Does an IVA effect your bank account

[james.p]

Does an IVA effect your bank account (i.e. if you have a premium bank account (platium account etc) with benefiets, will you loose the account?

[Lisa2009]

You will need to open a bank account with a bank that isn't one of your creditors. The account has to be basic with no overdraft facilities.

[angela18]

we opened a smile account (co op) and cancelled overdraft, we also have an easycash with halifax with no anything just electron card

[Emily]

If you own money to this bank account then it will be frozen then default notice served. If you don't own this Bank any money....you could get away with it being open....unless it is HSBC

[freelili]

You are not allowed any credit facilities in an IVA. HSBC and First Direct have been known to close accounts when they find out. They only give 30 days notice. If you have debts with your current bank they have the right to offset their own debts, so you will need another, basic account.

[plasticdaft]

We had a Lloydstsb platinum account and as our main creditors we switched our wages into a co op account and set up new D/D's etc. We are however still paying £7-95 month out of our old tsb account for the platinum package(giving us aa cover and mobile phone insurance). dont know if this is an oversight or not,but if they keep taking the money each month for our platinum account,we will expect to maintain the benefits.

[kallis3]

We have an account with Nationwide, totally basic with just a cash card.

I still have my Barclays account open, but as they were one of my creditors there is only 45p in it.

If they don't close it, I'll start using it again once my IVA finishes as it has a debit card and cheque book.

[Til]

Hi Freelili,
We just got approved and we just moved our bank to a HSBC standard account with solo card and no overdraft - do you think they will close this if and when they find out about IVA? We don't have any credit facilities with them obviously so would they still close it?

[Viki.W]

Til, apparently, HSBC and First Direct close the accounts of anyone on the insolvency register. I was told on here that they scour the list and if you're on it they will give you 30 days notice and then close it whether you owe them any money or not. This has happened to a few on here bit others have been ok.

[Til]

Oh Joy! Another glitch to watch out for!
Thanks for warning Viki - Can anyone recommend a good alternative bank for if and when it happens?

[Viki.W]

I opened one with HSBC and when I read what they did on here I opened one with Co-op. It's great. As long as they are not one of your creditors! X

[Til]

Cheers Viki - will look at Co-op just so I'm prepared!!!
Trust me to pick the one difficult bank !! [:p]

[freelili]

Hi Til

I only know because a few on here a couple of years ago had their First Direct accounts closed, they are related to HSBC. If you have an IVA payment going out, they might pick it up so you could open another, just in case.

I opened an account with the coop, it offers internet banking, a Visa electron card and you can pay in at any post office and withdraw from most ATM's. I was completely honest at the start and they were lovely. If you dont have any debts with them of course.

Good luck.

[Viki.W]

Yeah Til, trust me too! I thought I was one step ahead changing from tsb to hsbc only to have to change AGAIN!

[Til]

Yeah it's a right pain - plus having to change where work pay my wages go again is bound to make them think something is not right - oh well just another challenge to face I guess!!! [8D]