Setting the correct IVA budget is crucial.
If you start out on a 5 year repayment arrangement with an IVA budget that you can’t live comfortably within, there’s going to be just one out come… and that’s IVA payment problems!!
An Individual Voluntary Arrangement or IVA should be built around the debtor’s needs. There should be ample allowance made for each element of the expenditure the debtor will meet in their normal monthly outgoings.
IMPORTANT UPDATE:
Due to the ever increasing and substantial number of telephone calls that My IVA Adviser receives each day regarding IVA budgeting and payment problems, specifically from people who did not seek a second opinion during their IVA application process -
My IVA Adviser must strongly recommend you call 0800 088 7503 to discuss your IVA budget BEFORE YOU COMMIT YOURSELF to ANY PAYMENTS.
Calls are free and confidential and could save your IVA from hitting budget problems in the future.
Obviously, the amount of actual allowances that are needed depends very much on the specific circumstances of each individual IVA case, depending on the profile of the individual’s circumstances, i.e. whether they are single or have a family to support, whether they have a vehicle to maintain each month or whether they need public transport costs instead, whether they rent their home or whether they are paying a mortgage and so on.
When the IVA budget is being put together, it is really important that the IVA applicant is happy that sufficient and realistic allowances are being set aside and that the IVA budget is affordable. If there is any inaccuracy with the allocations, especially if they are on the low side, then potentially there could be repayment problems in the future, during the 5 years of the IVA.
To help yourself during the setting up of your IVA budget you should make a list of all the known items that you spend money on each month. Make sure that the figures you list are realistic. Try no to exaggerate them, but equally, try not to underestimate them either. Make sure you cover as much of your expenditure as possible, listing not just the basics like food costs, transport costs, mortgage or rent and utilities, but also try to allow for the incidentals that almost everyone has to afford each month, including personal costs like hair-dressing.
Also make sure your IVA budget has a contingency allowance added to it.
This is to cover potential unexpected costs as and when they come in to your life. Normally a contingency allowance of £50 per month would be acceptable to creditors, and most insolvency practitioners would actually insist that the contingency allowance is built in, as it strengthens the IVA budget significantly, and in doing so, helps to protect the IVA against failure.
If you would like to apply for an IVA and are unsure about how an IVA budget will fit your circumstances, then you need to contact My IVA Adviser.
One of our company’s IVA specialist advisers will guide you through the IVA budget to the point you are able to be sure you can realistically afford the IVA repayments.
So call My IVA Adviser now and make an appointment to set you IVA budget now, just call 0800 088 7503 or fill out the side form and we’ll call you.
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