www.iva.co.uk

Hi

I have had an IVA proposal accepted two weeks ago, one of my creditors is Lloyds TSB, where I have a £9000 credit card debt. They voted to accept my proposal.

I have a Lloyds TSB current account and so my IP advised me to open a new account with another bank for my salary to go to, which it has. My IP told me that Lloyds TSB might attempt to grab any funds that I have, and so I basically emptied my account.

I have a £100 overdraft facility with them (which was rarely used) but for better or worse I drew out to almost the maximum overdraft just in case Lloyds TSB would choose to seize those funds.

I am now aware that they may choose to close my account due to my IVA. I have the funds to restore my account to zero (clearing my £100 overdraft) based on funds I have set aside, but I am loath to enter those funds into my account in case they're grabbed by my Lloyds TSB credit card debt. Can anyone advise please? [:)]

You should not have created another debt by drawing up to the overdraft limit - so I would get that paid off and start to use the other account asap now. If they take money from your account to pay the credit card, the bank will then be just robbing Peter to pay Paul, but they will soon realise that there is no point.

I imagine that the money would be used to restore your account to zero status. The bank won't take them for your credit card debt no you are in an IVA. They cannot take money to offset against loans once it is approved.

Pay the overdraft off, as you are not allowed to have one in an IVA.