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This is the place to ask questions if you are already in a DMP
By Zack69
#28930
What happens if I enter into a DMP whilst living alone and then meet a new partner and we share the bills and mortgage etc? In addition at a later date if my finances improve with it being a flexible information agreement are you legally obliged to tell them?
By Carla
#28936
Hello Zack69 and welcome :)

The first thing I would say is that if you have a change of circumstances while you are in a DMP you do not actually have to tell your DMP company or your creditors. So the best thing to do is wait a couple of months to see how the change actually affects your finances.

Of course if the change means that your disposable income goes down and you need to reduce your DMP payments then you will have to tell your creditors. In the same way if your DI goes up then it is best to increase your monthly DMP payments because ultimately this will help pay your DMP faster.
By Melissa S
#29031
Hi Zack69,

As Carla has rightly said you are not legally bound to inform your creditors of a change in circumstances in a DMP as it is an informal agreement.

If you do move in with your partner and find that you start to struggle to keep up your DMP payments then you are best to inform your creditors straight away and see if you can reduce your monthly payments.

If you find that you are unable to continue your DMP then you could consider changing to another debt solution such as an IVA depending on our circumstances. You can stop your DMP at any time as it is not legally binding. Obviously if your circumstances do improve then paying this towards your Debt is really the best thing to do to reduce the length of your DMP.
#29038
Hello Zack69

If you start sharing the bills with a partner this will normally mean that your living expenses will reduce and so you will have more disposable income available to pay into your DMP.

Having said that Carla and Melissa are right, because a DMP is an informal agreement you are not legally bound to inform your creditors of this change.

If your disposable income goes up while you are in a DMP you have 2 options. You can either increase the amount that you pay into your DMP and so start to repay your debts faster. Alternatively you can save the extra money you are getting. This can then be used in case of financial emergencies and eventually you might have sufficient to offer a lump sum settlement to one or more of your creditors.