www.iva.co.uk

Hi everyone new here!

Applied for an IVA a week or so ago and have the creditors meeting in the 31st

Was told I need to open a new bank account and change my wages to be paid in there.

Today it seems my bank account has been frozen, my bank is one if my creditors and was in my overdraft but this has left me with zero money for about 7 days! Is there anything I can do? I received no warning this was going to happen and needed to borrow money to see me through anyway and now that's gone and cant pay my remaining Bill's etc

Any help would be greatly appreciated!

The bank may be getting confused with bankruptcy even though you haven't had your meeting yet. Speak to your IP company so they can contact the bank and ask them to unfreeze the account. so you can transfer your money.

Is there any reason you didn't do that initially?

Are you with Lloyds by any chance? As soon as they received the paperwork about my IVA, before the creditor meeting had even been held, they froze a joint account my name was on. Chances are if you have signed your paperwork but not yet had the meeting, the bank has received it and put a flag on the account.

Lloyds had marked mine as me going into bankruptcy. The ex was using the account and I thought my name had been taken off and he found his month frozen when they heard about my IVA. I had to go to the bank and see someone who called my IVA firm and got the flag taken off.

It is worrying that many financial institutions are unaware of what an IVA actually is and treat it as bankruptcy ! Of course, there are a couple of banks who simply do not like IVA's, but, on the whole, a call from your IP should put them straight.

However, in this instance, if the old bank is a creditor, they are moving to protect themselves before the IVA stops them and it is unfortunate that you didn't get your money paid into the new account before they heard about it. You might have to depend on their goodwill for them to release money they know they will lose.