Key Post Summary table of Reasonable Living Expense from the Insolvency Service

Discussion in 'Personal Insolvency, bankruptcy, etc' started by Brendan Burgess, Jun 7, 2013.

  1. Brendan Burgess

    Brendan Burgess Founder

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    Reasonable Living Expenses Updated June 2013

    Summary of Schedule 1 - Page 36

    Car necessary for work

    ||Set costs|Infant|Pre-school|Primary |secondary|3rd child|4th child

    1 adult, no kids|Table 2|€1,045
    2 adults, no kids|Table 8|€1,473

    1 adult, kids|Table 4|€1,091|€242|€66|€207|€420|€11|€43

    2 adults, kids|Table 6|€1,408|€242|€66|€207|€420|€11|€43

    No car
    ||Set costs|Infant|Pre-school|Primary |secondary|3rd child|4th child
    1 adult, no kids|Table 1|€ 933
    2 adults, no kids|Table 7|€1,496
    I adult, kids|Table 3 |€ 940|€242|€79|€219|€432|€11|0

    2 adults, kids|Table 5|€1,360|€242|€79|€219|€432|€11|0

    If you have a college-going child financially dependent on you, you can claim under Special Circumstances


     
  2. Brendan Burgess

    Brendan Burgess Founder

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    Presumably this means that if one parent is not working, there would be no childcare costs?
     
  3. Brendan Burgess

    Brendan Burgess Founder

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    Example

    John and Mary have two children at Primary School and a net income of €2,000 per month.
    They need a car for work.

    Their reasonable living expenses would be €1,743 per month before debt servicing.

    Set costs| €1,408
    2 children @ €165|€ 330
    Total|€1,743
    So they can afford €257towards their rent or paying their debts.
     
  4. Brendan Burgess

    Brendan Burgess Founder

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    What about Child Benefit?

    When doing the calculations, ignore child benefit as income and use the figure in the table as the net cost

    Take a pre-school child.

    Total cost per month| €372
    Less child benefit| €130
    net cost|€242
    From Page 34
     
  5. Brendan Burgess

    Brendan Burgess Founder

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    Special circumstances:

    The Act contains a requirement to take account of the differing needs of persons, having regard to matters such as their age, health and whether they have a physical, sensory, mental health or intellectual disability. Given the number of possible variables, and the individual nature of physical and mental health conditions and disabilities, the ISI believes this aspect is best addressed through making allowance in these guidelines for a debtor to specify reasonable costs which arise as a consequence of ill-health or disability

    The category of special circumstances may also be used where a debtor has persons other than his or her minor children financially dependent on him or her, such as where the debtor is contributing financially to the care of an adult dependent such as, for example, an elderly relative or a college-going child.
     
  6. Brendan Burgess

    Brendan Burgess Founder

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    Left blank
     
  7. Brendan Burgess

    Brendan Burgess Founder

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    This thread is for a summary of how to use these guidelines

    Please don't discuss any other issue in this thread.

    Brendan
     
  8. Brendan Burgess

    Brendan Burgess Founder

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  9. rtc

    rtc New Member

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    We are considering Insolvency but the reasonable living expenses are impossible for us ,is this a common problem and if so are the policy makers aware ?
     
  10. Jim Stafford

    Jim Stafford Frequent Poster

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    It is a common problem. When the regime was first introduced in 2013, up to 70% of the people that we met were living beneath the RLE's. Accordingly, it was impossible for those people to do five year payment plans, as they had no surplus income to pay to creditors. As I have mentioned before on this forum, "lump sum" PIA's/DSA's can be a good way to go. A "lump sum" might involve the sale of some unencumbered assets, or might involve family members contributing a lump of cash.


    Jim Stafford
     
  11. 44brendan

    44brendan Frequent Poster

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    All banks are now using these guidelines in discussing acceptable alternative repayment agreements with clients. From our own perspective the figures are not necessarily "set in stone" and some exceptions are allowed provided that there is an acceptable rationale for them. However, there is now more pressure coming on to limit the exceptions and to decline proposals that do not comply with the spending guidelines. I would recommend that anyone who is applying to a bank for a reduction in repayments should assess the guidelines for their family circumstances and how they can fit their expenditure into the appropriate budget.
     
  12. DebtCert

    DebtCert Frequent Poster

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    I'm not clear on what you mean. How are they impossible? Do you think they are too low to live on or that they are too high meaning you have nothing left over to make payments with?
     
  13. jessicadiaz

    jessicadiaz New Member

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    Child benefit payments are, under section 26(5)(b)(ii) of the Act, not to be included in assessing income for the purposes of determining eligibility for a DRN. On the basis that child benefit payments are intended to be spent on a child, child benefit has been deducted from the reasonable living expenses of a child. To do otherwise would effectively mean double counting child benefit in the ISI model.




    Motorbike Driving Gloves
     
  14. Jim Stafford

    Jim Stafford Frequent Poster

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  15. DebtCert

    DebtCert Frequent Poster

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    Stuboy likes this.
  16. ivannomonet

    ivannomonet Frequent Poster

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    I note none of the examples on the ISI website covers an individual who is separated or divorced, thus living alone and paying rent for himself, but supporting wife and children by means of maintenance, mortgage contribution to family home in which wife and children still reside and various other bills/expenses related to family.

    Any idea what the procedure would be here?
     
  17. ivannomonet

    ivannomonet Frequent Poster

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    Anyone?
     
  18. Stuboy

    Stuboy Frequent Poster

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    you probably need to direct that query directly to the ISI
     
  19. Outsider

    Outsider Registered User

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    Brendan
    In a situation where both parents work and each needs a car.
    One party has a daily round trip of over 200 miles.
    Will that be ordinarily be accepted as a RLE?
     
  20. 44brendan

    44brendan Frequent Poster

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    Not necessarily ordinarily Outsider. However, some banks are better than others in allowing leeway where there is a good case to be made for it. Make your case when submitting your proposal and hopefully it will be accepted. If not you have the option of appealing a decline.