Iva Account Balance

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Moneysaver197711
Moneysaver197711 Posts: 7 Forumite
in IVA & DRO
Hello

I went into an iva a few months ago I am wondering with what's spare a month can this be saved? If so how much can I have in my account before I have to pay any more into my iva?

Thanks

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  • National_Debtline
    National_Debtline Posts: 7,998 Organisation Representative
    First Post First Anniversary Combo Breaker
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    Hi there,


    This is something that you will need to check the terms and conditions of your IVA about. Remember that you will more than likely have a 12month review and if your income has changed since the IVA began and you now have more disposable money, then some/ all of that will need to in the IVA. Unfortunately, we cannot say how much (if any) you will be able to keep. The answer, as is so often is the case with IVA's, lies in the small print of what you signed. Good luck,


    Laura
    @natdebtline
    We work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps
  • mwarby
    mwarby Posts: 2,048 Forumite
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    A lot will also depend on what form the saving are. It'd be unusual to be building up life savings of a significant amount during an IVA. On the other hand saving some money each month for annual expenses is more good budgeting than saving. Also if by being a bit frugal you can build a contingencies fund, you'll probably find this is encouraged (saves desperate calls to IP when x y or z breaks down)

    You do need to ensure you are being honest with your income and expenditure. Generally your asked to let our IP know of income changes pretty quickly, as well as large changes in expenditure(if say you change jobs and don't need that £200 a month season ticket anymore)

    Come review time, if you do have a large amount of savings, expect questions to be asked as to how you were able to do so. Depending on how your budget looks you may be encouraged to continue, or they may look at reducing some of the amounts.

    If your saving for defined future expenses it'd be good to point out what they are come review time(£1k of 'savings' isn't really £1k savings, if you've got an annual car insurance bill of £500, car tax of £150, and an expected MOT/serving bill of £200-300)
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