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What Living Expenses are Claimed on an IVA ?

When you enter into an Individual Voluntary Arrangement (IVA) you will find that you need to make quite a few changes to your lifestyle and the way that you spend money. The most important part of this is going to be making sure that you stick to the budget that you have been set so that you can afford to make all of your repayments. You will also need to be aware that you will not be allowed any form of credit and if you have been reliant on this then you might find it a shock to begin with.

How much will I be expected to live on?

It is not uncommon for banks to feel that a budget of £150 a month is all that a single person would need to survive adequately on. When you begin your IVA it is incredibly important that you only agree to a budget that you feel you can actually stick with as you do not want to risk failing your IVA. The last thing you want to happen is to find yourself several months into your IVA and struggling as you may not be able to get your repayments changed and therefore will end up breaking the terms of your IVA if you cannot pay.
 
It is important that you make sure you stick within a reasonable budget as it is only fair that you pay back as much of your debt to your creditors as possible, do not view this as an easy way out.

How to live whilst in an IVA

The biggest factor to remember is that you must stick to your budget. Do not be tempted to go over this as you will just end up in trouble once again. You might find that when it comes to the weekly shop that you have to cut out luxuries, change supermarket or drop down a brand level to help save you money.

Remember that you are not allowed any credit during this time and if you fail to meet your repayments you will most probably fail your IVA.