IVA - how much do they take?

Bobbledoo

Am I right in thinking that if you enter an IVA ALL your additional income after essentials is taken to pay off your debts. Are you allowed money for anything like childrens' christmas/birthday presents or the odd day trip with the family? I'm not talking about expensive holidays or other luxuries just the things that make life bearable.

kdean

They have taken all of my extra income, I have only got £2 a month which is not accounted for. It does make birthdays and Christmas difficult but we usually sell stuff on Ebay to fund these things. We haven't ever taken our children on holiday.

Bobbledoo

Thanks, we are just starting the process of sorting out our debts and feel it's difficult to get a true picture of life after the big decision. I feel so guilty that I've done this to my children. Do you think you made the right decision going for the IVA over br? I think it might be the better move for us so we don't loose the house. I also feel like I've got to try all options before br. It's good though to enter with my eyes open then I know what to expect, warts and all, for the next few years.
Cheers again.

thecableguy12

most iva compnies will allow you an emergency fund of 50 per month that wont be taken into account on income and expenditure this can be used for birthdays emas etc i can provide you with a list of maximum expenditure allowed if this helps?

Bobbledoo

Thanks that would be great. Any tips are greatly appreciated. Looks like its a bit of moving money around, but clearly I'm not too good at that! haha

thecableguy12

Bobbledoo wrote: »

Thanks that would be great. Any tips are greatly appreciated. Looks like its a bit of moving money around, but clearly I'm not too good at that! haha

they will review your account every year if things get hard in some cases depending on the rules they may be able to decrease your payments upto 15% all they really look for is income increases so they can up the payments and any strange large payments and credits on ya bank statments, if nothing changes on ya income it should be ok. it may be worth opening a small savings account to put the £50 per month into to save for xmas etc, you will be able to open basic bank accounts and saving accounts on an IVA in most cases

thecableguy12

Bobbledoo wrote: »

Thanks, we are just starting the process of sorting out our debts and feel it's difficult to get a true picture of life after the big decision. I feel so guilty that I've done this to my children. Do you think you made the right decision going for the IVA over br? I think it might be the better move for us so we don't loose the house. I also feel like I've got to try all options before br. It's good though to enter with my eyes open then I know what to expect, warts and all, for the next few years.
Cheers again.

as you state you have a house then an iva would be best for you, if you had no assetts etc then br would have been the best option