{"id":10584,"date":"2010-11-12T12:34:42","date_gmt":"2010-11-12T12:34:42","guid":{"rendered":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/?p=10584"},"modified":"2019-07-31T12:46:17","modified_gmt":"2019-07-31T11:46:17","slug":"keeping-spare-income-in-an-iva","status":"publish","type":"post","link":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/keeping-spare-income-in-an-iva\/","title":{"rendered":"Keeping spare income in an IVA"},"content":{"rendered":"\n

It\u2019s only natural to ask if creditors will take every penny of \ndisposable income if we find ourselves in an IVA and leave us nothing \nfor discretionary spending, for emergencies or for \u2018rainy day\u2019 events. \nThe answer, in a nutshell, is no.<\/p>\n\n\n\n\n\n\n\n

You will be allowed to retain a certain amount of money where you control what you do with it.<\/p>\n\n\n\n

The Income & Expenditure Statement (I&E) laid out in your IVA proposal and approved (albeit with modifications) by your creditors should include a reasonable amount set aside for emergencies or contingencies. If you are single with no family commitments then the amount will be smaller than where you have a spouse or partner or dependent children \u2013 in such a case an I&E Statement records family income and family expenditure. How much is a reasonable amount? One yardstick used is that the family I&E should allow a single debtor to retain a contingency amount of \u00a315 per month, a couple \u00a330 per month and each child \u00a312 per month. While these amounts may seem small, creditors may consider them to be too generous and may seek to reduce them somewhat. In the end however, you will have control over a certain amount of your disposable income and can retain that amount each month.<\/p>\n\n\n\n

\"Keeping<\/figure>\n\n\n\n

It is essential to ensure that all sources of income and all family expenses are listed on your I&E Statement. When the IVA is approved it is too late if a certain recurrent expense item has been overlooked. It is the responsibility of you the debtor to ensure that this does not happen and to make sure that the insolvency practitioner who is acting as nominee includes all reasonable expenses in the I&E statement of your IVA proposal.<\/p>\n\n\n\n

It is obviously essential that all\n sources of income are included: wages, salaries, housing benefits, \nchild benefit, tax credits, pensions, dividends and interest earned on \nsavings accounts, lodger rental or other income from letting property \nand so on. Household or family income should include the income of both \npartners and the contributions of any non-dependent children to the \nhousehold budget. Income should be net of all taxes & national \ninsurance deductions and any mandatory contributions to pension schemes,\n which should simply be noted.<\/p>\n\n\n\n

Spending should include all\n reasonable living expenses. Start with the \u2018must pay\u2019 bills such as \nmortgage or rent or cost of lodgings and car HP. Next summarize all food\n and housekeeping expenses for the family and the cost of utilities such\n as water, gas and electricity.<\/p>\n\n\n\n

Then list all the normal items of expenditure one by one: council \ntax, water rates, telephone, mobile, internet, sky, TV license, life and\n property insurances, vehicle costs (fuel, parking, car insurance, car \ntax, repairs & servicing), medical optical & dental costs, \nclothing & footwear, costs incurred by children (school meals, \nschool trips and activities, sports & hobbies, pocket money, \ntransport), laundry & dry cleaning, hairdressing, newspapers & \nmagazines. If you have a pet you must allow for insurance & upkeep. \nIf you smoke than unless you are sure you are giving up the habit this \nexpenditure must be listed. Modest contributions to church or charity \nshould be included if applicable. Any special unavoidable expenses (e.g.\n special diet for a family member) should be included. Last but not \nleast, an appropriate amount is included for sundries, contingencies \n& emergencies.<\/p>\n","protected":false},"excerpt":{"rendered":"

It\u2019s only natural to ask if creditors will take every penny of disposable income if we find ourselves in an IVA and leave us nothing for discretionary spending, for emergencies or for \u2018rainy day\u2019 events. <\/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-10584","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\/10584","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=10584"}],"version-history":[{"count":1,"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/posts\/10584\/revisions"}],"predecessor-version":[{"id":10594,"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/posts\/10584\/revisions\/10594"}],"wp:attachment":[{"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/media?parent=10584"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/categories?post=10584"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/tags?post=10584"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}