A bank account with a creditor within the IVA

[stewpots]

As per a previous thread after 19 years with First Direct (no debt at all with them) I have been given 2 months to find another bank (1 month left).

I have an old Santander current account not used in years which I have re-instated

Got a card ,cheque book etc

Now Santander are within my IVA (3 months in to it). Although their credit card side were still chasing my debt but have written last week now aware of my IVA.

Would any money I put into the Santander current account break the rules of the IVA ?.

Obviously I would prefer to have a bank I know rather then an internet bank I have never heard of that has lousy forum reviews.

I would accept if Santander says in 4 months, you can’t have this account you in an IVA but could they ‘take’ the money I have in there. It might run to many thousands

The current account has no after draft facility

My mortgage is with Santander

[liamjames]

Santander would have no right to take this money to settle your unsecured debt... but that won't guarantee that a member of staff won't make a mistake later down the line. I'd still look for another bank if possible, just for your own peace of mind.

[Skippy]

I wouldn't take the risk personally.

I understand that you are having difficulty getting a high street account, but I would rather open one of the 'managed' accounts such as Secure Trust than run the risk of Santander (who aren't exactly known for their customer service) getting it wrong.

[komakino]

Nationwide Flex Account m8....that's what I opened as soon as I started my IVA process. I moved all of my essential Direct Debits and wages over straightaway. On top of that, they're giving out Visa Debit Cash Card plus cards at the moment that save lots of hassle.

[kallis3]

I'd pick another bank myself as well.

Nationwide are not likely to give an account post IVA these days but their new card is great - used it at Asda pay at pump today with no problems.

[Shining]

I would tend to agree with the others and don't risk it, nothing wrong in keeping the account and maybe using it post IVA? x

[Foggy]

Hmmm --- to be on the safe side move the money out of reach of creditors. Before IVA I set up a co-op account ( has limitations, but will suffice), as my bank is one of my creditors (well, their credit card division is). I am told they might be able to draw on funds in my account as a set off against the debt owed to them. So, rather than take the risk, move the money.

[kallis3]

Once you are in an IVA then a creditor bank cannot take your money.

It is recommended that you move banks though prior to an IVA.