Amount of disposable income expected for offer of repayment?

Mummy2Three

Morning all,

I am in the process of completing a N245 form to vary a court order which is repaid through my wages.

It is currently set at £100 per calender month although this month they took £160! I have spoken to CAPS who confirmed it should def still been no more than £100 and am awaiting payroll to contact me, dont know where i stand with the additional £60??

My income/expenditure is currently standing at £150 per month (before above judgement is paid)disposable income but with small children and a variable mortgage that could go up and has been over last few months.. I would like to offer as little as possible but at the same time do not want it to be declined..

Another reason for wanting to hold back a little is that I am yet to make arrangements with all my creditors so need some spare to make token payments..

Would it be unreasonable to offer £40 per month?

fatbelly

With those figures there is the possibility that the amount will be varied upwards

Yes £40 is unreasonable. There used to be 'determination of means' guidelines that the courts used and they would take between 50% and 75% of disposable income. Not sure whether those guidelines have changed.

The creditor with the ccj is ahead of the others when it comes to repayment. If you have £150 per month disposable income and an order to pay them £100 by attachment of earnings I would leave it at that and spread the other £50 across your other creditors until the main debt is paid off.

Or if you're if the mortgage increases go to token offers for the non-priorities.

A token payment is £1 per month so you are above token level (unless you have over 50 creditors)