Allowable expenditure during an IVA

An IVA is not to impose financial restrictions upon you but is meant to resolve your money problem. This is designed actually to eliminate debt from your life and make your life sustainable and free from financial troubles.

The allowable living expenses incorporated into your IVA is actually your common living costs. Costs of all those items that are bought for your daily needs like clothing, food items, insurances etc. are included in this expenditure.

While considering for an IVA, do make a note of the items that you will need every month for your living. On the basis of it, your expenditure budget will be set. You will be allowed to keep that much amount every month from your regular income for you and your family’s expenses.

Once your monthly budget is set for your monthly expenses, you won’t be able to alter it on your own. So, if you have quoted it lower than your actual cost, you will have to suffer for it unless it’s revised through the your IVA guidelines.

These guidelines serve the basis of fixing IVA payment from a debtor. By reviewing costs of living expenses regularly, these guidelines advocate for raising the monthly expenses and then only your monthly budget can be updated.

Some of the essential items included in your monthly expenditure budget are:

  • Payment for mortgages
  • Property rent
  • Bills for internet
  • Telephone
  • Home maintenance
  • Daily expenses like newspaper, laundry, car costs etc.

So try mentioning all your expenses to the creditors fairly, so that they would accept the fact you have an acceptable living standard and will approve your monthly expenditure budget accordingly.

Post a comment