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This is the place to ask questions if you are already in a DMP
By Leggie
#29125
Hello, I am facing possible redundancy at work and am on a DMP with Step Change and am thinking of putting in for VR - is this a good idea and would I have to pay my DMP off with my lump sum? Do they have the right to say pay us first out of the money I receive?
By Melissa S
#29132
Hi there Leggie and welcome to the forum :)

As a DMP is an informal agreement you are not obliged to use your redundancy money to pay to your creditors.

However, it is advisable to use this pay out to put towards your debts as a DMP can take a long time to clear as your debts are not usually written off and also does not offer protection from further action.

It may be possible to make early settlement offers to your creditors with your redundancy money to clear your debts quicker.

But no as far as I am aware your creditors are not able to ask for this money.

I am sure other posters here will add to my comments.

I hope this is of some help :)
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By Geraldine
#29152
Hello Leggie

If you do take voluntary redundancy you are not obligated in any way to hand over your redundancy payment to Step Change or your creditors. It is your choice what you do with the money. If you like you can keep the cash back and simply continue paying your monthly DMP payment to Step Change as normal. Alternatively you could use some of it to settle some of the debts you owe. It should be possible to settle individual debts for 50% of what you or less if you have been in your DMP for 6 months or more.
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By James Falla
#29240
Hi there Leggie

I agree with what the other posters have said. If you are made redundant while you are in a DMP and receive redundancy money then you can decide what to do with this money. However I would recommend using some of it to settle some or all of your DMP debts if you can.