The Insolvency Service has just issued guidelines on the impact of the Coronavrus and those looking at IVA's (or other insolvency debt solutions). Contrary to some suggestions - IVA's are still being processed and put to creditors. even if we have been taking a hit on finances and are depending on the Government backed support schemes.
Insolvency Practitioners are advised to take into account these changing times and changing financial circumstances when considering the eligibility of debtors for an IVA.
So - income from any source can be included in the calculations. However evidence does need to be provided that demonstates how the IVA can be supported beyond Government backed support schemes. It needs to be, as far as can be forecast, sustainable for the duration of the IVA.
For someone wh has been furloughed this may mean there is less income at present but in all liklihood less outgoings too. But overall we are still down financially. This needn't stop us starting an IVA. In fact it could even be just the right time to start one. What will need to be assessed is the affordability of the IVA once finances return to "normal". So someome is receiving £400 less income per month due to the furlough. But travel costs have been avoided and eating at home is less than eating at work, and going out socialising/hobbying etc has ceased so overall we are only £150/mth worse off.
In this example maybe £100/mth is all we can afford in ann IVA at present - there is nothing to stop us applying now for an IVA. Once the furlough ends and normal income and outgoings prevail - it may be that the IVA payment level increases by the £150 that we have regained - but £250/mth as the increased IVA payment may well be much more affordable than the current level of debt payments.
Its true that creditors are having to be understranding about those who can't make debt payments at present and will allow for a payment break of a few months. But in all liklihood this won't last too long - and we need to be sorting out current and future debt problems sooner rather than later. Although everything feels like its on hold at present - we know the debts will come back to trouble us soon - no harm in exploring possibilities now.