IVA and Savings accounts....

[OrdinaryWorld]

Hi all,
First, I'd like to say how invaluable this forum is...creating a community of people who can openly and objectively share their financial issues with each other AND IPs in a way that reassures debtors and helps them to make fully informed decisions.

I was a frequent user of the forum back in March-July 2007 when my ex-partner and I hit financially hard times, mainly due to going too far with the extending the house and accuring ridiculous bank charges. We were £115k in debt and having consulted the community here and one of the excellent IPs, we entered into an IVA now paying 44p/£.

Life in an IVA has not been easy..it's been difficult..although the IVA has proved to be very flexible for dealing with serious life events (many thanks to my IP). For example, since July 2007, my partner of 13 years and I seperated (we have two children), my car went up in flames on the motorway, my health has deteriorated (endocrine issues), I've been burgled twice, I've moved twice (out of the family home to rented, back in to family home as ex partner moved out) and about to move out again..so a lot of stress but taking what life has to throw and still moving forward....okay enough of the sob story (very cathartic though I must admit)...I do have a query!

We are not required to release equity from the property until the first quarter of 2011. However, we have decided to sell now (well my ex wanted to and I saw argument) due to state of housing market. We now have a buyer and have agreed a price (which will release less equity that required but we are working with IP on this issue). What we would like to do is store the equity in a high interest savings account so that it will grow a little more before we submit ALL of it to the IVA.

My question is, is it possible to get a high interest savings account whilst in an IVA? Afterall, we would not be asking for credit.

Best regards
Jon
ps good luck to those in an iva and hope you are coping well and I'd be interested in your two top survival tips. Mine would be: pay any 50% increase into IVA asap (!!) and keep your eye on Martin Lewis's MoneySavingsExpert website.

[MelanieGiles]

I am sure that you may be able to get that sort of account Jon, but I feel that your IP will probably want you to pay the monies over as soon as they are released. Am sure you are already in discussions over this.

[OrdinaryWorld]

Ok many thanks Melanie for the quick response and clarification. It sounds as though the Savings account idea may be a no brainer then - we just thought it would grow the cash a little and help to maximise the release.

Yes we are already in discussions with our IP over this

Best,
Jon

[Skippy]

Good luck with the rest of your IVA, and I hope the house sale goes smoothly x

[OrdinaryWorld]

Many thanks Skippy. I've been following your blog with interest and great to hear you are on the home straight.

Best wishes,
Jon

[needmoremoney]

Interest rate is so low now, and will remain so the incentive for creditors to take the EQ release money later and get [more] isn't so attractive. 5% is the most you will get and chances that money will need to be locked in for 3 to 5 years with limited withdrawals. With the amount been taxable as well, you can see why handing the money over is the best choice.

[OrdinaryWorld]

Good point needmoremoney! We will pay it directly into the IVA - glad I checked with the forum.

Many thanks for your kind words H - yeah it feels good to be a few years in and I'm really determined to see this through to the end. Great to see you are on the home straight with only 9 months away from debt freedom - hope it is going well and that you make it to the finish line.

Best wishes,
Jon

[Adam Davies]

Hi Jon
Good to see you on the forum again
Regards

[ordinary_world]

Hi Andy,
Many thanks, its great to be back and connect with people in a similar situation. Im just trying to gatecrash the party on 21st Nov!

I hope all is well with you and congrats on continuing to administer an excellent forum!

Jon

[Skippy]

It'll be good to meet you Jon!

[OrdinaryWorld]

Many thanks H and Skippy! I will definately be attending now that I've managed to secure a room in the County hotel. It will be an absolute pleasure to meet you all and share frugal tips!

Jon
Jon

[OrdinaryWorld]

Andy,
I've noticed that my avatar sometimes recognises my old posts from 2007 and then on other occasions it doesn't. Is this a bug or is the system still unsure of me?

Jon

[Skippy]

Do you have 2 different logins Jon?

The reason I'm asking is that although you have the same avatar your user name shows up as OrdinaryWorld for some posts and ordinary_world on others.

[ordinary_world]

Well spotted Skippy! Doh, silly me! Well it has been a long time.

I'll just use Ordinary_World from now on as it includes my past posts.

Best