RLE , Uneven Income and Lump Sums

Silvio Dante

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How does ISI deal with uneven income in bankruptcy?

Say I ran a B&B in Tramore and it was my sole income.
It could yield me a net income ranging from €400 in November to say €4,000 in July.
How would they treat such a scenario if my RLE was €2,000 pm?

Similarly, how do they treat a lump sum?

eg
If you have been under your RLE by say €300 pm year to date but receive a €2,000 performance bonus in work in May.
Again, can you average your year or would they take €1,700 in respect of May?
 
My experience of this is (while not exactly as you outline) is that my spike in income was taken, even though we were well under the RLE later in the year.
Having said that I have not asked for a retrospective deal on the amount.
 
My experience has been the same as Stuboy. Income was assessed on the average over 3 weeks, regardless of what was happening outside this time.
 
One practical way to deal with uneven income would be to incorporate the business i.e. form a limited company to carry on the business. If the business was incorporated, then you could budget for a regular monthly salary to be paid to avoid the peaks and the troughs.

If you are insolvent, any transfer of a business must be done on an arm's length basis i.e. independent valuation of the business transferred should ideally be carried out.

If you are currently bankrupt, you could still "sell" the business to a limited company and agree a monthly salary. however, the Official Assignee would need to agree to the sale of the business.


Jim Stafford
 
If the business was incorporated, then you could budget for a regular monthly salary to be paid to avoid the peaks and the troughs.
Seems an odd solution to me!! If the business is not generating a regular monthly cash-flow, how can the Company pay the OP a regular monthly income, or am I missing something?
 
Seems an odd solution to me!! If the business is not generating a regular monthly cash-flow, how can the Company pay the OP a regular monthly income, or am I missing something?
It works as long as you have a reasonable idea of how much will come in over the course of the year. Assume an annual income of 24000, with a peak of 4000 in July. You would just carry the surplus from a high income month over to the next month and you could pay a monthly salary of 2000.
 
ok but let's assume this: couple...both bankrupt, one on steady income, other gets a temp job that spikes the joint income over the RLE for a number of weeks only, and is then unemployed for a few months...should the spike in income be taken by the OA?
In my case the spike was permitted to be used as a rental deposit, but deemed to be a loan from the OA which I am repaying still, even though we were (and still are) well under the RLE's
 
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