Hi Westie and welcome.

You'd be asked to reveal all sources of income. Equally you'll be asked to reveal all of your reasonable expenditure.

I doubt that many would object to the fostering allowances being put to the purpose for which they're intended and paid.

Welcome westie.

Correct me if I'm wrong, but as I understand it there are two parts to the fostering allowance - an element for the care of the child and a payment for you like a wage.

The "wage" part of it would have to be taken into account as part of your income, just like any other job. The part allocated for the care of the child would be likely to be set aside as purely for that purpose though. At least that's how we dealt with it last time I had a client who was a foster carer, I couldn't promise that all insolvency firms would look at it that way.

Thank you both for your replies. You are correct Kevin there are 2 parts of the allowance so hopefully an Insolvency firm would only take my income from my wage part. Fostering is my only job, so I only receive tax credits and fostering allowance. Thanks again for your help and advice.

I'd be happy to assess your situation in more detail and help you further if you wish, Westie - just click the Contact Kevin button.

Hi Westie.

A couple of years ago I helped a foster carer set up a debt management plan.

You may get some reassurance from the fact that the creditors, in that case, did not object to the money being paid directly for the benefit of the child continuing being spent for that same purpose.

Just some point to make to both Kevin and TDA, Foster Carer payments vary from local authority to local authority; there is no standard rate of payment between L.A.'s.

Thanks Rodney - that's useful information.

Thank you for sharing that rodney, I was unaware that this was the case.