{"id":10218,"date":"2011-01-27T10:23:07","date_gmt":"2011-01-27T10:23:07","guid":{"rendered":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/?p=10218"},"modified":"2019-07-02T10:26:12","modified_gmt":"2019-07-02T09:26:12","slug":"savings-in-an-iva","status":"publish","type":"post","link":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/savings-in-an-iva\/","title":{"rendered":"Savings in an IVA"},"content":{"rendered":"\n<p>It seems like a contradiction in terms to use the word \u2018savings\u2019 in  the context of an IVA. However, not only is it possible to save in an  IVA it is often essential! The truth is that most IVAs are based on  monthly contributions for a term of five years, more or less. <\/p>\n\n\n\n<!--more-->\n\n\n\n<p>The amount  of the monthly contribution is worked out by calculating how much the  debtor has left over from his or her income when allowance is made for  all (reasonable) living expenses including mortgage or rent and car HP  but excluding payments to unsecured creditors. The \u2018left over\u2019 amount is  usually called disposable income or DI.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"alignleft\"><img loading=\"lazy\" decoding=\"async\" width=\"346\" height=\"346\" src=\"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-content\/uploads\/2019\/07\/Fotolia_4292147_XS.jpg\" alt=\"Saving in an IVA\" class=\"wp-image-10223\" srcset=\"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-content\/uploads\/2019\/07\/Fotolia_4292147_XS.jpg 346w, https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-content\/uploads\/2019\/07\/Fotolia_4292147_XS-150x150.jpg 150w, https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-content\/uploads\/2019\/07\/Fotolia_4292147_XS-300x300.jpg 300w\" sizes=\"auto, (max-width: 346px) 100vw, 346px\" \/><\/figure><\/div>\n\n\n\n<p>In the real world however, household expenditure can vary  considerably from month to month. Certain items such as car insurance,  house insurance, school fees and so on are often payable once a year or  once a quarter and not monthly. The debtor in the IVA has to put money  aside each month so when the intermittent items of expenditure become  payable there is a \u2018pot\u2019 of money \u2018saved\u2019 to make the payments. On an  ongoing basis the debtor has to save money and it makes sense to save it  in an interest bearing account with the knowledge of the supervisor.<\/p>\n\n\n\n<p>In approving the IVA, creditors will have agreed the reasonable \nexpenses listed in the debtor\u2019s income and expenditure statement which \nformed an essential part of the IVA proposal. Apart from all reasonable \nliving expenses, creditors will also normally agree to allow the debtor \nto set aside a small amount each month which will then be available to \ndeal with emergencies and contingencies \u2013 which arise in the real world.\n Again, these monies are savings \u2013 of a sort \u2013 at least until an \nemergency occurs, when they will be available for that rainy day!<\/p>\n\n\n\n<p>Finally, some debtors manage to adjust their lifestyles when in IVAs  by being just a little bit more frugal and keeping the household  expenditure really tight. Although the living expenses allowed in the  IVA are already usually really tight, some debtors can just about manage  to put a few pounds aside each month from their \u2018frugality\u2019 and good  management of the household budget. Again, these monies can be regarded  as savings.<\/p>\n\n\n\n<p>\nAll such savings can be regarded as a sort of insurance policy so that \nif some temporary negative event occurs which threatens the successful \ncompletion of the IVA, these savings allow the debtor something of a \nrespite and buy at least a bit of time during which a variation of the \nIVA can be proposed to creditors in the light of the debtor\u2019s changed \ncircumstances.&nbsp;&nbsp;\n\n<\/p>\n","protected":false},"excerpt":{"rendered":"<p>It seems like a contradiction in terms to use the word \u2018savings\u2019 in the context of an IVA. However, not only is it possible to save in an IVA it is often essential!<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_seopress_robots_primary_cat":"none","_seopress_titles_title":"","_seopress_titles_desc":"","_seopress_robots_index":"","footnotes":""},"categories":[7],"tags":[],"class_list":["post-10218","post","type-post","status-publish","format-standard","hentry","category-iva-articles"],"_links":{"self":[{"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/posts\/10218","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/comments?post=10218"}],"version-history":[{"count":1,"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/posts\/10218\/revisions"}],"predecessor-version":[{"id":10224,"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/posts\/10218\/revisions\/10224"}],"wp:attachment":[{"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/media?parent=10218"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/categories?post=10218"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/tags?post=10218"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}