money left afta paying monthly repayment

belly-up · Joined: 05 Dec 2006 Posts: 4

ive gota IVA but once the payment has been taken out, i have money left over. shud i take it all out? cud my creidtors find out? i dont wana have to pay back more than i have too

what do i do?

Cheers

Andrew · Posted: Tue Dec 05, 2006 12:15 pm Post subject:

If you've budgetted well enough to have money left over each month - good for you. But, when it comes to spending it, I'd advise caution.

Your IVA will be reviewed every year and, if your circumstances have changed (Maybe you've had a pay rise that's higher than just cost-of-living?), you will almost certainly be asked to put a significant proportion of your increased surplus into the IVA. This review takes place 12 months after your IVA started and then every year after that.

Also, life has a habit of hitting you with unexpected expenses (I had a leaky roof last year which I thought insurance would cover - it didn't) and if a big and unavoidable expense hits and you can't pay your IVA as a result you could be at risk of the IVA failing - you might even be forced into bankruptcy (actually unlikely if you are honest and open with your IVA supervisor) - but it could happen).

So, I'd put at least some of the money aside and build up a little reserve against things going wrong or your IVA payments being increased on review.

Hope this helps.

Andrew

belly-up · Joined: 05 Dec 2006 Posts: 4

Thats true, shud try keep sum for a rainy day! lol!

I have just been extra careful (or very tight as my kids tell me) with money.

Is it ok to keep the extra money in the bank? Could my monthly repayments be increased at the review because i have learnt to budget so well,not cos ive had a wage increase?

Cheers for help