Help DMP not DRO or IVA-should this be in benefits?

Mar59

Thanks

Are there acceptable limits anywhere for all the different costs like max allowed etc

sourcrates

Budget limits only apply to statutory insolvency debt solutions such as DRO/IVA and Bankruptcy.

There is no budget limit on a debt management plan, as its an informal solution, and your payments are decided by your available disposable income, its flexible, as everyone will be different, so what you spend, is what you spend, as long as its not excessive without good reason.

Its your budget, no one else has any say over it.

Mar59

I have a small private pension 166 a month this is deducted £ for £ from my benefits

So I receive

UC

LCWRA

ESA -deducted £ for £ from UC

Pension-deducted £ for £ from UC

Pip- put line in for total disabled expenses to net it off?

sourcrates

Yes, PIP is not for debt repayments, one word of advice, always make the budget balance in your favour, not your creditors.

It will not be validated or checked, and in your case, you are looking to get write offs, so your budget should show a minus deficit, if possible, in order to back that up.

For example, say your income is £1070 a month, your outgoings should total around £1050, so only a £20 disposable income figure is available.

Remember these are debt purchasers looking to make a profit that you are dealing with, so you have to play hardball to get what you want, if your first salvo shows a large disposable income figure, they will want payment off you, and you can forget right offs, it is all a game, and you must learn how to play it to get what you want, its very important to know what info to share with them, and what you should never share with them.

It is also imperative to stick to your agreed strategy, and not waver, only by pushing your position can you obtain what you want.

ManyWays

Or National Debtline's My Money Steps

https://nationaldebtline.org/get-help/my-money-steps/

NB any of these online forms just reformat what you tell them, so you have to think what is acceptable. You may be panning to spend very little on clothes and entertainment to build up a big emergency fund. But for a creditor it's better to put normal amounts in for clothes and entertainment and a low amount for an emergency fund.

fatbelly

Try this one

https://nedcab.cabmoney.org.uk/quickfs.asp

sourcrates

You can use these SOA calculators to sort out your own budget, for your own needs, but when it comes to creditors you should not spend more than 30 seconds on it.

For example:

Dear creditor,

My income is £1270

My expenditure is £1120

My disposable income is £150, and I have 5 creditors, each will receive £30 on a monthly basis.

regards

That`s it, it requires no more thought than that.

fatbelly

II agree that the danger is telling them more than you need to.

For example, mortgage cost tells them that you are a homeowner. Salary tells them that you are employed. Putting a large figure for anything just invites questions.

But it is good to at least give the impression that you are being open with them. If you are in rented accom with benefit-only income, there is not much they can do with that

Mar59

https://forums.moneysavingexpert.com/discussion/comment/81923712#Comment_81923712

there’s nowhere to show them that my esa and my pension are deducted from my Uc just to add it in

fatbelly

You put the actual amount of UC that you receive, after deductions.