www.iva.co.uk

I am in an IVA my partner isn't.

When we opened up our joint account (as IVA was going through) we asked for no overdraft. We were given one and asked for it to be taken off which it was but it kept reappearing even though I am in an IVA. My Partner is the lead name on the account and is solvent and has nothing to do with my IVA.

I asked about this on here and was advised as long as we don't use it "keep it" as it is another thing to have to help build my credit score when IVA is over.

To cut a long story short, my partner used the debit card the other day for petrol without realising we only had £15 in the account left. He put £20 of petrol in the car and now we are overdrawn by £5!

I get paid in 12 hours time but I am concerened as to whether my partners mistake has meant that i have breeched my IVA!

It was an honest mistake and I feel like asking Santander to remove it once and for all as I am so worried!

Can anyone advise what I should do? What will happen?

My boss has kindly given a tenner to put in the account to bring it back up into credit!

I could murder my my boyfriend right now! I have done so well for the last 26 months one month still having £33 left and this month I feel like it is all going to come crashing down!

Hi, Don't worry about it. It's an oversight and your account will be back in credit very shortly. The best thing to do would be to get the overdraft removed and it won't happen again. You're not in breach of your IVA.

While I agree with Claire that it is not a problem I would not cancel the overdraft. It offers protection for things like this and the smallest unauthorised overdraft can incur huge fees and costs.

Relax and do not be too hard on your boyfriend.

Thanks Clare and Michael!

I will try not to!! I think it was the shock of seeing a "-" figure on the screen!! I nearly choked!!

It's strange how going into an IVA can change you! I was always in an overdraft (pre IVA) and did not think it was a bad thing! Now the thought of owing someone money sickens me!

I have been invited on a hen do to Spain next year and am paying back to my friend monthly from my contigency fund and I hate that I owe her!

Oh well! Nearly half way!

Thanks for both of your advices

I agree with Michael, I would leave the overdraft in place to prevent any unauthorised overdraft fees.

Thanks for the advice Skippy!! I think I will leave it be for now! I would like to keep it in place if possible. I never understood why they kept giving it back to us what with me being in an IVA but they did!

This is the first month that I have ever "emptied my account" since Oct 2008 and what with xmas coming up and cut backs at the Supermarket i have made I was hoping to have a little bit left over but hey ho!!! Life goes on!

26 months down, 34 to go!

Hi
Does this mean that even when you re in an iva and you are the sole acount holder, having an overdraft facility without using it is no breech of the iva terms and conditions?

Really need to know[V]

Thank you


Mrs R x

Ideally you shouldn't have an overdraft facility but it won't breach your IVA.

Oh thanks for that! 12 months ago, I set up a fresh bank account 4 months before entering into my iva and its a full bank account that comes with an overdraft. I havent't used the overdraft and I certainly don't have the intention to use it as i'm too keen on completing my iva.

However, I'm very reluctant to remove it as it gives me a sense of normality and I heard it would be good for my credit rating in the future. Having said this, I don't know if my bank is aware that i'm in an iva as my iva payments come out of my partner's account. Also, the bank statements that I submitted to my IVA company leading up to the creditors meeting actually show that my account has an overdraft facility all be it one that I never used. I ve been in my iva for 8 months now but I haven't been pulled over this unused overdraft by my IP- it wasn't mentioned although of course, ideally we re supposed to have a basic bank account while in an iva.

I believe the overdraft facility is due to be reviewed in September 2011, I would imagine that this comes with a credit check. Do you think my bank (LLOYDS) will then automatically remove it, in spite of my perfect record with them? or worse close my account??? I'm really nervous about the very negative psychological impact this might have on me as I've been very happy with my new bank and i really don't want things to change or to be treated differently.[:(]

I cant wait for your responses.

Regards

Mrs R

You'll be fine. As long as you aren't using the facility, you're not borrowing any money, therefore you're not in breach of your IVA. I doubt very much Lloyds will remove the facility. Usually, one you have an overdraft facility with a bank and it needs reviewing, the bank will decide using an internal scoring system to decide whether or not it will be reviewed and this doesn't always mean a credit check.

Thanks for that Spike[;)] You really have put my mind at rest x