if I went the DRO route? Would the OR be likely to object to me using my redundancy to live off instead of going the DRO route?

Basically I don't want to shoot myself in the foot LOL.

Thanks in advance

MB

longtermplanner

I can't see why you would want to carry on with a DMP. Better to stop making payments to that whilst you try to get another job.

If you get another job quickly, then you may be able to use the redundancy money to make some full&final settlements on some of your debts.

If you don't get another job quickly, you need that money to live on. If you have a mortgage, the top priority is to keep paying that until you becaome eligible for Help with mortgage interest, usually after 13 weeks see https://www.gov.uk/support-for-mortgage-interest/what-youll-get

If you end up with a DRO, the OR will not mind if you have used the redundancy money for sensible living costs. That doesn't include a bumper Xmas or winter holiday in the Bahamas obviously!

Monkeyballs

Hi LTP,

Thanks for the reply.

I don't have a mortgage so that's one thing I don't have to worry about...

I went through bankruptcy about 10 years ago (and never learned my lesson DOH! but that's changed this time around) and would rather just pay my way not doing it will just feel like a failure but I guess, depending on what happens I may just have to bite the bullet!

I've also spoken to Step Change to get their views and it was basically the same as yours (just to make severely reduced DMP payments which might help get very low F&F's at a later date). Now I just need the next month or so to fly by so I can stop worrying about what might be and just deal with it as it comes!

Thanks again,

MB