Bank accounts

[nick40uk]

Hi guys,

I'm new to this forum and am in the process of applying for an IVA.

My question is in regards to bank accounts. I currently bank with HSBC and have debt owing to them (loan and overdraft). From what I've read they would close the account as soon as they find out about the IVA. Should I open a new account immediately with someone else or wait until the IVA gets sorted?

Also I have a few direct debits coming from my HSBC account so would I be able to transfer those over to the new account easily?

Also (slightly unrelated) how long would it take to get the IVA set up? I currently have about £60k of debt (that's everything) and take home about £1900 per month. I rent at a rate of £600 per month plus about 200 in other expenses (council tax, Sky, phones, etc.). I reckon I could pay about 700 per month comfortably. Does this sound reasonable or would they ask for more?

Any information would be greatly welcome.

[Andrew Graveson]

Hello Nick and welcome to the forum.

You are going to need a new bank account. The account should be with a bank that you do not owe any money.

I'd suggest that you do it immediately and ensure that your pay and any other income is directed to the new account.

Transferring payments like direct debits is not that difficult, the old and new bank should be able to handle that between them within a couple of weeks.

The amount that you will need to pay into an IVA will be worked out according to your income minus reasonable/necessary costs. Some of these costs will be controlled by parameters set by creditors as to what they will or will not accept.

Once you have decided upon an IP to represent you getting the IVA set-up (if it's the best solution for you) shouldn't take more than a couple of months normally.

[aguise]

Hi Nick and welcome to the forum. To add to Andrews advice. Check out all debt solutions for yourself. When you add up your living expenses make sure you include everything that you need to live, dont forget prescriptions, any insurances, think of everything that you need for daily living.
I would speak to a couple of Ips ther are two gerat ones on this site and you can get reviews about all companies and Ip's on iva.com. Just research everythinhg well and understand evrything, ask all the questions you want until you understand all.
Bank accounts ther is the natwest step, coop smile, coop cashminder, thinkbanking. A few top check out there. The ac must be basic with no credit attached.

Hope that helps a bit.

Ang

[nick40uk]

Thanks for the reply.

My main concern about the time length is that I won't be able to make the payments before it's all set up. Is there anything I can do between now and the set up to alleviate this worry? Or will I have to ride it out until then?

[Andrew Graveson]

You'll get a different message on this depending on which IVA firm you approach.

Some will tell you to cease making payments altogether. This may be because they are expecting you to fund upfront payments for the IVA to them. It might also be because they perceive that it will make the acceptance of the proposed IVA more likely when the time comes.

Some might tell you to make token payments until the IVA is in place.

Others will tell you to repay your debts as best that you can until the IVA is in place without your taking on any new credit.

I'd suggest that your priority is to find an IP that you feel will handle your IVA professionally and with a proper degree of client-care. Once you've done that I'd follow their advice.

[Reviva UK]

If you make the call to COOP tomorrow you should be set up in 7 days -

Even is you cancel your Direct debits all you need id a tel call to them advising that they send you a new DD form. Don't worry.

If you have a mortgage / rent etc you could pay that by cheque .

[m***n]

NO !!
dodgy advert now deleted
admin

[Andrew Graveson]

Hi Mark,

How are the interest rates in Sierra Leone?

[Angleparkinn]

Gooooood Afternoon Madame![:D]

[Andrew Graveson]

Brilliant!

[size5]

You will be unsurprised to know that if you type m***s into Google, then you will be directed to a dodgy looking site, in Latvia by the look of things, where various people advertise loans with terrible spelling, grammar and phone numbers that don't work.

Don't waste your time even looking would be my advice.

Regards.

[Andrew Graveson]

And how are the rates in Latvia Size 5? Compare well to Sierra Leone?

What an exciting world of finance opportunities

[size5]

Got to say, Andrew, I did give a tiny amount of thought to see how expensive it would be to borrow up to 5,000,000 USD.

With no collateral.

I am sure it is not just a con to get my bank details.

Heaven forbid!!

[Andrew Graveson]

I hope not....just posted them my passport

[plasticdaft]

I hope not....just posted them my passport

LMAO!!![:D]