www.iva.co.uk

Hello

My hubby is in the process of an IVA application at present. The main thing that has caused this is a stop in overtime and a decrease of 1k per month.

Hubby has just been paid and this months wages still include partial overtime since it didn't stop until the end of August. We have had 1 proposal thhrough but this needs amending.

The question is are we allowed to buy things we need urgently like new spectacles etc and keep the rest as a contigency? We obviously intend to make sure we have enough for the iva payment incase it starts in this months money.

Its just that I feel a little guilty but once the iva has started it will take ages to save up for some new specs etc.

Do the creditors look at your most recent bank statement in the meeting? In the yearly review will they say something if we appear to have spent hundreds of pounds a short while before an iva is accepted?

What type of things do they look at on your statements in the yearly review. Do they see what you have been spending your money on for the term of the iva?

Hello In-deep, I think most IPs take a pragmatic apporach and realise this is an opportunity to build a contingency or make essential purchases (such as spectacles).

My personal experience was that within reason I could set my start date for repayments; so although the IVA was approved on 29 June (my June salary), I started payments on 25 July (my July salary).

I can't help with the bank statements as I haven't had to submit any since the first fact find.

Good luck with the creditors meeting! Lots of people posting about this at the moment - with positive outcomes!!

There is no obligation on your part to pay any overtime into the IVA pre approval, and if anything it makes sense for you to use this money to buy these essential things before you enter into the Arrangement.

Creditors dont actually look at the bank statements, it is your IP (or his staff) who carry out this inspection and typically what they are looking for is that you havent obtained any further credit by way of an overdraft and to confirm your expenditures such as gas, water, electric etc.....

If you have made a large purchase for something then yes the question could be asked how you funded such purchase, but if you have paying in your overtime as and when you need to then the money you have left over with is yours to do with what you wish.

If a budget has been set for £30 clothing and you only spend £5 and use the other £25 to save a litte contingency fund then there is no issues with this at all.

Good luck with everything