![\"Irish](\"http:\/\/www.nationaldebtrelief.ie\/articles\/wp-content\/uploads\/2013\/05\/debt-36.jpg\" "\\"allowable")
<\/a>Food is the first of the thirteen prescribed items of expenditure and a single adult living alone is allowed \u20ac247 per month but if he or she has children the allowance is \u20ac219 per month. The food allowance for two adults is \u20ac364 but if they have children it is just \u20ac279. The food allowance for children varies considerably depending on their ages but also on the number of adults in the household. Food allowances are higher for children where there is only one adult in the household. Tables are provided with an extensive range of scenarios covered.<\/p>\nThe same applies to the second prescribed item i.e. clothing which is \u20ac36 per month for an adult living alone, and \u20ac67 for a couple with different amounts allowed for children depending on their ages.<\/p>\n
The other eleven items of prescribed expenditure are dealt with similarly. For a single adult living alone they are: personal care \u20ac33; health \u20ac31; household goods \u20ac31; household services \u20ac29; communications \u20ac43; education \u20ac25; transport \u20ac136 if public and \u20ac240 if private i.e. a car; household energy \u20ac49 for electricity and \u20ac57 for heating; insurance \u20ac12 for home and \u20ac26 for car (if needed); savings and contingencies \u20ac43; social inclusion and participation \u20ac126. Again, where there are children in the household or two adults with or without children, tables of allowable expenditures are provided.<\/p>\n
The thirteen items for which detailed expenditure limits are prescribed are cumulatively described as \u2018set costs\u2019 and once you have worked out what these are in your particular circumstances you add on childcare costs (if applicable), housing costs (rent or mortgage) if any and the costs of any special circumstances that may apply to your household such as the costs associated with a dependent with a disability. From this total you must deduct the amount of child benefit which the household receives to arrive at the total allowable household expenditure for your household.<\/p>\n
While the process described above sounds complex, in fact it is quite simple and once you have determined the total expenditure allowed for your household you subtract this figure from the total net household income. The difference will be your disposable income i.e. the amount available to pay off your unsecured debts<\/a> such as your overdraft, credit cards, personal loans, credit union loans, overdue utility bills and store cards as well as any \u2018excluded debts\u2019. \u2018Excluded debts\u2019 are for example family maintenance payments under court order, court fines in respect of criminal offences, liabilities arising out of personal injury or wrongful death claims awarded by the court and liabilities arising from loans obtained by fraud. If disposable income or D.I. is insufficient to pay your unsecured debts and your \u2018excluded debts\u2019, if any, as they fall due, you are indeed insolvent<\/a> and you may be eligible to apply for one of the three new insolvency solutions now becoming available i.e. a Debt Relief Notice or DRN<\/a>, a Debt Settlement Arrangement or DSA<\/a> and a Personal Insolvency Notice or PIA<\/a>.<\/p>\n Written by Paddy Byrne 08\/05\/2013<\/p>\n","protected":false},"excerpt":{"rendered":" If you are insolvent and hope to avail of one of the three new debt solutions now becoming available under the Personal Insolvency Act 2012, there is considerable information on allowable personal expenditure now published by Insolvency Service of Ireland … Continue reading