Taking a holiday is allowed if you are in an IVA. You can travel in the UK or abroad. However finding the money to pay for it could be a challenge.
- Can you go on holiday during an IVA?
- Using a Bonus or Overtime for a holiday
- Saving or borrowing to pay for a holiday
- Paying for a holiday with an payment break
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Can you go on Holiday during an IVA?
There is nothing to prevent you going on holiday during an IVA if you like. The Arrangement does not stop you from travel of any kind. This could be for either business or pleasure.
If you want you can travel in the UK or to a different country. You do not need to inform your IVA Company as long as you are only away temporarily.
Having said that the one thing that will normally prevent you from going away is the amount it will cost. Given you are in an IVA you are very unlikely to have any spare cash available to pay for an expensive trip.
Using a Bonus or Overtime to pay for a Holiday during an IVA
You may be able to earn more during the month by doing extra overtime. This is a very good way of getting the money together you need to pay for a holiday.
However you must remember you cannot keep all the extra money you earn. Some of the money will have to be paid into your IVA.
You can keep anything you earn up to 10% of your normal take home pay in any given month. After that 50% of any extra must be paid into your Arrangement.
Do not spend overtime or a bonus on a holiday without speaking to your IVA Company. Some of the extra money you have earned may have to be paid into your Arrangement.
Saving or Borrowing to pay for a Holiday during an IVA
You are allowed to save during your IVA. Any money you are able to put aside can be spent on a holiday if you wish. However you may struggle to save enough to pay for the type of break you want to go on.
If you do not have enough saved you might consider borrowing. Generally speaking you will find this difficult due to your poor credit rating. However there may be a Payday loan company that is prepared to lend to you.
You should resist this temptation. Borrowing more during the Arrangement is not normally allowed and is likely to get you into further debt problems. It will mean you struggle to maintain your IVA payments and could put the whole Arrangement at risk of failure.
You can borrow from family or friends to pay for your holiday. However you will not be able to repay them until after the Arrangement is completed.
Paying for a Holiday with an IVA Payment Break
It is possible to take a break from your IVA payments. This means that the normal payment is suspended to allow you to pay for something else. They are then added on to the end of the agreement.
However you cannot just take a payment break whenever you want. It must first be agreed with your IVA Company. They are extremely unlikely to allow it unless you are facing a real financial emergency.
Paying for a holiday does not normally fall into this category. As such it is highly likey that you will need to fund your time off by some other means.
It is unlikely you will be allowed to take a payment break from your IVA to fund a holiday. You will usually have to get the money you need from elsewhere.