Hi - i am just about to start an IVA. To get some money to pay some bills, i have been cashing cheques with 2 different companies. Each month, to avoid them going to the bank, i was able to 'roll them over' by paying the interest. I have no decided to stop this and let them all go to the bank this month. There are about £1200 worth so when i go £1200 overdrawn i will add this to my overdraft on the IVA. Can the bank refuse the cheques for any reason if i go so far overdrawn? i don't have the money to buy them back and just want them to clear in my account so i can be rid of paying these too to make a fresh start?
If you have sufficient overdraft facility, and are operating your bank account within correct terms, and can afford to repay the overdraft under contractual terms, then there is no problem in asking the bank to present the cheques - but the ultimate decision clearly lies with the bank itself.
Hey n958g, you will have to include them as creditors on the IVA. What overdraft limit do you have at your bank? If these cheques come through and it's going to take you over the overdraft limit then I think the banks can bounce them. You really need to speak to your IP as you don't want to be seen as favouring one creditor over another or increasing your debt with your bank with no means of paying it.
No - Viki is right on this occasion and I am not! Sorry I did not pick up the fact that you are about to enter into an IVA. In these circumstances, you should do as Viki says and provide details of the amounts owing to your IP for inclusion in the IVA proposal.
Sorry for any confision in my earlier response folks! I haven't woken up properly this morning yet!!
Hi - my overdraft is £1000 - it is at this limit now as i have opened a new account. it will take me way over, but the cheque cashing compaines cannot be included in the IVA as they will not hold the cheques beyond the presentation date. My IVA contact said to let the cheques go through and include the overlimit on my account with the IVA.
If you let them go your bank will probably bounce them, regardless of the fact the they are 'guaranteed'.
when you cash these cheques you enter into a short term loan and if they don't get the money when and how they are meant to they will chase you for it like any other creditor. You can include these compnaies in you IVA
