An Individual Voluntary Arrangement (IVA) is a legally binding agreement that allows you to reach an agreement with your creditors to pay off your debts over an extended period of time. As part of the IVA process, you will be required to make monthly payments towards your debts. It is important to be disciplined and consistent in your efforts to make these payments, as failure to make the required payments can result in the IVA being terminated.
One of the key components of an IVA is the creation of a budget that outlines your income and expenses. This budget will be used to determine how much you can afford to pay towards your debts each month. While you are required to make the agreed-upon payments towards your debts, you may still have some flexibility in terms of your spending. However, it is important to be mindful of your budget and to prioritize your debts over other expenses.
If you are considering an IVA and are not sure if it is the right option for you, it is a good idea to speak with a financial professional or an attorney for advice. They can review your specific situation and help you determine the best course of action.