Income from a lodger

[Holly17]

I want to do an IVA but some of my income is made up from a lodger. Will this count towards my income if do an IVA? I will not be able to afford the payments if this income is not included. Any advice would be very much appreciated.

[Steve Jackson]

Hello Holly17 and welcome

If you have income from a lodger, in fact you must include this in your income calculation for your IVA. The insolvency practitioner you use will normally be concerned that this income is sustainable. However, if you have been receiving income from a lodger for a while and it is relatively easy to replace them if they decide to leave, you should not have a problem.

[Hayden]

Hello Holly17

There is no reason why you should not use your lodger income to support your IVA. How long have you had a lodger living with you? A Steve says, your IP might be a little wary if this has only just started recently. However, the bottom line is how easy would the income be to replace if the lodger moved out? As such your situation will be unique in this regard and will just need to be agreed with your IP.

[Holly17]

Hello

Thanks you for taking the time to reply to me. My current lodger has been with me for about 9 months. I had one before which stayed for 10 months. I was able to replace them pretty much straight away as I ask them to give a months notice if they move out. Would this be acceptable do you think?

[Steve Jackson]

Hello again Holly17

Based on what you have said, I think including the income from your lodger is reasonable as it seems sustainable. At the end of the day, no source of income is totally secure so the IP will always have to take a sensible view. In my experiance, IPs will accept income from lodgers on this basis.

Have you had an opportunity to discuss this with a debt expert or insolvency practitioner?

[Geraldine]

Hi Holly17

From what I understand about IVAs it sounds as though you will be able to include your lodger income no problem. Ultimately it will be down to the individual IP you work with. Did you speak to Steve at Beat My Debt about it? Let us know how you get on.

[Hayden]

Hi Holly17

Did you manage to have a chat with someone about the possibility of getting an IVA in place? If you are still thinking things through, why not have a chat to Steve at Beat My Debt as I know he will be able to help you decide on the right option and help you with the process.