the question SWARDEAN mentioned about can you still save in a savings account would it have to be declared if it came into thousands this would be any spare money from overtime bonus etc..sorry all the questions peace of mind. because i just started on an IVA i feel a bit silly askin my ip
If you can manage to save money from your percentage of the overtime, then that is yours to do as you wish with. If you want to let it accumulate then that is fine.
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
If your contingency is 50 quid a month, then for five years not needing any of it is how much saved- £3,000 quid! If you don't drive, have a boiler to fix or any household maintainance or even children, its possible to save this amount and more from your household budget. No IP can take that away, its all in the maths.
If you have any of the above then its unlikely you will have any contingency left in a CCC inspired IVA budget.
It is entirely possible to build up a savings account whilst in an IVA, and most IPs would actively encourage this if it is coming from your share of additional income. There are bound to be one or two rainy days along the way, and having some funds behind you will be well worth it in the long run.
Many people who have had financial difficulties in the past, become very thrifty and avid savers. It is a bit like being an ex-smoker!
To be honest I was originaly expecting savings to be a mandatory part of an IVA. All the information that is given and used for calculations is normally based on monthly amounts. However I don't expect to be paying things like car insurance on installments anymore. I guess there may be a few others things that can only be handled with cash up front so savings should probably be encouraged by the supervisors?
Like others have said before, an IVA is a but like financial rehabilitisation. Encouraging savings as part of the household budgeting can only be a good thing in the long run.
You should have no problem paying car insurance by instalments Ginskipper. As this is not really credit, insurance companies rarely use credit checking. If you fail to pay an insurance instalment, the insurance will be voided.
munl - to clarify - you can save that 50% of your overtime or bonus into a savings account - the other 50% has to be paid over to your IP.
ginskipper - most insurance companies now accept monthly installments to cover such cost whether home or car.
In fact most people in an IVA do save from week to week or monthy to month to ensure that they only spend as a maximum the budget figures they are working to.
Regards, David Mond, Insolvency Practitioner for over 46 years. Personal Insolvency Practitioner of the year 2012, Personal Insolvency Practitioner of the year finalist 2013 & 2014 awarded by Insolvency & Rescue Magazine and 2015 finalist for Personal Insolvency Firm of the Year.
I pay car insurance and contents insurance by monthly instalments and have never had any trouble with that.
Plus my AA is paid monthly as well.
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
