www.iva.co.uk

hey

just a general question regarding disposable income. when taking an iva are you left with any money at the end of the month or is every penny spent on the iva. i appreciate we should pay back as much as we can afford to the creditors but obviously need some money left over.

are we talking £20 / 100? etc

any replies would be appreciated

Normally there is a contingency of some sort but you need to discuss with your IP what is your real income & expenditure so they can give you advice on what would be acceptable to the creditors.

Stewart - are you waiting acceptance? If so, does your proposal not include some sort of contingency?

i was waiting acceptance for my dmp which i am currently in but am thinking about an iva but havent got time to try to sort it out as of yet due to family problems so trying to get as much info as i can so i know what to expect before i talk to a IP.

thanks for your reply

I agree that you need to check this with your IP.

You should have put down all income and expenditure, including a contingency allowance, and basically all of your disposable income after your priority bills have been paid will go to your IVA.

cheers for the replies. so all DI is used for the IVA and then in the I+E they allow a contingency for emergency things / car tax etc which is your money for the month so to speak?

The income and expenditure account gives allowances for a number of things that do not arise each month such as repairs and maintenance, medical, dental, sundries and emergencies. At the end of each month you should have some money left which it would be advisable to put aside into a savings account. Then when the money is needed for an MOT or new pair of glasses for example the funds are there to pay for them.

It would be a bad IVA that left a client with nothing at the end of the month because it would require a variation at the very least but more likely would fail.

You should put down exactly what you spend on everything, car tax, insurance, dental, prescriptions etc.

Anything after that is DI and will be expected to be paid across to the IVA.

You should include all essential expense related to your vehicle, including insurance, MOT and car tax etc, within your I & E. Your contingency should be just that.... a small amount set aside for the unexpected. At the outset mine was set at £40 per month.

cheers for the support and help guys

hopefully in the new year i can get my head straight and contact an ip for a meeting and take it from there.

You set the budget - and no one else - as it needs to be based on your own specific circumstances. Creditors do operate under certain guidelines, but are very prepared to consider and accept variances to these where they can be properly justified. Ultimately, they will have the say so, so it might be a good idea over Christmas to sit down quietly and work out an affodable budget based on your own circumstances. Perhaps make a New Year's resolution to try and be as frugal as possible and see how you get on in January.