An accurate living expenses budget is critical for a successful IVA. It determines how much you can afford to pay into the Arrangement each month.
- How to work out your IVA Living Expenses budget
- Get a free copy of our Living Expenses Guide
- How to use the Guide
- What if your expenses are set too low?
How to work out an IVA Living Expenses budget
When putting together an IVA Living Expenses budget you must ensure you list all the items you spend money on each month.
Many of your expenses such as your rent or mortgage are easily identifiable because they are fixed. Others will be more difficult to quantify because they are variable such as food and car maintenance.
For variable expenditures you need to ensure you include an amount sufficient for your needs. However it must also be acceptable to your creditors.
Get a free copy of our IVA Living Expenses Guide
Our Living Expenses Guide gives a comprehensive list of the expenses you should include in your monthly budget. It also gives recommendations regarding the amounts that creditors will accept in each category.
The Guide gives hints and tips about the limits you should stay within to ensure your expenses are acceptable to your creditors.
The guide is free
To get a copy click the “Download Living Expenses Guide” button at the top right of this page (or at the bottom if you are using your mobile).
How to use the IVA Living Expenses Guide
The Guide must be used for guidance purposes only. This is because there is no “one fits all” living expenditure budget. It is important that the items and amounts you include are sufficient for your needs.
If there are legitimate reasons why you spend more than the amounts suggested in the guide you should use your own figures.
The budgets you include must be reasonable in the context of your particular circumstances. You may be asked to justify any unusual figures and reduce them if your creditors feel they are too high.
What if your Expenses are set too low?
You need to use a specialist company to help you apply for an IVA. Part of the initial work will include agreeing your living expenses budget. It is very important that you only agree to figures you believe you can live with.
If the expenses you agree are too low you will be left with monthly payments which you cannot afford. You will not be able to sustain these payments and the Arrangement is likely to fail.
You may already be in an IVA but are struggling to make the payments. If this is the case your expenses may have been set too low. You must speak to your IVA company immediately and discuss the problem.
If the company you are working with refuses to allow you the living expenses you require then speak to us. You might be able to work with a different company which better understands your situation.