Q – I am in the process of getting an insolvency arrangement to sort out my debt problems after many years of negotiation. I have been told that as part of the arrangement I am entitled to reasonable living expenses. Will that be enough money to support by family of 4 children ? Paul – Mullingar Co West Meath
A – Firstly, well done Paul for taking control of your situation and reaching out for help. It sounds like you have already made contact with a Personal Insolvency Practitioner (PIP) and he or she has advised you of your options and also told you that you are entitled to reasonable living expenses while you address your debt problems. The reasonable standard of living allows for expenses such as food, clothing, health, household goods and services, communications, socialising, education, transport, household energy, childcare, insurance and modest allowances for savings and contingencies. It even allows for money to be set aside for social events and outings – this will allow you and your family to remain active in your community and still have some fun. Also, you will not be told how you should spend your allocated reasonable living expenses, so you are in complete control of your spending. For more information visit www.backontrack.ie where in just a few clicks you can calculate your family’s monthly reasonable living expenses. The figure is often higher than the amount people in debt live on before seeking an insolvency solution. Best of luck.