Mortgage payments reduced
Published 26/11/2013 | 21:42
IN their early 50s, Ann and Barry (names changed to protect identity) live in Cork and are married with children who are grown up and no longer dependents.
Barry is employed as an office assistant manager earning €2,382 a month after tax. Ann is a dental assistant earning €1,560 net a month.
They have incurred some health expenses towards one of their grown-up children's health problems which has contributed to their financial difficulties.
They owe €275,000 on their family home mortgage and have unsecured debts of €44,500, credit card bills of €7,500, another bank loan of €14,500, and a credit union loan of €15,000.
The total unsecured debt comes to €81,500.
Under a deal struck between Grant Thornton Debt Solutions and the banks, the couple is allowed set costs of €1,473 a month and vouched medical expenses of €226 per month.
They will have their mortgage repayment reduced to €1,173 a month, as this is the rental cost for a standard property in the area.
The total living expenses allowed amount to €2,872 per month.
This will leave a total of €1,010 for them to service the arrangement.
A proposal is made to standardise the monthly repayments on the family home at €1,173 per month for the five years of the arrangement, which will allow them to pay €1,010 per month (€61,000) to the unsecured creditors for the course of the arrangement.
This means the unsecured creditors will get 74pc of what they are owed.
Irish IndependentFollow @Indobusiness