Hi, I am considering an IVA to get out of my debt problems, but I curently have a joint account with my partner and I don't want her to be a part of, or involved in the IVA (individually she is in a strong financial position). Is it possible to do this? or should I open a new bank account for myself?
If the joint account is with a bank to whom you owe money you should have your name removed from it or open a new joint account elsewhere. It would be better to have your own account anyway and you could pay into the joint account what is needed to pay your share of the household bills. You could pay your individual commitments from your own account.
There is a danger that your partner could be affected by having a joint account with you should she apply for any credit facilities herself. She could not really disassociate herself financially from you when she has a joint account.
Welcome to the forum. When you open a bank account make sure it is not associated with any of your creditors and it is not one of the banks who are known for closing accounts if you enter an IVa. There are plenty of basic accounts to choose from on the high street that will let you have an account and do an IVA.
Whomever you choose speak to to get advice will tell you about this anyway. Best to try a couple of companies to compare what you are being told.
Regards,
Regards, Tina Shortland, Debt Advisory Manager for Melanie Giles at Debt Advice TV.
If you’re looking for effective debt related information, articles and news, then go now to our on-line advice service at www.debtadvicetv.com
If you’re ready to ask us for specific advice or help, then get in touch at www.call-me.debtadvicetv.com so you can start to free yourself from the stress and anxiety of overwhelming debt.
Do you have any other debts with the bank where you have your joint current account? If not then in theory you could continue to use your joint account and it will not affect your partner in any way.
However, if you do have other debts with the same bank, then at the very least you are going to have to take your name off the account and start using another one. Otherwise the bank could dip into any funds in the current account without your agreement.
You also need to consider whether there is currently an overdraft being used on the account. If so, you are unlikely to be able to take your name off it until it is paid in full. This debt would have to be included in your IVA so your partner would remain liable to pay it.
The Natwest Step Account is a good choice as long as you are not attached to them in anyway currently.
regards,
Regards, Tina Shortland, Debt Advisory Manager for Melanie Giles at Debt Advice TV.
If you’re looking for effective debt related information, articles and news, then go now to our on-line advice service at www.debtadvicetv.com
If you’re ready to ask us for specific advice or help, then get in touch at www.call-me.debtadvicetv.com so you can start to free yourself from the stress and anxiety of overwhelming debt.
Given this, you are both going to have to open new accounts with new banks i'm afraid. Also you need to make sure your partner is aware that you will have to include any overdraft debt from the old account in your IVA and that she ill then become liable for 100% of the overdraft.
As Tina has said, the NatWest Step account is good. I also like the Co-Op cash minder as they give a debtit card with this account as standard.
Hi David - it is a scarry process, but well worth going through to have the weight of all those letters/bills coming through the post. We are 15 months in to our IVA and I can't say its been easy but I do actually sleep at night now and know that in 4 years we will be debt free.
We use to bank with nationwide (who, coincidentaly were the only creditor who voted against the IV
A), We opened an account with Natwest and I have to say they have been brill. I check our account every day to ensure that we always have sufficient funds to pay our bills.
We did our IVA through Debitlife boat and I cannot recommend them highly enough.
Hi. If the overdraft is not too large, I would be tempted to stop making payments on all debts not associated with the bank and pay off my half of the overdraft (so my partner isn't left wholly responsible). Then I'd take my name off the joint account and open a new one which isn't associated with a creditor. Avoid HSBC and First Direct like the plague as they will close an account once the iva is up and running. This way your partner shouldn't be affected too much.
Stopping payments would lead to lots of calls from creditors but they can't influence the outcome of your iva, make you bankrupt or repossess your things...so stuff them, your relationship is what counts!
You may find that the current bank won't take anyone off if there is an overdraft as they will be wanting their money! Even ff you pay off your half of the overdraft, it will still be included in the IVA and your partner will still be responsible for the whole of the remainder.
The Co-op come highly recommended for a basic bank account.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Wow! thanks again for all the kind words of advice! I'm still a bit confused over a couple of points, but I'll save those for the IP rather than over-extend my welcome here!
One thing though, there seems to be some conflicting information on whether the Natwest step account offers a debit card. One website states there is a Visa Debit card, the Natwest site is unclear, and the implication from one of James' replies above is that a debit card is not automatic with the step account. Obviously I realise I will face significant restrictions under an IVA, but having a Visa Debit card really would make life a lot easier...
You could also try the Nationwide Cashminder account as you're not yet in an IVA. I have one which was opened pre IVA and that carries a debit card.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Hi again, sorry I have another question if I may? On Melanie Giles' "IVA in 7 steps" there is a line about "information regarding how you got into debt". How important is this? and are there circumstances that creditors look less favourably on?
We all have to put down how we got into the position we did. For myself it was spending money on cars, holidays, clothes, consolidation loans and then running the cards back up again.
You have to write this down but unless it involves regular gambling I don't think anything is looked on less favourably.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
