The Correct Way to Handle Unexpected Costs on an IVA

No Need to Panic- Let’s get these debts in order!

Once we look at the formal IVA agreement, many of us struggle to be calm about it. It is comprehensive, forbidding, and entirely intimidating/. Because of the formality of this arrangement (IVAs), there is a misconception that it doesn’t cater to or accommodate unexpected expenses such as car repairs, fires, thefts or other emergencies. This is simply untrue. There are many cases in which IVAs do allow for a specific level of leeway.

Thus, if you ever find yourself dealing with an unexpected expense during your IVA, there is precedent that it should be dealt with as urgently as possible. Contact your IVA provider as they are usually in the best position to help you. In addition, here are some practical tips to help you manage these unexpected costs on an IVA.

  • Get some breathing space and don’t over-stress.
  • Don’t deal with any emergencies alone. Contact your IVA provider and make them aware of the problems. They are legally and ethically bound to assist you.
  • Payment breaks are a great source of a temporary reprieve during emergencies. Let your IVA provider decide the terms of how long they last. Explain the situation candidly and comprehensively and then plead for a payment break.
  • A payment break may be suitable in these situations:
  1. Childbearing
  2. Job loss
  3. Disease
  4. Separation/divorce
  5. Unexpected expense
  • Stick to your budget and put money aside for emergencies every month.
  • Locate other sources of financial assistance such as local authorities which can sometimes offer emergency funds, and food banks.
  • Get several quotes for all emergency expenses to get the best rates and not overspend.
  • Don’t take extra credit in any case. Taking out extra credit will endanger your IVA. It may even be terminated.
  • Ask for help from creditors. Most creditors are very understanding and should work with you to come to an agreement.

Keep this tips in mind. Have more questions? Contact us now

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