DMP: I need to help my mother - how do I account for it??

BettyDebt

Hi everyone

I've previously posted on here before and had a great deal of help - Thank you!!

I do have another question. I have a debt management plan but I wanted to know if anyone knows how I would account for helping my mother in my budget. My mother lives in South Africa and really needs about £150 a month from me which I could do but I'd have to account for it in my DMP. She is a pensioner and unemployed. The cost of living is rising but her pension isn't I need to help her each month just so she can buy groceries etc.

How would I go about it with my debt management plan? Is there an allowance for helping family?

Thanks in advance!

mattp_3

Creditors will not normally allow such an expense, so you will need to be creative with your expenses by adding categories such as:

Increased travel costs;
Increased housekeeping costs;
Increased childcare costs (if applicable):

You will just have to add £10 here and there to things like water gas and electic to try and make up the difference.

or try to get overtime to pay the extra to your mother.

Fortunately, creditors rarely ask for proof of expenses in DMP's so it shouldn't cause you a problem, but if you try to put £150pm to your mother on the expenses, the creditors will tell you to pay them back first and ask for the money instead.

Hope this is of some help?

BettyDebt

Thanks! I just wonder what the creditors would do if I suddenly had £100 or so less a month to pay them.

I currently budget £800 a month for rent an expenses (council tax etc) I can take this right up to £950 as I am the only lease holder and there is no proof I have lodgers. £950 is the rent alone bills are excess.

If I decreased my payments to them what would the outcome be? I couldnt be forced into bankruptcy could I?

mattp_3

to be honest, the main implication is that it will take you much longer to get your debts cleared!!

but at the end of the day all they can do is issue a CCJ which isnt a major problem as your debt managemnt company will deal with the paperwork for you.

Creditors can apply to make you bankrupt, but there are significant costs to the creditor so it is extremely rare that they would go down this route. At present, you will be protected from bankruptcy as long as you continue to pay what you can afford each month and you respond to any county court summons.

No judge would allow a bankruptcy order to go through if you have the ability to make payments.

it is highly unlikely that any further action will be taken and if, as you mention, they cannot prove your expenses, you will be fine.