Maybe I wasn't too clear in my last post. First of all when you apply for an IVA, the company who you choose will ask for a list of people you owe money to, loans, credit cards, store cards etc. Then they will ask you how much you earn. They then make a list of your living allowances which includes food, hygiene, electricity, gas, phone, clothing etc and also allow a contingency of �50 per month. They add all this up and take it away from your earnings. You then start paying your IP the monthly payments and they distribute this to your creditors. After 5 years the IVA will end and what you haven't paid back will be written off. I may have made a mistake with the �250. It will all depend on how much you can afford to pay back and if your creditors will accept what is offered. I hope this makes things a lot easier to understand.