I want to start an IVA and need to but every one on the forums seem to say they have little or no money left at the end of the month? I thought if I did one by not paying out so much a month, I would have more money left? I don't understand, I thought I would be better off? Is this not the case?
The idea of an IVA is to pay back as much to your creditors as you can. Your payments are decided upon the amount of disposable income you have after your priority payments have gone out.
You are not expected to stay at home for five years, but you are allowed a small amount for social purposes plus anything you can save from other expenses.
The advantage is that your creditors will be off your back and you will be able to live within your means.
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
In my expenditure things like car maintenance and tax are included, something that i had no allowance for whilst trying to pay off my debts without an IVA. So i should come out a little better off in my IVA without having to worry how i'm going to get the money together if something goes wrong with my car. This is of course assuming that my IVAs accepted!!!
personally we are better off.ok so we pay £539 a month (well 581 at the mo) however before iva we were just making payments to all our debtors and then couldnt afford to go food shopping!! we also have an amount toward tax and car repairs. for us there was no other solution
I have found that the IVA has been a god send. Like other posters have said the idea is to be responsible and pay back what you can but you are allowed various budgets and I have found that I am managing quite well ( well we were until my husband had to stop work through illness - long story and most posters on here know but I will post later with update).
You are right in that you are allowed budgets for various things and like you I didn't really have budgets anymore for most things as I was just robbing Peter to pay Paul. The IVA is the best thing I have done - it has got rid of all the stress of hazzling phone calls and me wondering how on earth I am going to pay everyone.
I worked out a sensible realistic budget with my pracitioner and am now moving forward.
