Income expenditure form/stitch up

JKC_3

Hi,

Please could someone tell me where I stand.

I have just completed the above and have been told by one particular creditor that I can afford X increase in repayments as the computers says (no) I should only spend X on rent, bills, housekeeping etc etc.

Can they do this ? This arrangement is valid for a year during which time probably all of my other creditors will want an increase.

I have proposed a 30% incease in payment but they are demanding 80%
thanks !

10past6

A good start would be to complete your SOA (Statement of Affairs) click here

JKC_3

Thanks 10past6 - I will use that SOA

I guess also what I would like to know is is there a legal threshold for expenditure and can 1 creditor effectively take all of the additional income that one may be required to pay to others. I have 9 in total

thanks again

fatbelly

This is where it's useful to involve a (fee-free) third party like CCCS or CAB. They're used to arguing these things.

There are guideline figures for food & housekeeping and clothing in National Debtline's Dealing with Debt booklet. There are also 'trigger figures' below which creditors should agree are reasonable. But none of this is legally binding. Neither is a debt management plan - it's just an agreement between two sides.

CCCS work out your payment to each creditor as a proportion of the contractual amount. CAB work it out on a pro-rata basis according to the amount of debt. I'm more comfortable with the latter as it gives a definite debt-free date.

DoWhatULove-LoveWhatUDo

Just Say No JKC. They can't take money that you don't have.

This would be easier to advise on with a SOA to look at.