Debt counseling in The Netherlands
This presentation is the property of its rightful owner.
Sponsored Links
1 / 20

Debt counseling in The Netherlands PowerPoint PPT Presentation


  • 73 Views
  • Uploaded on
  • Presentation posted in: General

Debt counseling in The Netherlands. Albert Luten November 26, 2010. National Institute for Budgetinformation. Consumers information Website Leaflets, software Call center Press Professionals Courses Software. Debt regulation. Amicable debt settlement Social banks Social services

Download Presentation

Debt counseling in The Netherlands

An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -

Presentation Transcript


Debt counseling in the netherlands

Debt counseling in The Netherlands

Albert Luten

November 26, 2010


Debt counseling in the netherlands

National Institute forBudgetinformation

  • Consumers information

    • Website

    • Leaflets, software

    • Call center

    • Press

  • Professionals

    • Courses

    • Software


Debt counseling in the netherlands

Debt regulation

  • Amicable debt settlement

    • Social banks

    • Social services

    • Others, ..

  • Legal debt settlement

    • Court

    • Since 1999

      > After three years a fresh start


Debt counseling in the netherlands

Repayment capacity

  • Early nineties: 3 methods

    • Detailed budget method

    • Global budget method

    • ‘Legal method’

      > Unification was needed!


Debt counseling in the netherlands

1999 Legal phase

  • All courts used the legal method

  • But many differences in interpretation

  • Sometimes large differences in outcomes


Debt counseling in the netherlands

Recofa Commission

  • Develop one method / interpretation of the legal method

  • Simply: it must work for 95% of the cases

  • Develop software

  • Maintain the method


Debt counseling in the netherlands

Law art. 475 d

  • Not seizable income:

    • 90% of the social minimum

    • Correction for rent

    • Correction for health insurance premium

    • Plus a ‘nominal amount’


Debt counseling in the netherlands

Social minimum

  • In The Netherlands we have one social minimum:

  • 1300 euro per month for a couple.

  • 90% for lone parents

  • 70% for singles

  • Else: you have to make one:

    • Focusgroups (FBU, Un. of York)

    • Reference budgets

    • Other method: budget method


  • Debt counseling in the netherlands

    Rent correction

    Rent700

    Rent in social minimum 220 –

    Rent subsidy350 –

    Correction for rent:130

    - with a maximum

    - service costs: partly


    Debt counseling in the netherlands

    Housing costs

    • High rent: move or an extra (temporary) correction

    • Own house: sell it or same correction as rented house

    • Boarding money, children with an income


    Debt counseling in the netherlands

    Correction health insurance

    Total premium200

    In social minimum 45 -

    Healthsubsidy 120 -

    Correction 35

    Own risk: payed from the estate when used


    Debt counseling in the netherlands

    Legal part

    Total net income 1500

    90% social minimum 1170

    Corr. rent 130

    Corr. health ins. 35

    Total corrections> 1335

    Repayment capacity 165


    Debt counseling in the netherlands

    Nominal part

    • The judge is free to decide upon this

    • The commission made rules for this part, so everybody is treated ‘equal’

    • Specific points: individual solution


    Debt counseling in the netherlands

    Corrections nominal part

    • All costs that cannot be paid by the social minimum plus legal corrections:

      - Corrections for subsidies

      - Corrections for income earning costs

      - Other costs


    Debt counseling in the netherlands

    Corrections for subsidies

    Households with a minimum income have higher subsidies: correction for households in debt advice that are also on a minimum level, but with a higher taxable income

    Child allowance: say 120 at minimum, 80 with income 1500

    Correction: 40


    Debt counseling in the netherlands

    Corrections income earning costs

    • Standard 5% for people with work (stimulus)

    • Travel costs

    • Costs of childcare

    • Car: depends

    • Study costs: depends


    Debt counseling in the netherlands

    Other costs

    • Costs of a handicap

    • To visit a hospital

    • ...

      Not:

    • Donations to f.e. church

    • Transfers abroad


    Debt counseling in the netherlands

    Nominal part

    • 5% extra for workers

    • Extra rent costs

    • Car

    • Childcare

    • Child allowance

    • Study costs

    • Alimony

    • Handicap

    • Other


    Debt counseling in the netherlands

    Income

    • Only incomes that can be attached: wages, social benefits, tips, pensions, et cetera

    • Not: child allowance, subsidies, orphan benefit


    Debt counseling in the netherlands

    E N D

    • www.nibud.nl

    • European Consumer Debt Network: ECDN

      http://www.asb-gmbh.at/ecdn/index.php

      www.referencebudgets.eu


  • Login