First Direct or Smile ?

[Endsmeet]

Hi,
I am a complete newbie here and need some advice please.
I am into the final stages of an IVA, I've signed documents etc and now I need a new bank account.
About a month ago before I entered into discussions concerning an IVA I opened a First Direct current account with no overdraft or C.C., just a debit card and cheque book.
At the same time I opened a Smile current account, again with no overdraft, just a visa debit card and cheque book.
Both accounts are now up and running so to speak
I was intending to use my First Direct account as my living account and my Smile account as my paying out account.
But reading around this forum it appears that I will be expecting a letter from 1st direct saying that my account will be closed because of the IVA ( if it is accepted by creditors that is )

Is this true even if they accepted me a few weeks ago?

Also is my smile account 'safe' from this action?

If it is I will transfer my wages etc over to Smile straight away to avoid any future problems like giving notice to work for cut off dates for salary pay etc

Thanks in advance for any advice.

[MelanieGiles]

Do not rely on bank accounts held with First Direct post-IVA. They will generally ask you to make other arrangements. I believe that Smile are part of the Co-op Bank, and they seem very supportive of people in financial difficulties.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[Endsmeet]

Hi,
Thanks for your reply.
I thought as much by reading other postings just wanted to hear it for myself so to speak, I will make sure that everything is directed towards my Smile account asap

Thanks Again

[iva experts]

I agree with Melanie, the best course of action would be not to deal with First Direct if possible.

Many times people on this forum have posted that they have received a letter from HSBC/First Direct giving them 30 days until the account is to be automatically closed.

Better to be safe than sorry.

Best Regards. IVA Experts

[Oliver]

First Direct seem to have been closing accounts of those who are in IVAs regardless of whether money is owed to them or not. I would continue to bank elsewhere as a precautionary measure.

Best Regards
Oliver

Thomas Charles and Co Ltd.
Experts in personal debt solutions.
Read customer feedback at: www.thomascharles.com/about_us.asp

[Endsmeet]

Hi,
Again thanks to all you have replied, I have now switched over my D.Ds and Salary to be paid into my Smile account.
So everything's up and running /waiting for my wages to be paid in and my IVA can proceed once they know that my moneys 'safe' so to speak.
Thanks again

[Adam Davies]

Hi Endsmeet
Good luck with your IVA proposal,do you have a creditors meeting date yet ?
regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[Endsmeet]

No, not yet.
I have signed the proposal forms etc and also had a conversation concerning the R3 form, have returned all documents.
Just waiting for my salary to be paid in to my new account and ensure that its 'safe' and then they are going to proceed with the next stage which will be the creditors meeting date etc.

[Adam Davies]

Hi
Well you seem to have it all under control.
Good luck

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[Endsmeet]

Hi Andy,
Yeh, I've tried to do everything right at my end such as token payments/letters/phone calls to creditors (all 9 of them) etc, just waiting for my salary to be confirmed and then the wheels will be put in motion so to speak.
From then its out of my hands so fingers crossed.
Thanks for your best wishes

Cheers