A bit nervous and confused about setting up my DMP 22 May 2019 at 11:27PM edited 30 November -1 at 1:00AM in Debt-Free Wannabe 4 replies 787 views

craftbeer90

Hello all.

I have recently setup a DMP with Payplan, however, I feel a bit overwhelmed and overloaded with information.

Now, as far as my creditors are concerned, I have not contacted them about my situation, and my debts are increasing.

I recently, just got a DMP drafted up, and I'm looking at the figures and feel a bit baffled about them - I'm not a numbers guy, but my mental health is really suffering because I'm anxious that if it is wrong, and I send it to creditors that I am screwed.

I dunno whether to contact Payplan and have them recalculate my DMP.

Also, as far as setting the DMP up, I've setup a direct debit every month, where payplan takes a small chunk of my income after expenditure and stuff, for payments to my creditors.

I haven't signed the Letter of Authority as yet, because of the above situation.

I owe the Council arrears, and its at the Summons stage. I'm in a bit of a rush to get this DMP sent to them and payslips so I don't have to pay the full whack of my arrears (which is unaffordable).

Other issue, is my DMP was filed in solely for my income, but it does state partners income, and her transport costs, and phone bill. As it lists council tax arrears (joint liability).

I'm just a bit confused as to if this could be included in a DMP. I don't believe it is as it is an essential living expense.

Sorry, I'm just really stressed out and a lot of things to sort out. But I'm hoping once my DMP is sorted out properly it will take off the stress.

Would you advise me to get the DMP reviewed?

Anyone else have any experience of DMP?

sourcrates

You can’t put your council tax arrears into a debt management plan.
Council tax is a priority debt, and should be paid before your unsecured debts, which are all non priority.

Recovery action will continue a pace if you don’t agree separate terms with the council.

DMP payments are simple to calculate, just divide your disposable income between the number of creditors, this will give you a ballpark figure for each one, or sometimes they may use the pro-rata method, so your payment will be divided by value of each debt.

ferry

I left Payplan before my DMP was set up as they included my wifes financial sitaution im my I&E and I was not comfortable with that.
All my debt was im my name only

Suseka97

Hi there,

Just to reinforce the message from sourcrates - you cannot include your Council Tax arrears in your DMP and if you are at the summons stage, you need to get that sorted asap. If it goes to court they will add more costs onto the debt. Give them a call and explain what your financial situation is and tell them that you are in discussion with Payplan to help you with your financial situation.

Payplan should know that Ctax is a priority debt and once you have made an arrangement with the Council to clear those arrears, whatever that payment is - it then becomes part of your outgoings that need to be taken into account before they then determine how much is left to distribute to your other creditors.

As for your wife - you do not have to include her I&E in your DMP, but of course she would be jointly liable for the Ctax arrears (and presumably other household bills) - so she should be making some sort of contribution to your joint living expenses and that will affect the overall amount you have available to distribute to your creditors.

So, first thing - get the Ctax situation resolved and then go back to Payplan and rework the DMP details as necessary.

fatbelly

That's good advice above.

The council will agree to your total balance being paid by the end of the tax year. If that means there is nothing left for the non-priorities then they just get £1 per month as a short term token plan.

Payplan should be on top of this. They are normally OK.