How to manage my DMP after losing my job?

Mondy

I am looking for some advice on my current financial situation.

Just over a month ago I voluntarily left a full time position of work due to certain circumstances. The problem is that I am currently contracted into a debt management plan with Trust Deed Scotland aka Harper McDermott. I have been paying into the plan since December 2020 at a monthly rate of £152. I am now out of work and do not earn a penny so I had a few questions:

1. Should I let the Debt Management company know?
2. Would they be happy still receiving the monthly payment? (Its possible family could help with this)
3. What fall back measures are in place for someone in a debt plan in my situation?
4. If I cannot pay the monthly amount am I due to pay the debt back in full?
5. What is the worst case scenario if I do not have a job for the foreseeable future?

I am also concerned that I am not paying my monthly NI and therefore not contributing to my pension. My understanding is that I am not entitled to Universal Credit as I voluntarily resigned from my job. What is the best advice on what to do about this situation?

GeordieGeorge

Why on Earth would you leave your job when you are in a DMP?

Mondy

GeordieGeorge said:

Why on Earth would you leave your job when you are in a DMP?

Certain circumstances that were out of my control unfortunately.

GeordieGeorge

Assuming it’s an informal agreement with your creditors you can just write to them, explain that your circumstances have changed, and set out your proposal for what you can now afford.

Mondy

GeordieGeorge said:

Assuming it’s an informal agreement with your creditors you can just write to them, explain that your circumstances have changed, and set out your proposal for what you can now afford.

And what if right at this moment in time I cannot afford a penny as I stated as I am currently not working. Is there some sort of holiday plan available?

GeordieGeorge

Mondy said:

GeordieGeorge said:

Assuming it’s an informal agreement with your creditors you can just write to them, explain that your circumstances have changed, and set out your proposal for what you can now afford.

And what if right at this moment in time I cannot afford a penny as I stated as I am currently not working. Is there some sort of holiday plan available?

Then write to them and tell them that you can’t afford anything. You did state at the top though that your family may be able to help.
If you are able to keep paying something it reduces the probability that they’ll decide to take court action to recover the balance.

BlueJ94

@Mondy best advice would be to speak to them, tell them your situation etc! Good Luck.

*edit* I think it's 6 months wait to apply for UC after leaving a job voluntary. Might be different as this was what it used to be 5 years ago

sourcrates

Stop paying a fee charging debt management company to run your DMP, that`s the first step.

You are not contracted into anything, a DMP is an informal arrangement you can withdraw from at any time.

No income equals  no repayments, cancel your arrangement with robbers.com, write and inform your creditors you are currently not working, you do not have to go into detail.

For someone not working, or on income related benefits, little or no payment would be required on unsecured non priority debts.

p00hsticks

jadewest94 said:

@Mondy best advice would be to speak to them, tell them your situation etc! Good Luck.

*edit* I think it's 6 months wait to apply for UC after leaving a job voluntary. Might be different as this was what it used to be 5 years ago

It would be advisable to try to put in a claim straight away though - we don't know the precise circumstances which led to the OP leaving. As far as i'm aware there is no downside to claiming straight away - at worst they can refuse it.

BlueJ94

p00hsticks said:

jadewest94 said:

@Mondy best advice would be to speak to them, tell them your situation etc! Good Luck.

*edit* I think it's 6 months wait to apply for UC after leaving a job voluntary. Might be different as this was what it used to be 5 years ago

It would be advisable to try to put in a claim straight away though - we don't know the precise circumstances which led to the OP leaving. As far as i'm aware there is no downside to claiming straight away - at worst they can refuse it.

Yes totally agree!