How much disposable income should you be entitled to after entering mediation ?

Rabidlamb

This will be divisive debate, very divisive, I make no apologies.
If your bank agrees to reduced payments & you fill out the means test forms how much discretionary income is it be fair to leave people with.
Some will contend zero is the correct figure others will say creating prisoners will lead to full default.
Also what luxuries should people be allowed keep, Sky Sports, DSL Broadband, Golf membership etc.

As every situation is different I'll define the test subjects as a young couple in their early 30's, one kid pre-school, single income €30k gross (€2283 p/m net).
A €300k 35 year mortgage @ 4.75% = €1466 before TRS.

I have said here before that if I was in that hopeless scenario I'm sipping brandy living rent free for 2/3 years before I get evicted.

Nody

Social wellfare payment + 10% (but not accounting for the savings from a medicard etc.) as it is an agreement between two parties.

Rabidlamb

Nody wrote: »

Social wellfare payment + 10% (but not accounting for the savings from a medicard etc.) as it is an agreement between two parties.

It's a fair starting point those on SW still have to pay their bills while those in mediation will have it taken off before the final figure.

seamus

Really depends on what's "discretionary income" tbh. There are always going to one-off necessity costs which can't be planned for in advance. So if you reduce someone's discretionary income to nil, and suddenly their child's bed collapses, you've left them with no money with which to replace it. Then they have to start applying for social grants, or exceptional income or whatever and it becomes morale draining.

I would also say there's an argument to keep people happy with the agreement, even if that only extends to a couple of pints every other Friday night. If you completely lock down their income such that they have no discretionary spend, then it won't be long before they decide to jack it all in altogether, or start cheating the system and getting paid on the side. But if the deal is equitable and still allows for them to enjoy life to a certain extent, then they're more co-operative with the agreement.

I do think Nody gives a good example of a starting point. However, I think most people at the moment would be more than delighted to have social welfare + 10% left over at the end of each week, so it may actually be a little generous.

meditraitor

No more than €100 per week per person.........

JimiTime

Rabidlamb wrote: »

This will be divisive debate, very divisive, I make no apologies.
If your bank agrees to reduced payments & you fill out the means test forms how much discretionary income is it be fair to leave people with.
Some will contend zero is the correct figure others will say creating prisoners will lead to full default.
Also what luxuries should people be allowed keep, Sky Sports, DSL Broadband, Golf membership etc.

As every situation is different I'll define the test subjects as a young couple in their early 30's, one kid pre-school, single income €30k gross (€2283 p/m net).
A €300k 35 year mortgage @ 4.75% = €1466 before TRS.

I have said here before that if I was in that hopeless scenario I'm sipping brandy living rent free for 2/3 years before I get evicted.

Are you talking about after food and leccy/gas/phone bills etc are deducted?

Surly that a bit of pointless question, everybody's circumstance are different and the mediators I would imagine are trained to do the job and take a detached impersonal view, once all parties have agreed.
The amount of money the family are left with would be there's to spend how they want, or are you trying to say the mediators should diktat how the family spend every single penny they have right down to what sort of food they buy?

Rabidlamb

JimiTime wrote: »

Are you talking about after food and leccy/gas/phone bills etc are deducted?

Yep, just disposable income left, for beer, fags, cinema, takeaways, hookers etc.

COYW

Rabidlamb wrote: »

It's a fair starting point those on SW still have to pay their bills while those in mediation will have it taken off before the final figure.

Those in mediation have more bills to pay than those on SW.

Sleepy

Those on welfare have food, transport etc. to pay for out of their welfare. The OP specifically mentions disposable income. As someone who's in a relatively "good" job, I'd be (as seamus suggested) delighted with €200 a week in disposable income. The €372.40 a week I'd get in welfare as someone with a dependent adult and two children would be fvcking brilliant tbh!

I'd be thinking around €50 to €75 a week of disposable income would be "fair".

Liam Byrne

Sleepy wrote: »

Those on welfare have food, transport etc. to pay for out of their welfare. The OP specifically mentions disposable income. As someone who's in a relatively "good" job, I'd be (as seamus suggested) delighted with €200 a week in disposable income. The €372.40 a week I'd get in welfare as someone with a dependent adult and two children would be fvcking brilliant tbh!

I'd be thinking around €50 to €75 a week of disposable income would be "fair".

That'd down to terminology - what most people would view as "disposable income" is actually referred to as "discretionary income" - money that you don't "have to" spend (as distinct from money that you don't have)