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We were cold called by a company last night regarding starting an IVA, We have negative equity in our home at the moment my partner has just gone back to work after being unemployed through redundancy & we have large mounting debts that do not seem to clear. I do not know if they are a reputable company - how can weknow if they will really improve our stiuation?

Some of the debt we have outstanding is with our respective banks, if an IVA means you are protected from being contacted by your creditors why is there a need to change our bank accounts?

Josie

I would personally beware anyone cold-calling you to sell professional insolvency advice. Who were the company? If you are seriously thinking that you need some form of assistance in addressing your debts, read my blog on choosing an advisor first.

You need to open a new bank account when you propose an IVA, if you also owe money to your existing bank. This is done to protect your future salary from being grabbed and used to repay overdrafts or loans.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk