Contigency Savings

Get expert opinion. This is the place for new questions to be posted.
7 posts Page 1 of 1
 
 

cerberus

User avatar
Posts: 57
Joined: Wed Dec 02, 2009 11:04 am
Location:

Post by cerberus » Tue Aug 31, 2010 7:26 pm
Whilst my IVA application is going through the motions, I have chosen not to pay my creditors over this period. As recommended by serveral posters on here, I have "saved" these payments to fall back on during my IVA when faced with an emergency. However, the IVA application process is taking longer than expected resulting in a bigger "pot" than anticipated.
What is considered a reasonable amount to have in this pot and do I need to inform my IVA company of the amount. I'm concerned that at my creditors meeting it will look as though I've hidden money from them.
 
 

kallis3

User avatar
Forum Expert
Posts: 76945
Joined: Mon Mar 17, 2008 4:02 pm
Location: United Kingdom

Post by kallis3 » Tue Aug 31, 2010 7:33 pm
Don't forget that you will need some to make your first payment once approved.

If you're not sure, give your IP a ring and query it.
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
 
 

Tina Shortland

User avatar
Posts: 2950
Joined: Tue Jan 05, 2010 11:30 am
Location:

Post by Tina Shortland » Tue Aug 31, 2010 7:39 pm
Hi Cerberus, don't worry, you are doing nothing wrong.

If you are choosing to not pay your creditors during the IVA application process and by living to the budget suggested for you you are managing to put aside the IVA monthly amount then that is fine and all above board. As Jan says you will need to make your first IVA payment from the pot so remember to bear that in mind.

If in doubt with anything check with your IP.

Regards,
Regards, Tina Shortland, Debt Advisory Manager for Melanie Giles at Debt Advice TV.

If you’re looking for effective debt related information, articles and news, then go now to our on-line advice service at www.debtadvicetv.com

If you’re ready to ask us for specific advice or help, then get in touch at www.call-me.debtadvicetv.com so you can start to free yourself from the stress and anxiety of overwhelming debt.
 
 

cerberus

User avatar
Posts: 57
Joined: Wed Dec 02, 2009 11:04 am
Location:

Post by cerberus » Tue Aug 31, 2010 7:52 pm
Thanks for the quick responses.
Do I need to tell my IP as the money is currently in a savings account where it's safe and I haven't let them know about this savings account.
 
 

kallis3

User avatar
Forum Expert
Posts: 76945
Joined: Mon Mar 17, 2008 4:02 pm
Location: United Kingdom

Post by kallis3 » Tue Aug 31, 2010 8:41 pm
I don't think so - you are allowed a savings account.
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
 
 

Shining

User avatar
Posts: 27019
Joined: Thu Sep 20, 2007 8:57 am
Location:

Post by Shining » Tue Aug 31, 2010 8:43 pm
I had accrued a fair amount as my IVA took a while to sort (remortgage etc.,), hang on to it as you never know when it's needed and always nice to have for a rainy day. x
IVA final payment left the bank on the 26th January 2013...looking forward to a debt free future.
 
 

MelanieGiles

User avatar
Industry Expert
Posts: 47612
Joined: Tue Jan 09, 2007 10:42 am
Location:

Post by MelanieGiles » Tue Aug 31, 2010 11:42 pm
If the sum is considerable, then it should be declared on your statement affairs as an asset described as "cash in hand" and some of that money may be required to be paid into the IVA.
Regards, Melanie Giles, Insolvency Practitioner
7 posts Page 1 of 1
Return to “Ask IVA Forum and Industry experts”