BANK ACCOUNTS

[mondaynight]

Hi All - I have only been posting for a couple of days. I am currently on a DMP - and exploring the possibility of an IVA due to constant hassle from creditors and the extortionate amount I am currently paying through the DMP. the question I have is there seems to be a lot of talk about changing bank accounts before going into the IVA. Is it really necessary? I have been with the same bank for over 17 years although I had a few loans and credit cards with this bank when I went into the DMP they insisted I drop to the basic account which I have had now for 2/3 years will I be expected to change banks altogether if I go for the IVA???

[scaredkez]

the only reason you would need to change accounts is if you have debts still with them, as once you put money in your account they are legally allowed to take it to offset against any amounts that you owe them, thats why we are told to open up basic accounts with banks that are not creditors, hope this helps.
kerri

Please view my blog at: http://scaredkez.blogs.iva.co.uk/

[hara]

It is safer to change to a Bank that you do not owe money

I feel that IVA may the way forward.

If you posted details , one of the experts may be able to give more advice

hara

[iva_squirrel]

Hi mondaynight,

It's best to set up an account with a non creditor bank before starting the IVA process.
As scaredkez said if you hold an account with a bank which is also a creditor they will offset the monies in your current account.

Regards,
Michelle P.

[iva experts]

I agree with all who have posted, if your current basic bank account is not with one of your creditors there is no need to change banks.

Could you post more information like how much your current amount of debt is? and who are your creditors? What is your disposable income amount? This would really help!

Best Regards. IVA Experts