Having read a few of the questions on here today and trying to get an understanding of how IVAs work, I've still got one burning question that worries me.
In principle, the whole point of an IVA is to help the debtors strip out some expenses and the creditors to reclaim at least some of the debt owed to them, correct?
With some large expenses (loan repayments etc) freed up, in theory, the debtor could start to save a little? Is the debtor then required to use those savings to pay back the creditors, even if this could then lead to further financial issues?
I don't want to end up entering an IVA with good intentions of actually repaying the debts without constant worry and being able to put money aside for emergencies, if it's then going to be demanded back?
My understanding is, any money you can save during an IVA is yours?
Thanks in advance!!
If you can manage to save, the money is yours. However you need to remember that you have to be frugal and you will have allowances to adhere to and your credit rating will be shot for six years.
Thanks for the reply.
I guess I'm worried that if I save up a decent amount, by trimming out some expenses, they'll take it and then something goes wrong with my car I'll be totally screwed.
I drove an older BMW, therefore if something goes wrong, it's expensive. But then again, things going wrong on any car is expensive. Admittedly I could have a cheaper car to maintain but the costs of changing are just too prohibitive.
I have literally zero savings right now and my debt payments do put a huge strain, so am hoping the IVA will lift some of the burden.
I survived my IVA with "E-Bay Specials" -- almost disposable vehicles, but was lucky most of the time !
Set up your budget with realistic and as true as possible allowances remembering things like dentist, hairdresssers, opticians etc. Things i went years not using as couldnt afford too!
But they all come with an allowance based on your family size.
Like foggy said if you stop using a budgetted allowance such as TVor mobile then that will be added to iva at review. if you have a budget for food, emergencies etc and dont use the full amount you can add thise pounds to savings or be savvy with offers etc.
You shouldnt be able go save significant amounts if budget set correctly but these few pounds will build up during a year.
Wehave survived 5 christmases with three kids and managed by using various means.
It is possible. Ifyou are shown ti be able to save significant amounts they will say budget is wrong and try to increase iva payment so dont make a big thing about having savings. Stixk to your allowancesand be realistic about what you actually have to spend on stuff.
Wise to be apprehensive about entering an IVA, it's a massive decision to make and isnt for everyone.
Good that you are asking questions before deciding, so many people only ask question after they have committed themselves!
Who is onlineUsers browsing this forum: No registered users and 20 guests
Ask the IVA Experts a QuestionSimply complete form and you will get an answer from our IVA Experts (multiple replies within an hour *)
* Any use of this forum is conditional on you having read and agreed to our terms and conditions.
* If you enter your phone number, IVA.com Group Limited will give you a courtesy call to ensure that your question has been answered.
* The question will be posted on our forum, we will email you the location