Firstly what a great site to find.
Like many others on this site , i have some burning questions.
I am currently looking into a DMP or IVA , which i am recieving advice on.But after my last meeting with CAB , they advised me to open a new bank account for which my salary could be paid into.
This i have put into the pipeline, CAB also advised me to stop all direct debits to my creditors from my currant bank account.
However one of my creditors is my overdraft with currant bank account, and unfortunatley i am unable to stop my next months salary going into my currant bank account , as it is already set up throu BACS < is that the correct term ?>,.
My question is , is it illegal in anyway for me to withdraw my full pay from currant account, to put in new account, even thou some of this is overdraft money !! As this account is part of my paying back plan.
I hope this makes sense, as i dont want to do anything wrong .
Hi Floss and welcome to a great site, where everyone who replies to your questions will do it sincerely.
Firstly let me say look at the many options that this forum offers you, not only very good advice from people "who are" and "have been" in a similar situation to you, also there are professional IP's who make regular visits and answer peoples questions freely, certainly worth asking their advice before you make a definate decision.
I also switched bank accounts and set up new direct debits for things like home insurance, car insurance, water rates etc as soon as I decided that I would apply for an IVA, I made megre payments on all of my credit cards and made certain that no money would be paid into my regular account because I had debts with that bank even thoiugh it meant that my biggest debt would not be paid.
I personally do not think you are doing anything illegal by withdrawing your money in lieu of seeking professional advice.
Good Luck
Last edited by banjoplayer on Wed Jul 22, 2009 11:10 pm, edited 1 time in total.
It is not illegal at all - and it makes perfect sense, as if you are to look at an IVA or a DMP, you will need to effect some budgeting changes and be able to survive without credit.
I hope that you find the site useful in your IVA journey. There are many people on this site who will be glad to help you and answer your questions over the next few weeks.
I beleieve that you are doing exactly the right thing. Withdraw all your money and the overdraft and put into your new account. Cancel the direct debits at your old bank and set up only the ones that will not be include in the IVA/dmp (priority debts like rent, mortgage, utility bills e.t.c. It will be worth speaking to a few companies to see who you fell gives the best advice for your circumstances. I used ClearDebt who were absolutely fantastic for me and they are able to provide both dmp's and iva's.
IVA.co.uk The best place for debt advice. Thanks to Melanie Giles, David Mond, David and J (Elv5) Kallis, Dand, Skippy, Andy Davie
Take all your money out and just pay it across to the new account. Be warned though, that the bank will still put charges on your account for the overdraft.
As well as the CAB, I would ring one or two IP companies. Visit www.iva.com for a list of these companies and reviews. They will give you free and impartial advice as to all the options open to you and the best way forward for your circumstances.
Whilst I don't mean to knock the CAB, they are mostly not trained debt advisors. The companies on here will give you far better advice.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
There is no problem with what you are proposing to do. It would be different if you maxed out all your credit cards on luxuries prior to proposing an IVA but just taking out your wages to pay living expenses is fine.
My first steps ,Thankyou you all ,for replying to my earlier question.I can not describe the reassurance i felt by recieving these posts.
As you can guess im just about to embarke on some difficult descions, and ive lifted my head out of sand , and have filled out an online IVA form for Melanie Giles.
One step at a time.Im sure there will be more advice to follow.Many thanks
Anytime you need advice there is usually someone about.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Congratulations on your choice of IVA Professional, Melanie has so many complementary reports on this site it gives you re-assurance of the quality service that you are likely to receive.
Well done you have made a very courageous step into being debt free.
I look forward to helping you to find the right debt solution to suit your current circumstances. The first step will always seem the hardest, but once you have shared your problems with a professional, things will hopefully begin to seem a lot clearer as you set your future strategy in place.
Another question !
I have canncelled all my direct debits to my creditors with my currant bank.Do i have to now contact all my creditors and inform them?
As i will be disscusing the possibility of an IVA at the end of the week ! Would this be the right thing to do ? Many thanks.
There is no harm in telling your creditors of your intentions with regard to an IVA, but I would seek professional advice first in case it is found not to be a suitable option for you.
