Information on allowed budget for pets during an IVA

Individual Voluntary Arrangements (IVAs) have always proved to be beneficial to address common debt problems these days. While calculating your IVA living expense budget, you may also like to understand how much budget you can include for keeping your pets.

Before you finalize on your budget expenses, make sure what you have agreed upon meets your requirements at the most. And if you have pets, you can allocate a monthly expenditure allowance of up to £23 a month to make up for their maintenance and insurance fees.

This is generally accepted by most of the creditors and can conveniently cover the pets’ costs. If you have more than one pet or a pet needing specific medication, your creditors will allow you to include the exact expenditure for the same in the budget.

On the other hand, the creditors do not pay for the expenditure for certain pets, such as horses whose upkeep can fetch up to £200-250 a month and which need to be borne by the debtors themselves.

This is basically because the IVA it is based upon the mutual settlement between the two parties and the creditors mostly end up writing off the money you owe them. Therefore, in such a situation, you have the option to engage a third party who will pay for the upkeep of such pets. Alternatively, a new home can be specifically used for the pets.

Still not happy about your decision, you may like to request your IVA practitioner to prepare an IVA proposal for you that will include the pet expenses and forward it to your creditors for their consent.
However, there could be chances that the latter does not accept it and then you cannot pursue with your IVA. In such a scenario, you can consider a Debt Management Plan (DMP) where you repay your debt at a reduced rate.

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