Debt Advice Handbook Scotland 1st ed - with new materialChapter 3: The six stages of the debt advice process5. Stage 5: create the initial Common Financial Statement Common Financial Tool
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Common Financial Tool
The Common Financial Tool (CFT) is used to assess household income and expenditure in order to set a contribution across all statutory debt solutions. It ensures consistency and transparency when assisting a client to assess one solution against another and allows for a comparison of the repayment under each solution.
It uses benchmark expenditure levels known as ‘trigger figures’ to assess reasonable levels of expenditure. These figures are set using the CFS. To use the CFS and access the trigger figures, you must apply for authorisation.
Notes for Guidance - Common Financial Tool provides detailed information and evidence requirements to support debt solution applications.1AiB, Notes for Guidance - Common Financial Tool, available at aib.gov.uk/publications/notes-for-guidance-common-financial-tool
The CFT uses common financial statement trigger figures to assess whether a client’s expenditure is reasonable. If the client exceeds the trigger figures, they will have to provide a reasonable explanation, supported with evidence, with any application for a statutory solution.
 
1     AiB, Notes for Guidance - Common Financial Tool, available at aib.gov.uk/publications/notes-for-guidance-common-financial-tool »
Who can access the Common Financial Tool
The CFT can be accessed by someone:
    •qualified to act as an insolvency practitioner and fully or partially authorised to act for a client in accordance with the Bankruptcy (Scotland) Act 2016 (the ‘2016 Act’);
    •working for an insolvency practitioner and who has been given authority by the insolvency practitioner to act on their behalf in providing money advice under the 2016 Act;
    •working as a money adviser for an organisation that has been awarded accreditation at the type II level or above, against the Scottish National Standards for Information and Advice Providers (SNSIAP);
    •approved for the purposes of the Debt Arrangement Scheme;
    •working as a money adviser for a Citizens Advice Bureau which is a full member of the Scottish Association of Citizens Advice Bureaux – Citizens Advice Scotland;
    •working as a money adviser for a local authority.
The standard financial statement
The standard financial statement is similar to the common financial statement but used in England and Wales only. It is not currently used in Scotland.