DMP and inheritance

kaymarie35

Hi, I am probably on the wrong board but hoping for some advice.  
I have been in a DMP since April 2019 and my current outstanding debt balance is £14683.  I make payments of £141 per month which works well for me.  My current end date of the DMP is Feb 2030 which I would like to reduce. 
Sadly my mum passed away last month and I am due to inherit some money.  I do not yet fully know how much it will be, I am working on the assumption that it would be enough to pay off what I currently owe.  
I have read somewhere that if a person was to come into some inheritance or a win fall they can make a partial settlement offer and see whether their creditors would agree. But I also read that this would extend the 6 year default on my credit file from the point of settlement. So it would extend my default by 2 years. Is this correct? I do not want to partially settle if I then have to start the 6 year default again, which at the moment will drop off my credit report in 4 years time.     
I by no means wish to shirk my repayments but ideally I would rather try and save as much of the money as possible in an account for my son when he's older (single parent, he's 6), as that is what my mum would have wanted so I am just trying to look at what my options are. 
At the moment I think I plan to pay off the £14683 with the inheritance but then set up a direct debit to save £141 from my wages into a savings account which would have ordinarily gone to the DMP. This will then go to my son.  Does this sound the best course of action? 
I have completely turned around my spending ways and habits.  I am so used to not having money that I'm struggling with having options.  I just don't know whether I am thinking clearly or making sensible choices. 
Thanks in advance   
     

MovingForwards

You can make partial settlement offers while in a DMP, it doesn't matter where the money comes from. Start low and don't do anything until the money is in your account.

If you've got defaults on your credit files, they fall off 6 years after being entered, regardless of whether they are settled or not. It AP / AR markers which stay for 6 years after settlement.

It's nice you want to save for your son, but you also need money for yourself. Look at JISA's and other kids savings accounts (look on the savings board), but do save more for your own needs too. It's one things turning your life around, it's another staying on track.

This isn't the right board, let's see if @sourcrates @Browntoa can move it to the debt free wannabe boards where it's more suitable.