www.iva.co.uk

Has anyone had experience of a bank taking money from a current account to offset against a credit card e.g. if you had a LLoyds bank account and a lloyds credit card? Has anyone actually stayed with their original bank or does everyone in a DMP or IVA change bank accounts??
Why is it when you are in debt you feel in control one minute and completely out of control the next?[:(]

I changed account as soon as I read about it on this forum. I would have worried about it too much if I hadn't. I'm sure Jan had her account frozen and some money taken.

Hi Fudgelover.I think it's recomended to change bank account if you have credit with your current bank.My origional bank was HSBC.I was in the process of changing over but there was one week when husbands wage still had to go in there.IVA had not been agreed at this stage.HSBC was my largest creditor and they were aweful with me.They refused to give me the wage back.I was attempting to explain they would be getting thier money twice if they took it.They weren't happy and eventually Clearstart intervened for me.Aweful and humiliating.They made me go into a public cubicle and made no attempt to keep the conversation confidential.I was mortified and it was the closest I came to begging.
Yes debt does make you feel very out of control.Felt like this before IVA and even now.Always having to consider money has it's blessings, but I can very low sometimes.Cat

Is it hard to change bank accounts when you have debt problems though and can you just have a normal bank account i.e. current account or do you have to have some special account?

There are banks that will give you just a basic account with a debit card.
Lots on the forum use co-op cash minder.
Hubby had his through halifax.

No overdraft, just a basic account.Some people are allowed cheque books, others aren't.I have two basic accounts now.The first one I already had so just had salary paid into it.I then opeded a coop cashminder account.You just get a card and they accept insolvancy and bankrupcy too.Cat

Cat your story about HSBC is awful I am so sorry that happened to you. I am such a scaredy cat and would have been an absolute mess if that happened to me. We are doing our own DMP and have managed really well for the past 31 months but needed to take a payment holiday in September ( the first one and I hope only one) and all the fears and worries I had in the beginning have all come rushing back because it went pear shaped on us. We don't want to go into IVA or bankruptcy as we are currently awaiting an inheritence which may allow us to make some F&F payment offers. The waiting to see how much we acutally get from the inheritence and the fear of what the creditors may do in the mean time is actually making me feel quite ill. We are making good monthly repayments( not just token payments) to all our creditors so do you think they will be patient with us?? What has your experience been?

Banks generally have an automatic right to offset credit balances against debit balances, and that is why it is important to change banks as soon as you decide to enter insolvency proceedings to protect your future lodgements and salary being grabbed.

We strongly advise all potential clients to ensure their income is paid into a current account disconnected with any of their creditors.

Very rarely someone chooses not to. Unfortunately this almost always ends with funds being taken by the bank to meet other credit arrangements that otherwise would not have been fully repaid.

Changing accounts to a bank unconnected to existing debt balances prior to entering into any debt solution is vital for protecting the money needed to meet day-to-day needs.