{"id":10949,"date":"2011-09-01T12:48:37","date_gmt":"2011-09-01T11:48:37","guid":{"rendered":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/?p=10949"},"modified":"2019-08-02T12:50:23","modified_gmt":"2019-08-02T11:50:23","slug":"my-income-in-an-iva","status":"publish","type":"post","link":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/my-income-in-an-iva\/","title":{"rendered":"My income in an IVA"},"content":{"rendered":"\n

Any good proposal for an Individual Voluntary Arrangement (IVA) will include a sensible, realistic and well constructed Income and Expenditure Statement (I&E). For anyone who is contemplating offering proposals to creditors for an Individual Voluntary Arrangement, it may be a concern as to whether creditors will look for the last penny of disposable income to be contributed to the IVA, with no provision for emergency expenditure or for \u2018rainy day\u2019 events. These events might include illness or injury to a member of the family or unexpected vehicle breakdown or the necessary replacement of a domestic appliance such as a heater or cooker. <\/p>\n\n\n\n\n\n\n\n

In truth, a good I&E statement should include a reasonable sum set aside for such emergencies or contingencies. If the insolvent debtor is single with no family commitments then the amount will be smaller than where there is a spouse or partner or dependent children. If the debtor has dependents, the proposal\u2019s I&E statement should actually be a summary of family income and family expenditure. How much is a reasonable amount? One yardstick used by creditors 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. Creditors may sometimes decide that in all the circumstances of the case, such contingency amounts are too generous and may seek to reduce them somewhat. In the end however, the debtor will have control over a certain amount of the disposable income and can retain that amount each month.<\/p>\n\n\n\n

\"Income<\/figure>\n\n\n\n

The important thing however is to ensure that all sources of income \nand all family expenses are listed on the proposal\u2019s I&E statement. \nWhen the IVA is approved at the meeting of creditors it is a little bit \nlate to realize that a certain recurrent expense item has been \noverlooked. It is the debtor\u2019s responsibility to ensure that this does \nnot happen and to make sure that the insolvency practitioner who is \nacting as nominee includes all reasonable expenses in the I&E \nstatement in the 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 to the household budget of any \nnon-dependent children who reside with the debtor. Income should be net \nof all taxes & national insurance deductions and any mandatory \ncontributions to pension schemes or other agreed and mandatory \ndeductions such as union dues, parking fees and so on.<\/p>\n\n\n\n

Spending should include all\n reasonable living expenses. In compiling I&E statements, the debtor\n should start with the \u2018must pay\u2019 bills such as mortgage or rent or cost\n of lodgings and car HP. Next summarize all food and housekeeping \nexpenses for the family and the cost of utilities such as water, gas and\n 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 and servicing), medical optical and dental costs, clothing \nand footwear, costs incurred by children (uniforms, school meals, school\n trips and activities, sports & hobbies, pocket money, transport), \nlaundry & dry cleaning, hairdressing, newspapers & magazines. If\n you have a pet you must allow for its insurance and upkeep. If you \nsmoke than unless you are sure you are giving up the habit this \nexpenditure must be listed although creditors are likely to chop this \ntype of expenditure to the minimum. Modest contributions to the debtor\u2019s\n church or charity should be included if applicable. If a member of the \nfamily has a health condition either mental or physical which requires \nspecial expenditure, any relevant unavoidable expenses such as a special\n diet or protective clothing should be included. Last but not least, an \nappropriate amount should be included to cover sundries, contingencies \nand emergencies.<\/p>\n","protected":false},"excerpt":{"rendered":"

Any good proposal for an Individual Voluntary Arrangement (IVA) will include a sensible, realistic and well constructed Income and Expenditure Statement (I&E).<\/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-10949","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\/10949","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=10949"}],"version-history":[{"count":2,"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/posts\/10949\/revisions"}],"predecessor-version":[{"id":10960,"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/posts\/10949\/revisions\/10960"}],"wp:attachment":[{"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/media?parent=10949"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/categories?post=10949"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/tags?post=10949"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}