Hi, HSBC are not a creditor. I have spoken to my IP this morning and they advise to have my wages put into new account also they say best to make token payments to all creditors. My present bank, Barclays, hold an overdraft but also a loan account which is due to be paid on 27th. I am worried that they would automatically pay this loan account forcing me over my overdrat limit and thus incurring the wrath that is extortionate overdraft charges and fees. So to avoid this I will be placing sufficient funds to at least stop it exceeding my overdraft limit
Let your wages go into the HSBC account until you have new banking facilities in place. They will close your account once they become aware of the IVA but they usually give you a month's notice to move.
It would be pointless to pay any money into the Barclays account and excess charges etc do not matter anyway unless you end up repaying in full. Keep any excess to use as contingency pot because five years is a long time without any access to credit.
Making token payments is also pretty pointless and would make no difference to whether your IVA is accepted or not. The proposal can usually be drafted within days and circulated to creditors so there is no need unless your IP is slow or you do not supply the required information.
Best of luck with the meeting of creditors but in my opinion it is a waste of money to cover the Barclays loan or make token payments.
Thanks again, glad this forum is here.
I've just had an email from my IP to arrange for an in depth phone call re my application and so this should happen in next couple of days. I am guessing from that, they make the formal notices.
Carring George are my IP and so far, they seems very good and unjudgemental. I just hope it all goes as smooth as it has so far...early days though!
Your case sounds straightforward enough from the initial posting so I am sure you will be fine. 4-6 weeks should be more than enough time for the IVA to be in place and your creditors will hardly have noticed you even missed a payment.
when we started we weren't in arrears with any accounts, just maxed out on everything. Once the IVA ball started rolling we just stopped paying everything. Any charges you incur because of this will all be accounted for in the IVA. Make sure you keep on top of all the necessary bills like mortgage / utilities etc, and the rest of the money keep for a rainy day, as there are bound to be some!
getting there ....
Got there!!
IVA started 27/10/2010
final payment 27/10/2015
CC received 6/5/16
Off the register 5/8/16
we opened a new acciunt with natwest and within a few weeks of iva being approved natwest wrote to us and downgraded account to basic so even though they werent a creditor they were still informed. If you are certain about iva then i would open a basic safe account with coop or someone else who isnt a creditor and who is 'iva safe'. Switch all standard dD and wages to go into/out of new account. Stop paying creditors...even token payment mean nothing once process started and all charges accured will get taken up by the iva. All that money youre paying them could be going into your pocket for christmas now instead.
Welcome! I'd add that if you can, open both Nationwide Basic and the Coop Cashminder. 5-6 years is a very long time to be with the same bank. Should you be disappointed by one you can switch to the other. It may also be a struggle getting accepted for these basic accounts once the IVA comes active. Best wishes
*IVA started Sept 2010
*Last Payment Taken August 2015
*Completion Certificate Issued November 2015
Hi
We moved to Natwest at the start of our IVA process and never had a problem. Dont make any token payments as the process could only take approx 6 - 8 weeks if all your information is correct and any charges for late payments etc will get swallowed up in the IVA anyway. Put aside for a rainy day. Also make sure you include EVERYTHING in your list of debtors. 5 to 6 years is a long road but the outcome at the otherside is rewarding. Good luck.
we opened a coop basic cashminder (cant do online have to call and ask for forms) and a cashplus account (APS), this gives a bank with SC & ACC number and also a pre-paid mastercard for those moments when you need to pay online (better than using a debit card) just load the account up with what you need. Between the 2 of us we had creditors that touched nearly every provider. we delayed opening the cashplus account as it says the funds are held in escrow (or similar) and underwritten by RBS (who was a creditor) this was just incase on some far out extreme they had some scope to seize monies from that account, we opened it a few weeks after IVA was officially started. As has been said elsewhere, if youre going to have a secret squirrel savings account, in the bove example the cashminder account (that you can load at a post office with cash) don't do bank transfers between your official account (e.g. cashminder) in the event you have a draconian firm that likes to think your emergency rainy day fund is money they should be getting hands on.i.e. no proof of transfers on statements...cash is king !
My Blog details, the route I took before IVA, how I choose my firm, equity release advice (year 4-5), challenging the CRA's keeping IVA on credit file once gone from insolvency register
IVA ended August 2015. Would recommend McCambridge Duffy
well just had my first virtual meeting with my IP and they are preparing paperwork to send me. Seem very nice people.
basic figures are income 2150
they propose giving me maximum allowances and worked out living and expenditure as 1800 including car payment each month, which i need as work 24/7/365 shifts.
giving 330 ish to IVA of debt of around 47k
lets see where it goes from here...
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
Thought I would post an update...
I contacted all my creditors this morning by phone, thought I prefer to call them, than they chase me.
Told them all that was having trouble and I have applied for IVA and it is underway. Gave all the reference number and without exception everyone of them were brilliant...at this stage anyway. All have put 30 day stop on accounts and wished me well. They did say I will get a letter to advise of missed payments as this is automatically produced but just to keep them for reference.
One thing surprised me though..Barclays (major creditor) told me they would be prepared to give me a new account, without overdraft facility. so at least I know if I want to, I have a bank up account I can open if any other fails.
IP just emailed and all my paperwork is in post to me for checking and signing....seems to all happen so quick once the ball starts rolling.
That's good news - hopefully it will all work out for you.
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
font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Thought I would post an update...
I contacted all my creditors this morning by phone, thought I prefer to call them, than they chase me.
Told them all that was having trouble and I have applied for IVA and it is underway. Gave all the reference number and without exception everyone of them were brilliant...at this stage anyway. All have put 30 day stop on accounts and wished me well. They did say I will get a letter to advise of missed payments as this is automatically produced but just to keep them for reference.
One thing surprised me though..Barclays (major creditor) told me they would be prepared to give me a new account, without overdraft facility. so at least I know if I want to, I have a bank up account I can open if any other fails.
IP just emailed and all my paperwork is in post to me for checking and signing....seems to all happen so quick once the ball starts rolling.
Re Barclays offering banking facilities - if you open that account with Barclays they would have the right to dip into it and take any money from it, though they shouldn't after the IVA is official do you really want to run the risk and have to fight a long time to get your money back, I would strongly suggest you don't bank any money with any bank that is a creditor or associated creditor.
Last edited by longslog101 on Fri Oct 23, 2015 3:05 pm, edited 1 time in total.
My Blog details, the route I took before IVA, how I choose my firm, equity release advice (year 4-5), challenging the CRA's keeping IVA on credit file once gone from insolvency register
IVA ended August 2015. Would recommend McCambridge Duffy
