Negotiating repayment of debt

Current debt can be repaid by regular deductions from a client's benefit. You will need to negotiate the repayment rate with the client.

The rate of repayment needs to be realistic, taking into account the client's circumstances.

When setting the rate of repayment, you need to consider the following factors (where relevant):

• the circumstances of the client and their dependents
• the ability of the client to meet their needs and the needs of their dependents
• the amount of the debt - we want clients to pay off their debts as fast as they can, but need to always bear in mind the circumstances of the client and their ability to repay without placing them in undue hardship. If the debt is large you should consider a higher repayment rate if the client can afford it
• the effect the rate of recovery will have on the client's ability to support themselves
• whether the rate of recovery would cause undue hardship to the client or their dependents
• the effect the rate of recovery would have on the client's ability to fulfil their work and social obligations - eg ensuring their child is enrolled with a General Practitioner or enrolled with a medical practice that is part of a Primary Health Organisation if required to do so

If the client does not agree with the rate of repayment you must record why you decided to set it at that rate.

When setting repayment rates make sure you give priority to recovery of advances and recoverable assistance to maximise the client's access to further Advance Payment of Benefits and recoverable assistance.

All requests must be approved by a manager client service delivery.