Available funds

A calculation of available funds will be made based on your income and expenses for the payment scheme of the debt adjustment. Your available funds are the amount of money you have at your disposal for repaying your debts each month during the debt adjustment.

Your net income, expenses approved for a debt adjustment and any foreseeable changes that are known to you when you apply for a debt adjustment will be taken into account when calculating your available funds. Getting a salary raise, retiring, a child starting studies or a child turning of legal age are examples of such changes.

Income

• Your net income is considered as your income. If your monthly income varies, your average annual income may be used.
• Unemployment allowance is included in your income for 21.5 days per month.
• Child allowance for single parents and social assistance are not included in your income.
• Your spouse’s income is considered in the calculation of available funds since it may impact the amount of your available funds. In the calculation of available income, the expenses of a cohabiting couple are considered to be divided in half and the expenses of a married couple are divided proportionally according to the net income of each spouse.

Expenses

• The amount of necessary living expenses is fixed. The size of your family affects the amount of necessary living expenses. Among others, food, clothing, a phone, internet access, hobbies, a car and personal insurance premiums are considered necessary living expenses.
• The Ministry of Justice annually confirms the amounts of necessary living expenses, which are the following as of 1 January 2024:
• EUR 707 for a debtor living alone or who is a single parent
• EUR 596 for a cohabiting or married debtor, or a debtor that lives with another adult
• EUR 456 per person for the two oldest children living with a debtor who are under 17 years old, and EUR 425 per person for the third oldest child and any subsequent younger children
• EUR 502 for a child 17 or more years old living with the debtor
• Other expenses that are considered include housing expenses, commuting expenses, healthcare expenses, child support payments, expenses incurred by non-custodial parents in maintaining contact to their child, and day care expenses.

Living expenses and other eligible expenses are deducted from your net income. The remaining amount is considered to be your available funds. The amount of your available funds is the amount that you will pay to your creditors each month during the payment scheme.

If the amount of your available funds is negative, i.e. no funds are available, a court can confirm a ‘zero scheme’ for you. With a zero scheme, you are not liable to make any monthly payments.
If, for example, your net income increases or you receive an inheritance during your payment scheme you may be subject to an additional payment obligation.

The financial and debt counsellors will assist you in calculating the amount of your available funds and the additional payment.