Question re: savings under an IVA

[cr15py]

This is probably a silly question, as I can't see why there would be a problem.

Wages go in to my account on the 15th of the month, most of my bills come out on the 1st of the month (I used to get paid on the last working day of the month), is there anything to stop me putting the money from my bills into a savings account until the bills come out? Obviously, if I can get interest on the money at 5%, it's better than 0.5%!

[debbiw]

No Cr75py, there's no problem with you doing that

[cr15py]

I didn't think so, but it's always best to check!

[frequentflyer]

I was told by my IP that I was not allowed to have any savings when Im in an iva.
I wanted to do the same thing, I have a current account with a flexible savings account at the same bank...it made sense to me to deposit the money I was putting away for quarterly bills like electric, gas and phone along with car maintenance and road tax insurance. That way I could budget better than leaving it all sitting in my current account.
I was quite shocked when I was told that this was not allowed.....anyone else been told this???

[cr15py]

I have been told I can have one. Otherwise, even £10 left at the end of the month that you haven't spent would theoretically be savings.

I assume your IP means you can't put, say £100 aside as specifically savings, but any money you don't spend within your expenditure allowance is yours to keep, and therefore do with as you want I assume?

[MelanieGiles]

How ridiculous for an IP to say their client cannot have a savings account. This is one of the best things you can do to make sure you have enough money to pay for things which are not generally payable on a regular monthly basis such as your car tax.

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

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[frequentflyer]

Melanie,
Interesting that you say that, when I say my IP said that, it was actually the person dealing with my case at the Insolvency Company.
At the time I thought it sensible to budget using this account as it avoids spending money that you have budgeted for other bills....then when I mentioned it I was shot down in flames and told that it is basically NOT permissable for anyone in an iva to have a savings account, so I promptly withdrew all the money I had deposited already. There was also the suggestion that questions would be asked why sums of money were being withdrawn from one account and placed into another when the IP reviews my bank statements...now I am totally confused!!

[MelanieGiles]

That is rubbish - and I suggest that you speak to your IP directly or go ahead and open up a savings account. So long as this is just used to manage your money, and you are not left with thousands of pounds in it at the end of the IVA, they do not really need to know whether you have one or not to be frank.

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

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[frequentflyer]

Thanks for that...I will take your advice!

[Endsmeet]

I can confirm what is being said here, I entered into an IVA 4 months ago and have opened a websaver account with Halifax.
Its comes only with a cashcard and my IP confirmed that as long as no credit is attached to this or any other account that I may open, it is perfectly acceptable to have one.
I am in the fortunate position that my T&Cs of my IVA allow me to keep any overtime that I may earn so that plus my future outgoings such as car tax/insurance etc go into the account on a monthly standing order from my current account.
I also find it very strange that you are not allowed to have a savings account to hold your monthly allowances[?][?][?]

'56 and counting as of 21st November 2007'

[Adam Davies]

Hi
Quote" when I say my IP said that, it was actually the person dealing with my case at the Insolvency Company"
This is all too often the case with larger providers,ill advised staff making incorrect statements.
You will notice on this forum that we often say make sure that you speak with your actual IP.
Regards

Andy Davie
IVA.co.uk Spokesperson and Website Manager

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

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

[emma_t]

I think its vital to have a seperate savings account for you to save allowances for car tax, insurance and other bills.
It is so much easier if you can transfer when your wages go in and then you know what you have left to spend on essentials and can budget accordingly, I have found mine a godsend
Emma x

[Martin2011]

Absolutely agree with the advice to speak to your IP directly... Has reminded me of when I was in the initial stages of establishing my IVA. An assistant as CS, completely out of the blue was querying my proposed I&E figures, stating that I hadn't taken account of my pension. I was a tad confused and still don't really know whether they were right or not in telling me I had to stop paying into it. In effect it's a subsidised pension so I pay in 3% and my employer pays 3%.... if I'd stopped paying, so would they, which in effect would have meant taking a real terms pay cut for 5 years.....with the added problem of not having a full pension available at the end of my illustrious career (as if), or any redundancy protection along the way. Had never really thought about it previously, but being told by this guy that I had to stop paying really upset me, so I asked to speak to my IP. When he became available and I expalined my concern, he said it wasn't a problem and he'd expalin the situ to my creditors..... Proposal was accepted, so I guess they were happy with it!!!

On savings accounts....definitelyI've found that to be like a new hobby, certainly something I'd never done before...now it's a great challenge trying to underspend on some things whenever possible to maximise the amount that can be moved accross.... Suffice to say that all to often something unnexpected crops up to bite into the savings (like Christmas) and MOT's, but at least it's there....managed to get it up to nearly £600 in the summer, before a mechanic decided he'd like it in exchange for a tyre and a piece of paper!!!

Also, if you ebay trade, paypal do a good job of holding cash for you....can't be moved for free unless over £50, but a great place to hold rainy day money acquired through selling off unwanted items etc...

Martin