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Accountant in Bankruptcy

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Publication - Notes for Guidance

Notes for Guidance - Common Financial Tool

First published
30 November 2016
Last updated
27 August 2024 - see all updates
Topics
Bankruptcy, Debt Arrangement Scheme, Protected Trust Deeds

Notes for Guidance explaining the information and evidence requirements to support debt solution applications

Supporting documents

11. Contingency provision

11.1 Debtors will be allowed to have expenditure of up to 10% of the surplus income calculated, allocated as a contingency allowance, or saving provision. A maximum contingency allowance of £20 per month is permissible for each assessment.

11.2 For example, a CFT assessment which results in surplus income of £100, with no contingency provision, can be recalculated with up to £10 included in the other expenditure category, resulting in a revised surplus of £90.

11.3 Money advisers/trustees should consider including the contingency allowance in every case, as it is in all parties’ interest that the debtor has funds available to meet the cost of unexpected future liabilities.

11.4 Any breach of the relevant trigger figure arising from the inclusion of this contingency element will be considered acceptable unless any of the other expenditure is deemed unreasonable.

First published
Wednesday, 30 November 2016
Last updated
Tuesday, 27 August 2024 -
All updates

  1. Following Ofgem announcement on energy price cap, an amendment has been made to essential expenditure section 6.8

  2. Change to evidence requirements - expenditure for gas and electricity, without the need to provide evidence has been amended to £130 per month from July 2024.

  3. AiB now facilitates the CFS and previous references to MAT have now been changed to AiB

  4. Amended trigger figure, energy cap and removal of COL

  5. Change to evidence requirements - the expenditure for gas and electricity, without the need to provide evidence has been amended to £140 per month combined.

  6. Amendments made to payment amounts and dates in Appendix B - UK Government Cost of Living Support - Help with Energy Bills

  7. Pet changes moved from section 10 housekeeping to section 11 other expenditure

  8. Amendment to reflect the energy price cap set to an annual level of £1,928 as of 1 January 2024

  9. Originally published

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