www.iva.co.uk

I'm going through a IVA application and I've changed accounts to Halifax I have a basic account, no overdraft and I don't have any debts with them. Before applying I called them and they said if I didn't have debt with them there is no reason why they would freeze my account. I have learned this afternoon that I have a marker on my account and I am unable to access my funds. Their bankruptcy department is now closed so I am unable to speak to them. I would love some reassurance that this is a mistake and I will be able to have my account de-freezed?

Hi and welcome, not heard of this before with the Halifax, only HSBC and First Direct. Hang in there maybe another poster has experience of this or some words for you.

I'm sorry this has happened, Co-op are usually IVA friendly or at least they were, I'm sure others will give you a list of IVA friendly banks.

Another option could be Santander, co op closed my account but this was my own fault. I applied to Santander while in the iva and they had no issues accepting me.

This is a mis-understanding -- the clue is that their bankruptcy department is involved for some reason. They have mistaken an IVA for BR and just need to be put straight.

Thank you. I too am hoping it's just a misunderstanding, it's difficult not to become frantic when you're unable to speak to anyone at the bank until the next day

Hope it works out good for you tomorrow, let us know.

Fingers crossed!!

Bankruptcy department could just be the wrong use of terminology. I'm afraid Halifax are entitled to close the account but it might take a while for it to be unfrozen and the funds paid over - they may also insist on the funds going to your IP. If Halifax are owed any type of debt (credit card etc) they can offset this against the funds in the account.

Suggest you speak to your IP - you will probably now need their assistance to try and unlock it.

I had a problem with Halifax just before I started the IVA. I'd had an account with them for years and my child benefit was paid in there.

Imagine my embarrassment when I went in to close the account to be told that they had taken the money to offset against the debt - £30+ against a £20k debt!!

They shouldn't be - they are one of the companies that started providing basic accounts from January 2016.

There now should be less issues for people in an IVA where this is concerned.

See http://www.moneysavingexpert.com/bankin ... #publicise

This was 2008 though - they could do things like that and they were a creditor.

So an update... It turns out even in application stage they are notified about "intent" of a customer going onto the insolvency register. They treat an IVA the same as bankrupsy meaning they freeze my account. I've had to ask my IP to email their insolvency department to release my funds which I've had to put into my partners account. Meanwhile they will close my account and re-open another basic account (which i had already) after that event I won't have any further issues. Because the IVA is going through after I set up the account up this is just what they do. So frustrating especially I called them up a month ago when I joined Halifax and they assured me that as I have no debt with them at all there is no reason why they would freeze it!

Hmmm .. I was with the Halifax and had debt with them. As a precaution I took out all but £1.50 and opened an account with another bank. The account with the Halifax stayed open and "live" all the way through -- and is still open and now in use.

You were lucky Foggy - I was so humiliated in the branch at the time.

Wouldn't touch them with a ten foot barge pole now. Have an account with Nationwide and one with Barclays and those are both brilliant.