number of creditors query + bank accounts

[just_baz]

Hi all, a few questions for those in the know as i havent applied for an iva yet but its looking more and more likely. I am married with 3 kids, I am working full time and earn approx £300 a week and my wife part time, although all debts are in my name only and have managed to accrue a debt of about £22,000 these are currently
Natwest Loan - £9000
Natwest Overdraft - £2500
Natwest Credit Card - £4000
Lombard Direct Loan - £1500
Virgin Credit Card - £4000
I havent missed any of my payments on credit cards as yet although have been late a few times and scraped under the minimum payment a couple too.
so here's my questions.

Do the Natwest debts count as 1,2 or 3 creditors?if the overdraft can be included in an iva.

can I keep my existing joint account with HSBC which has no overdraft on?

How will an iva affect my partner?

We are currently paying £778 in bills and a further £580 on loans/cards a month, this doesnt include petrol, food, clothes etc
would I qualify for an iva?

thanks Baz

[MelanieGiles]

Hi Baz and welcome to the forum

Your NatWest debts will be treated as three separate creditors, and the overdraft will need to be included. If you do not owe any money to HSBC you can keep the account.

Your IVA will affect your partner in that your finances will be separated out, and she will need to pay a share of the bills in the same proportion as her earnings - and in certain circumstances, your creditors may also wish to have her disposable income offered as well as your own.

To find out whether you would qualify for an IVA, and also be made aware of other options available to you, it is best to seek direct advice from an insolvency practitioner which is generally offered free of charge.



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

[Skippy]

Be careful with HSBC - they have a policy of closing the accounts of people in IVAs.

Yesterday is history, tomorrow is a mystery, today is the present - a gift to make the most of.

View my blog at http://skippy13.blogs.iva.co.uk/

[MelanieGiles]

Good point Skippy - I had forgotten about that!

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

[BlueShoes]

Hi just baz
Why not fill in a form on Melanie's website for an initial response? We used Melanie and her team and we would strongly recommend them to anyone. They were really great.
Good luck
Blue

[whichwaynow]

I was with First Direct (part of HSBC) who was not one of my Creditors as soon as I told them I was go for a IVA they gave me 30 days notice to close my account. Only went with them as a fall back. My orginal bank Natwest have been very good. They were one of my biggest creditors. I told them What I was going to do and apart from 1 call from their CC dept the bank who I had the loan with did not contact me at all. In fact they have left what little bit of money there was left in my account. And they accepted my proposal today.

[lizziej]

Now I am worred ! I have recently opened a First Direct account due to entering into a potential IVA - should I now look to change again???? I was with Natwest, but like you I owe them huge sums of money so needed to be confident my secured loans would be paid with utility bills while I wait patiently for the iVA to go through (I hope)........should I change accounts again??

[MelanieGiles]

The HSBC group (of which First Direct is a part) do have a policy of closing people's bank accounts after IVA's. Barclays, Nationwide and Co-op always get good support on this forum, so I would give any of those a try.

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