Hi,
Can I have any savings during iva ?
I've got over a 1000£ on my account. I've been told that I can not have any savings and I would have to give back all the money to my creditors. Just want to say that I'm on benefits and I am sigle mum so everything what I saved is actually from benefits. They made me cry today as I moved in to the new property with my son. I had to put floors. House was in crab condition, I borrowed money from friends and family my son need also furniture to his bedroom, we don't have even sofas.... I'm really crushed I thought with this money I can buy something and give back money. Is this right to do this ? Also with some extra cash I feel a bit more safe in case I will loose my job ... please can someone advice
I am afraid there are a few firms who seem to think savings belong to the IVA. However, most will allow you to save from your agreed allowances and your share of overtime etc. In my opinion this money is yours.
Who are you with ?
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Sorry to hear about your problems but have to agree with Foggy that you may well have to hand it over. Argue the case with your IP that this is an emergency fund.
If you're not already in an IVA then ring round a few firms and ask the question. Speak to Andy Davie/Vincent Bond (details under the ask experts a question link on the left hand side of the page) and get some free advice.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Would that not mean that the savings would be forfeit though Lisa?
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
I'm with Debt Free Direct. Now I'll stuck with them for next 5 years.
I spoke with one of them team members the lady told me that I'll have to give back everything for my creditors. That's really unfair. I beleive everyone on my place would be upset.
I didn't save the money from my wages ( its impossible) it's some kind of refund from government because I didn't earn as much as they thought for previous year.
When I said that I have this money for emergency and I need to give back most of the money to family and friends she told me to do so. However they will see my bank statements so they will know that I had all this money.
When I was struggling with all payments nobody didn't ask If I need help when it's a bit better everyone whats the money for them.
To live without any savings it's really horrible feeling and it's not about me it's all about the baby.
If I would know a year ago what I know
today I would choose more carefully for
sure.
Thanks a lot for your help !
You could always let your IVA fail and then try another company who are sympathetic although you would be back to square one with the creditors.
If you are going to be able to have savings then can I suggest that you open a different account to put these savings in? You could do what I do and have a pottery jar to put anything in which can only be opened if you smash it.
If they have told you to give the money back to your family then I suggest you withdraw it for that purpose and make sure DFD know you have done that.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
If this is money saved during the IVA then it is your money and your IP has no right to it. We actively encourage our clients to save so they have money aside for essentials and emergencies.
Some firms have a different approach which makes no sense at all and goes against everything that an IVA is supposed to do.
There is a new Standard Financial Statement [SFS] coming out supported by the banks, Money Advice Service [MAS], CAB, utility companies and even Stepchange and Payplan. This will hopefully standardise income and expenditure accounts as everyone will be using the same figures.
The interesting part is that in the SFS there will be an allowance for savings and I quote from MAS;
'A savings category has also been introduced to the SFS recognising the benefits of building financial resilience for debt advice clients. This small savings allowance is expected to help develop a savings behaviour and increase the capacity to withstand income shocks in the duration of a debt solution'.
This is excellent news and common sense and what we have been saying for years.
That's good news! Let's face it, being in any sort of debt management arrangement is supposed to teach us to save rather than spend so to take savings off you is not going to help!
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Where did the funds come from? Did you have them before your IVA started and not disclose them or have you saved them during your IVA from the element of overtimes/bonuses etc you are allowed to retain?
I haven't got any savings before IVA.
Savings come from tax credits. I'm getting childcare support as my baby is with childminder for 3 days a week - otherwise I couldn't handle it with just my salary.
I know that in my contact it says that I will have to share my overtime money with my supervisor. Oh and they told me that I am able to take small credit card for £500 just need to let them know.
Also I have ask if I could open a saving account for my little one - one lady told me that it isn't a problem until I'm up to date with my payments.
I just guess that one person is saying something totally different than another ...
I'll withdraw all money, do what they told me yesterday and I will see what they going to say.
I'm thinking to visit a citizen advice and also ask them what they think about it.
Thank you all for your opinions and help.
Shame that I didn't found this forum a year ago.
Many thanks
It won't hurt you to visit CAB - hopefully they can help you.
You could also contact Laura Harrop from DFD who posts on here (details under the ask experts a question on the left hand side of the page) and seek her opinion.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
