Please help - a few questions!

[Maverick]

Hi there,

This is my first post so thought I would say how fantastic this site is! [:D] having read through some of the posts I now have a little more of an idea on how to resolve my situation, and a great deal more information on IVA's! Everyone seems really friendly and helpful and its nice to know that im not the only one suffering from debt problems and hopefully will be able to see some light at the end of a very dark tunnel! [:(]

I have read through some of the guides/forums etc but just have a couple of questions:-

1) If I take out an IVA will my direct debits stop?
2) If they do - is there anyway around this as I pay £180 for a lease on my car - obviously I wouldnt want this to stop as I need my car for work etc..
3) I've read that you need to set up a new account with a bank previous to taking out an IVA - as my main account is with Barclays and its mainly them that I owe money to would they stop my account?
Will that mean that my monthly wages would need to go into a different account and that is the reason for setting up a new account?

Hope someone can help?
Many thanks

[Sensible77]

Hi, Maverick.

The reason to change bank accounts is so that Barclays can't take your salary and whatever else is paid into your account to offset against what you owe them.

Your direct debits and salary can be transferred to your new bank account. I opened one with the Co-Operative Bank via their website in a few days. You must make sure that your new bank account is not associated with any of your creditors and does not provide an overdraft facility.

[Maverick]

Thanks very much Sensible for your quick reply! I was worried because I read somewhere that all direct debits would have to be cancelled prior to getting an IVA but if you can transfer them over and carry them on then thats great! Looks like ill have to set up a new account then!

[jpj]

The IVA may stop some of your direct debits...They demanded I stop my gym membership and pension direct debits (but it depends on your creditors what they pick n choose!)

[MelanieGiles]

Hi Maverick

You will generally transfer your essential direct debits to a new bank account, opened with a bank to whom you owe no money.

The car lease payment is reasonable to continue with, but do check the terms of the lease that this does not terminate upon entering into a financial arrangement with your creditors. Some do!

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

[Soulgrowth]

Hello Maverick and welcome ... this is a brilliant supportive environment!

When I was entering into my IVA I changed from Lloyds TSB to Nationwide who have been terrific and their online banking is a really clear system. My car was a lease hire as I am self employed and I was allowed to keep it.

Good luck

Debbie

[BlueShoes]

Debbie
Did you owe Lloyds any money?
We bank with LLoyds TSB and they are not a creditor. If the IVA succeeds, can we stay with them?
Blue

[jue]

hi blue

i bank with lloyds tsb and i was told directly by them that i could still bank with them regardless of being in an IVA.

jue.x

[Maverick]

Thank you so much for all your replies - it looks as though you are ok to keep your account if you do not owe that particular bank any money but if you do you need to set up a new account - please correct me if im wrong!

Bad news is it looks as though my lease agreement on my car will be terminated as soon as I enter into an IVA even if the creditors agree that its ok to pay - dont know what to do as ill have no car! and cant/wont be able to afford to get one!

I also have another question - how strictly is your account monitored? if you have money left over at the end of the month will this be taken and payed against your creditors? in theory not being able to save any money in an IVA? Just wondering as this happens if you get a pay rise etc or is the amount you agree a fixed amount?

Any help will be much appreciated

[MelanieGiles]

Could you switch to a hire-purchase agreement instead? Or ask the leasing company if they would be happy to allow you to continue with the agreement.

Your account will not be that strictly monitored, but your IP will review matters with you at the end of each year. If they feel that you can afford to pay more, they are duty bound to seek an increase - but of course you have to agree to pay it as well!

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