need to clear my overdraft?

[jackie.a]

I am currently in the process of completing relevant information for an IVA. I have a current account from HSBC but these are not on my list of companies I owe money to. I have an overdraft facility, I am correct in thinking that I need to clear my overdrafy before I move forward with an IVA?

[plec]

hi jackie welcome to the forum no u can add it to the iva but i would change banks and move d/d

High hopes & skint pockets!!

[aguise]

Hi Jackie the overdraft would be included in the iva as an unsecured debt and you would need a new bank account, not connected to any of your creditors.This is quite normal . most have to change accounts. You would just need a basic account with no credit. There are quite a few, check some of the previous posts about bank accounts. HSBC are as far as I know closing the accounts anyway of those in an iva or bankrupt, so even if you paid it off you would probably lose the account at some point, better to include it.

Ang

Please visit my blog at http://aguise.blogs.iva.co.uk/

[Jo Rolland]

Hi

How much is owed on this overdraft? If this is a large amount I would advise that you do not clear it but start afresh with a new bank. What you have to think is, is it fair that you pay off HSBC and not your other creditors in order to be able to continue banking with them?

The Cooperative Bank have an account called Cashminder Basic which would be fine for you.

Jo Rolland
Debt Alternatives
www.debtalternatives.co.uk

[Adam Davies]

Hi
Just to agree with the other posters that you must not show favoritism to one creditor.
More importantly though is that HSBC have a policy of closing accounts of people who are in an IVA.I believe that they regularly trawl the Insolvency register searching for any of their customers that are in an IVA.
Regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[bagpuss]

I agree....open a new bank account ASAP with another bank/building socity that isnt one of your creditors.....then have all your wages and incoming money paid into your NEW bank account....and your direct debits for all household bills coming out of your NEW bank account....leave your OLD bank account with nothing going in or out. Then include this OLD account as a debt for your IVA. x

Angie xx


My IVA Story......http://bagpuss.blogs.iva.co.uk/2007/09/ ... iva-story/

[jackie.a]

Thank you for all your advice, it is really helpful to know that others are also going through the IVA process. I have applied for a new bank account and awaiting paperwork. Hopefully things will start moving now.

[;)]