Debtors to get one-week annual holiday allowance of up to €1,500

Under new insolvency guidelines, couples in debt-relief arrangements can earmark €1,500 for a break and single people can keep €1,000

The allowance is to give people leeway to meet their ‘psychological and social needs’ while resolving their financial difficulties. Picture: Getty Images/iStockphoto

People who get debt write-offs will be given an annual “holiday allowance” for the first time, under new living expenses guidelines to be published this week.

They will be allowed to shield some of their earnings to pay for a one-week domestic holiday rather than having the money deducted for repayments of their remaining personal debt.

The annual holiday allowance will amount to €1,000 for a single person and around €1,500 for a couple to ...