# Reasonable living expenses in bankruptcy



## OUTONALIMB (15 May 2014)

Are there any official guidelins on reasonable living expenses in UK bankruptcy


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## Matthew Moore (16 May 2014)

OUTONALIMB said:


> Are there any official guidelins on reasonable living expences in UK bankruptcy



There are no set guidelines like in Ireland. If you have an expense you must justify it. I worked it out, needs like for like, for a couple with 2 kids Ireland v England and posted here somewhere. If I remember correctly the allowances were about 20% less in England. 

Have a look here for some info: https://nedcab.cabmoney.org.uk/bankruptcypoc.asp

NB- Click on the "i" beside each heading for a detailed description and approx amount


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## OUTONALIMB (17 May 2014)

Thanks Pat, a great help


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## Steve Thatcher (19 May 2014)

Your expenditure is what it is for Gas/elec, water, housing, car expenses, insurances. They need to be reasonable for your circumstances. I have never had anyone told off fopr over spending.

Then you get allowances. Say £250 per person for food etc per month. So a family of five has £1250 for that.
£40 each for clothing
I allow £10 per head for hair cuts
£10 per person for contingency.

There are lots of things to add.

the point for me is when I advise people on the move I explain that the income and expenditure match so that an income payments order is avoided. This process starts before people leave and continues here so that when we get to court there are no issues with the income and expenditure. Then once the year is past for bankruptcy that is it.

Contrast that with ireland. You need to watch your expenditure for three years and then there is still the possibility of a further 5 years living on the bread line after that.

Steve Thatcher
www.stevethatcher.ie


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