direct debits and banksadvice please

[rochelle123]

Hello, when you have an iva are you allowed to still have direct debits come out of your account eg for rent. Also how does it work for car insurance as last year i paid it in full (on credit card of course!!) but next time i will want to start paying monthly- would this be considered taking credit?

I also wanted to know about my bank account, would i have to shut this down and start a whole new basic one or can i keep the one i have? (without the huge overdraft). my bank is currently with lloyds tsb as are some of my debts so would i have to move to another comapny aswell?
thanks in advance R

[Adam Davies]

Hi and welcome
Yes you can still pay via direct debit and you can still pay your insurance monthly,no problem.
You will have to open a new account with a non creditor,the reason for this is that the banks have a right of offset between accounts,so if you owe on a Lloyds credit card thet can take the money for this from any related account in your name.
They would not be able to do this once you are in an IVA but they will probabaly close any account that you have.
Regards

[rochelle123]

thanks.Great re direct debits. Can anyone recomend a good high street bank that does a simple account, i have been with lloyds tsb since i first opened a bank account!!lol

[Jan01]

I have been in an IVA for 3 years+ and not had any problems with setting up new direct debits or my existing ones. I have changed my car insurance and pay by DD and have pay for my prescription pre payment card monthly and not had any problems

Jan

[Mak6]

Hi

We set up a Co-op Cashminder account before the IVA proposal. No overdraft (which is'nt a bad thing!) or cheque book but have no problems setting up direct debits or standing orders and
get a Visa Electron card which most retailers now accept as a debit card.

You could otherwise open a Post Office Account but I don't think it has as many methods for payments as the Cashminder Account.

Hope this helps

Mark