Can a debt management plan help with council debts?
Council debts are priority debts and would not be specifically included in the Debt Management Plan (DMP), however, the Debt Adviser should make provision in your income & expenditure (or statement-of-affairs) for both payment of on-going council payments and any arrears on these. If you have sufficient disposable income then a reasonable allowance will be made for a repayment arrangement to the Council and model letters are available to assist you present your circumstances following the visit or call with the debt adviser. If there is disposable income (e.g. over £80) remaining after allowing for any repayment arrangement for priority arrears then a Debt Management Plan may still be suitable to deal with any unsecured creditors you may have. As a guideline, you would have over £3,000 of unsecured debt with more than 2 creditors, otherwise self-management may be a better option with some initial debt advice. Local authorities can be aggressive at using bailiffs and other forms of enfo
