I believe that before someone is entering into negotiations with bank upon voluntary surrender of properties the bank may strike a repayment deal instead of a PIA/ bankruptcy.
In that scenario it would be to their benefit to have as small a salary as possible - otherwise they would be paying out way more.
I don't understand this.
I understand that they would be paying out more - but surely what matters is what they have left after payments?
E.g.
If I earn €5,000 net a month I may be allowed live on say, €2,000 a month including rent , meaning I pay out ,€3,000.
OR
I earn €2,500 net a month. I'm still allowed live on €2000 a month - meaning I pay out 500 a month.
So in scenario A, I am paying out way more.
But in both scenarios I am living in the same amount anyway.
So what difference does it make ?
In that scenario it would be to their benefit to have as small a salary as possible - otherwise they would be paying out way more.
I don't understand this.
I understand that they would be paying out more - but surely what matters is what they have left after payments?
E.g.
If I earn €5,000 net a month I may be allowed live on say, €2,000 a month including rent , meaning I pay out ,€3,000.
OR
I earn €2,500 net a month. I'm still allowed live on €2000 a month - meaning I pay out 500 a month.
So in scenario A, I am paying out way more.
But in both scenarios I am living in the same amount anyway.
So what difference does it make ?