Savings whilst in IVA

Aaron1988

Hi all, im currently 3 payments in on a 5year IVA. I must admit im finding it hard to get my head round it all but i know its the right thing to do.

My monthly wage varies month by month due to commision. But when i have a better month am i allowed to save? Or do i need to tell the IVA people? Im worriedd that if i dont do it all right, when they ask for my bank statements at my yearly review ill lose the IVA or have to pay more. Is it worth opening a savings account elsewhere or does it matter? Any advice would be welcome. Thank you

National_Debtline

Hi Aaron1988,


You need to check the terms and conditions of what you signed - all of your rights are outlined in there. If the IVA provider also follows the IVA protocol you may have a bit more flexibility with payments, but it's not compulsory for them to follow these guidelines.


I can only advise you generally that IVA's are normally reviewed every 12months and they will look at your earnings and may ask for increased monthly payments if you have earned more than was originally estimated, and possibly a lump sum.


The IVA is legally binding and once it begins you are legally locked in for the full term, failure to comply with the requirements/ payments of the IVA means there is a risk of it failing and you being declared bankrupt. If you have assets and/or a property - this is something you should try and avoid to protect your assets.


Laura
@natdebtline

mwarby

A savings account might be useful to separate the money out (all amounts above normal). I'd tell the IVA company each time you get extra until they advise you how to handle the fluctuations.

You might find saving in general for lump sum expenses like car repairs is useful, this won't be a problem as long as you keep to agree budget over the year.