Resonable living expenses

S

Sadee13

Registered User
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Hi i am just trying to calculate living expenses for 2 adults & 2 children with a car. Baby no 2 is due next year. We pay no childcare as husband is unemployed.

Is this calculation correct?

Set costs - €1892.02
mortgage - €815.00
Reasonable living expenses - €2702.02

Net income including husbands social welfare payment - €2700.00
less reasonable living expenses - €2707.02
Remaining - minus €7.02
 
I think you need to complete a "Money Makeover" thread to breakdown your set costs of €1892.02. Otherwise you're just asking a maths question...
 
€1,892 would be correct for a two adult household with a car and two infants i.e. children under two years old.
 
Yes Brendan, it was the summary of reasonable living expenses i was working off.
I understand i can't use this for the baby that is due next year but just querying.
It will be 2 infants as my son is only 1.5years at the moment.
 
I don't agree with the way that the Insolvency Service works this out.

I think that the right layout should be

Income|€2,700
Less set costs|€1,892
Available to pay creditors|€808

So, in your case, your mortgage could be rescheduled to reduce the payments to interest only, so as to have more to pay the unsecured creditors.

The Insolvency Service seeks to take a full repayment of the mortgage as a given.
 
The reasonable living expenses do not take the mortgage payment as a given and present no barrier to restructuring a mortgage. When one reads the document in full that should be clear. Bear in mind too that the reasonable living expenses also apply in the case of a DRN where there will be no mortgage. It's also worth noting that the income side of the equation does not fall within guidelines on expenses but rather is picked up elsewhere.
 
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