Now I have just started my iva I have a quick question .Obviously certain things in my budget wont be used every month ie car repairs (hopefully !)and may be even able to spend a little less on the food budget .How much are you allowed to have left over each month before it is deemed you need to increase your iva payments .My review wont be until end of next february but it will be pointless scrimping and saving if at the annual review they are going to say you can afford to pay more into this iva as you have saved up a bit of money ! Any advice on tbis matter would be greatly appreciated .
You've hit the nail on the head - the IPs thinking will probably be that if you have a surplus to save you can afford to pay more. Nothing to stop you using cash under the mattress though!
Hi! I used to work for one of the UK's biggest Insolvency Practitioners - I don't work for an IP anymore but still have an extensive knowledge of the IVA industry. How can I help?
Some things you have to save each month towards such as car repairs/mot etc.
But things like shopping they wont check with detail so if one week you spend less than ‘budgetted’ stick that in a jar!
We had hairdressing as an allowance but didnt spend it monthly so that was put towards christmas for example, or a day out in the holidays.
We were encouraged to save bits and pieces. Obviously if youre able to put a significant amount away theyll get suspicious but few quid here and there from your allowances is fine. Obviously gifts under £499 is all yours (£500+ is all theirs!!!)
And your share of any overtime is yours too.
Youll get used to it. It takes a few months to get the hang of a new means of spending. Plan ahead for events rather than rely on credit. Its a new mentality to spending. We were actually better off in IVA than when had credit!
