Fluctuating Income
I just met someone whose income fluctuates from summer to winter. In the summer, there is a large amount of income, but in the winter it drops to about half the amount.
The calculation of surplus income (see the www.hoyes.com website for information on surplus income)means the payments are high in the summer but lower in the winter.
Reviewing the situation, it made sense to offer the creditors a proposal. This means the payments will be equal throughout the year, but the debtor will always know how much has to be paid. Another option in the proposal would have been to make the payments higher during the summer months when there was more income and lower during the winter months.
Proposals can be made with any terms that make it easier for the debtor to cope with fluctuating income as long as there is enough funds available to cover the household expenses. If the amounts are fair and reasonable, hopefully the creditors will accept the payments as presented.
If you are experiencing fluctuating income and need to work out a plan to repay your creditors, please contact our London office at 519-435-1500.
