With regards to savings during an IVA it is simply a fact that savings are not asked about as you do not have any money left over to set aside in a savings account. You are in a position where you do not have enough money available to pay your debts, as and when they fall due, and are in the process of proposing an alternative means of repayment of your debts as a result of this. If you were to propose to your creditors that they should allow you to set aside money for savings they would simply state that it was their money you were saving.

Part of the process of putting together your proposal is to ensure that it is maintainable and the budget for essential household expenditure should accurately reflect the household needs. Budgeting within that to pay for Birthday and Christmas presents would be entirely as a personal sacrifice and this is something that your creditors would not object to.

With regards to creditors voting for or against IVA's I would suggest that if the IVA has already been assessed as the best solution to your current situation then you should proceed. Creditors base their decisions on many things and each IVA is different, some will receive positive votes and others are declined. However if you do not move forward with this then the opportunity for them to vote yes will not arise. Ask your Insolvency Practitioner if you are concerned in any way as they will not proceed to present an IVA proposal that they know is going to fail.

This question was answered by Debt Advice Foundation, an independent UK debt advice charity. If you're considering entering into an IVA, Debt Advice Foundation provides a free, confidential helpline and can advise you on whether you qualify. Click here to find out more.