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A good starting point for DMP questions
I have seen cases of DMP case studies where the person in debt in in 2 debt management plans with 2 companies, and their debts are split between the 2. But each DMP Company has different creditors on each side, and No creditors are duplicate

DMP company 1
Creditor 1
Creditor 2
Creditor 3

DMP company 2
Creditor 4
Creditor 5
Creditor 6
Creditor 7
Creditor 8

for example. But what is the point in this? what are the advantages it gains to use 2? Is it legal? and in which cases would you use this type of setup ?
Hi there flamingate

I have to say I have never come across this scenario before. There would simply be no advantage in using two separate debt management companies to run two separate DMPs on your behalf. I cannot see how it would be possible as each different plan would require 100% of the available disposable income is paid into the plan thus leaving nothing for the other. A DMP is not governed by the law and as such legally and theoretically speaking it is possible to have two separate DMPs running in this way but I cannot see any practical reason why someone would want to do this.
I would definitely not advise having two debt management plans running at the same time flamingate. In fact I am not even sure it would be possible to use two different debt management companies at the same time. I have never seen an example of it......

The issue as James has said is that to make a DMP work you need to show your creditors your income and expenditure budget. They will expect that all of your disposable income is made available to pay the creditors in the one plan.

Having said that it is possible to leave one or more debts out of a DMP and continue to pay these separately. This happens quite often if one of the debts you owe is tax to HMRC. This would have to be paid separately outside of your DMP agreement.