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Posted: Wed Oct 03, 2007 11:34 am
by pip
If I decided to go ahead with an IVA would my overdraft facility be withdrawn. Would I be able to stay with the same bank. How difficult would it be for me to open an account with a different bank.
Posted: Wed Oct 03, 2007 12:02 pm
by emma_t
Hi
I am going therough with proposing an iva and have included my overdraft into this £1,300 with hsbc as I have no realistic means to pay it back
What you need to do is open another bank account, which is not connected to any of your creditors, this account needs to have no credit facilities, for example an overdraft. If you enter into an iva you undertake to not obtain any further credit for the duration of the iva and an overdraft is considered credit.
I opened my new account before i was late with any payments to creditors and pre and discussions regarding an iva so still had a 'good' credit rating, so have managed to open a standard current account with a visa debit card. I have chosen the coop as they are not connected to any of my creditors.
Posted: Wed Oct 03, 2007 12:11 pm
by aguise
HI Pip
Your overdraft would be included in the iva, though if not used and no debts with the bank then you could keep the account but you would not be able to keep the overdraft as it is considered a form of credit and none is allowed unless your IP agrees to it, also some banks are closing accounts of those in an iva or bankrupt so best to be aware. There are accounts avaliable you would just need a basic ac and as emma says not connected to any of your creditors. If you do a search on here lots of posts should come up giving info.
ang
Please visit my blog at
http://aguise.blogs.iva.co.uk/
Posted: Wed Oct 03, 2007 1:03 pm
by pixie
Hi Pip
if you are seriously considering entering into an iva, you need to make changing your account a priority if you are currently using the overdraft. Once your next wage goes in it will be eaten up with the overdraft.
They take a few weeks to set up. When I first sought advise my wage had just gone in and I was advised to withdraw £100 to live on till I could set up a new account before the end of the next month.
I felt like I was stealing just withdrawing that as I knew the overdraft was going to be included.
Pixie