www.iva.co.uk

Hi.

This may sound like an odd question but after posting my application pack for an IVA and cancelling direct debits / transferring to a new co-op account etc.

Should I draw out my maximum amount to my overdraft limit to give me some emergency funds?

Hi, I probably wouldn't do that as you will stop paying your creditors and be able to build up a contingency fund that way, once you acknowledge you're insolvent you should take no further credit. x

Hi,

Do you mean from your old account or the new one? If it is the new one then you should not have an overdraft.

Otherwise, remove all money from your old account and pay this across to the new account so that you can pay your bills.

Sorry if I'm wrong I read it shall I take the overdrat to the limit before transferring to Coop, I may well be wrong. x

I only meant that any money due to pay normal debts should be moved across to the new account. Other than that the old account should be ignored.

Hi John,

Lesley is correct in that if you have acknowledged the fact that you are insolvent you should cease to use credit. However, it's possible that you have only been surviving by using the overdraft facility, in which case you may need to use some of that money to get you through to payday without missing essential payments, just call the company you are dealing with tomorrow and ask them for guidance, they may have included your overdraft at it's maximum when consulting with you.

You should always make sure that your priority payments are made. Anything to your creditors takes second place whilst applying for an IVA.