www.iva.co.uk

I have spoken to my employer today, to see if there is any possible way of them paying my salary into our new bank account for this month.

They originally told me that it would have to be set up for next month, as the payroll is outsourced to another company, and would not make the deadline for this month.

After speaking to them today, they have said that they will try to get it set up for this month, and will let me know tomorrow.

I am in the process of transferring our essential direct debits to the new account, and my brother is willing to lend me enough money to place in the new account tomorrow to cover the all the direct debits that will have been set up by the end of the month.

If my wages go into the new account, all well and good and I will repay my brother as soon as.

On the other hand if my wages get paid into the old account, would it be ethical of me to go to the ATM over a couple of days and withdraw the total amount of my wages that were paid in, as this would leave the account around £800 overdrawn.

Or should I just take out the current balance of the account, bearing in mind I have two loans with the old bank, and they will probably take out the payments for them, despite the fact that I will have cancelled the direct debits by then. I have not cancelled the direct debits for the loans yet, as I do not want to alert the bank to my intentions before I attempt to withdraw my wages out if I have to

I know the outcome would be the same if my wages were to be paid into the new account, but it just feels a little bit wrong doing it this way, and wondered if this would go against me in any shape of form when it comes to creditors voting.

Hi

If you are going for an IVA it might not look good if you went over drawn knowing you could not pay it back. My advise is to play it by the book from now on. Good luck

You should be fine transferring the money across, your not taking a new line of credit with no intention of paying it back. Make sure all your priority debts are met (Mortgage, council tax etc etc etc and you have enough to live on for the month), if there is anything left at the end and it would make you feel better leave it in there, but it wont make any difference and it wont make any difference to your creditors or their decisions.

If your feeling uneasy about it contact your IP as they will be able to advise if there are any real problems.

I take it that if your salary is paid into your new account the old one will be overdrawn anyway? If so I wouldn't have thought there was a problem transferring the money across - you've got to have money to live until next month!

I was thinking along the same lines Skippy.

If my wages go into the new account, the effect on the old account will be the same as if I were to withdraw the money myself.Same outcome, different method, but for some reason doing it this way does not seem right.

Hopefully my employer will come good, and take the decision away from me by paying my wages into the new account at the end of the month.

I don't think you will have a problem either.

Sooner or later that account will go overdrawn anyway, so don't worry.

Be prepared though for them not to cancel DD's for their loans if you try to do so.

HSBC wouldn't do it for me.

You are not doing anything wrong here - just making sure that you have sufficient monies left to pay for your essential household expenditure next month. Noone is going to criticise you for this.

Thanks for the replies.

One other concern is that my eldest son who is seventeen has an account with our original bank, would they be able to take funds from this?

Also his younger brother has a building society account with a fair bit of savings in, to which my wife is a signatory on the account, would this come under scrutiny during an Iva, as I would not want them to lose out due to our misdoings.

No, they cannot touch your son's account. I presume it is solely in his name?

I don't think there will be a problem with the other account, just check with your IP to be on the safe side.

Yes he has a basic bank account, which is solely in his name.

I think it started out as a young saver account, but they upgraded it to a basic bank account when he reached sixteen.

He should have no problems then.