An IVA (Individual Voluntary Arrangement) can be a big help if you're struggling with unmanageable debt.
But like any debt solution, IVAs also have their minus points. For one, you'll be left with very little money to spend on yourself: most, if not all of your disposable income will go towards repaying your debts and other essential costs.
Will I have any money for 'non-essentials' during my IVA? On an IVA , you'll be expected to pay as much as you can towards your debts. This will be calculated by looking at your income and your essential expenses (e.g. mortgage/rent, bills, etc.). Your debt repayments will be based on what's left once your essential costs have been covered, and this will ensure that you can afford all your commitments every month.
This means that you won't have very much left to spend on things like meals out, CDs, books or other things that you don't need for your basic standard of living.
Can I spend money if there's an emergency?
An example of a situation in which you may be able to spend money during your IVA is if you need to replace something that is essential for your work or basic standard of living.
So, for example, if your car breaks down and you need it for your work, you may be granted a short break from your IVA payments to cover your repair (or replacement) costs. Another example would be if you work from home and your computer breaks down - you should be able to replace the computer before starting your IVA again.
However, you'll have to stay within reasonable limits - you won't be able to spend any more than is absolutely necessary - so you wouldn't be able to buy a £1000 laptop if you can find something good enough for £300, for example.
Your Insolvency Practitioner (IP) will let you know how much you can reasonably spend on replacement items like this, and they will keep your lenders informed along the way.