advised to open a new bank account

[tramps]

i have been advised to open a new bank account, before i take out an iva, as the bank iam with will be part of the process, i am concerned that any bank when they know i have taken out an iva will close my accounts, and iam scared of how i will paid as both my wife and i get paid directly into a bank account ?

[cr15py]

Hi tramps, and welcome to the forums.

To my knowledge, there is only HSBC/First Direct who habitually close accounts when you are under an IVA. Other banks do not seem to mind you operating a basic current account (with no overdraft) whilst in an IVA.

As you correctly state, if you are with a bank who are one of your creditors, then you should open a new account with a different bank, as they can use any money in your current account to offset any monies you owe them.

Co-operative Bank and LloydsTSB are two that appear to be favourable at the moment, providing neither of them are your creditors.

Visit my blog at http://cr15py.blogs.iva.co.uk

[iva experts]

Welcome to the Forum Tramps,

There have been many cases on this forum where individuals have gone to open a new bank account, told the bank about there upcoming IVA and they still received a basic bank account. I would advise that you go into a branch and open account rather than applying online. The best thing to do is be upfront & honest.

I would advise that you do not open an account with HSBC/First Direct as they are known for scanning their clients on the Insolvency Register then terminating the client's account.

Best Regards,
IVA Experts
http://www.iva-experts.co.uk/

[luluj]

try Co-Op Smile account - internet banking with a visa debit card and cheque book! Or the Halifax Easycash account - Visa Electron card - no cheque book - both accepted us after our IVA was approved.

[:)]

Lulu

[hallway]

I applied for a current account (no overdraft or cheque book) when I started Iva process with Halifax and touch wood a year into Iva they have been fine.

[james.c]

I have a basic account with abbey and internet banking and its been good and no charges for having the account

no matter how bad money gets, theirs stll alot more important things in life - 48 payments to go

[kilohurtz]

I opened up a Lloyds bank online last week. I didnt not mention anything about an IVA cause right now I am only in the process of finding out about what they are and how they work.

I did decline the overdraft facility as I wouldnt need one. I am not sure why I was asked to get a new bank account as I have not defaulted on any payments as of yet and even if I did I dont owe a penny to my eixsting bank.

Should I be upfront and tell Lloyds that I am consider an IVA.

I also got one the those prepaid credit cards which sound good, well its not credit it works more like a debit.

Regards
KiloHurtz

[Kes]

Hiya Kilohurtz, The reason you need a new account is so that your current bank account is in no way connected to any of your creditors i.e. credit cards, loans etc. Unfortunately, allot of the banks are merged now and so you need to be careful for example you might have a debt with Barclaycard and find Halifax coming after you for the debt as I believe they to are merged now. I went to Nationwide building society as I read they are the best bank for not being connected with anyone else. If your money is paid into a bank account which is related to any of your debt they will simply take all the money which is paid in once they have an idea you are going to enter into an IVA. This will be apparent very soon as to negotiate with your creditors your IP will tell you to stop paying them and instead pay them the money for the setup fees involved in an IVA. Your creditors will chase you for a while, however once your IVA is agreed it is against the law for your creditors to contact you in anway again giving you back your peace of mind. Hope this helps. Kes