When do you stop paying your creditors?

[Kazzy E]

Hi there, Melanie, if you are online, could you please answer the following if possible, or if anyone else can help I would be grateful. I have submitted my paperwork to you which you will receive tomorrow, I am confused as to when I should stop payments to my creditors as my bank is one of my creditors, and I have direct debits set up for my essentials, i.e. rent, water, etc, but if I stop payments to the bank cc's are they likely to take what is in my account which is earmarked for my essential bills? I have taken your advice and applied for another non-related bank account but this will obviously take a little time to open, in the meantime I don't want the bank to take my rent monies as I don't want to get in arrears with it (I need at least to keep the roof over my head). Am I best withdrawing my rent, electric, gas etc monies but how do I pay them otherwise, I can't send cheques as these still need to clear through my account. Thanks for your help, Kazzy

[Homer2418]

Note that the credit card departments, run totally independant from most banks and cannot take money from a persons account unless it is done by standing order or direct debit.
But to be on the safe side, I would withdraw the money that you need for the essential bills and pay them with cash, via the post office...

PS dont forget to cancel direct debits firstly

[gail871]

i would take your money out and pay by cash where possible as your account wil be frozen as soon as your bank finds out you are looking into an iva

[Homer2418]

Thats abit incorrect Gail, sorry to pick you up on that statement, the bank will only freeze an account if they recevie a letter either from the account holder advising them of there intent to seek an IVA or a letter from the IP.

And I would say that when you enter into an IVA, you really dont wanna be shouting about it.
Leave it to the IP professionals to advise them

[size5]

My gut feeling would be to advise you to cancel ALL d/d's first and, if necessary, withdraw all monies in the account and keep the money safe until you have a new account to pay it in to. If that means, for example, that the electricity has to wait for a week or two until the bill is paid, then so be it.

I am assuming that you have the new bank account process well in hand, and I am also assuming that you have been guided towards an account that provides a debit card facility. If so, then just pay the bills you need to pay by debit card until you can reset them to direct debit.

Regards.

[Viki.W]

Kazzy, I cancelled all my direct debits and then set up a new account, it took a couple of weeks. I was late with all my utility bills but I called them all and told them that I was opening a new bank account and gave them the details over the phone. That month's payments to all of them went through late, but they were all fine about it. Viki X

[Kazzy E]

Thank you all, thats a great help. I will cancel the dd's with the bank online over the weekend and will ring all my utilities to arrange an alternative payment arrangement until my new account has been confirmed. Size5, thanks also for your advice, I have applied for an account with a debit card, but we will wait and see whether I get it. Silly question, but my hubby and I have both applied for alternative accounts, if they don't let me have one, is it ok to have my wages paid into his account as he is more likely to be accepted for one? Thanks again, Kazzy x

[Wizzard]

Hi Kazzy
Welcome to the Forum. I found it very easy to get an account with another bank and my wifes wage gets paid into it but this is down to the employer (some won't pay into an account other than the employee). I know that the start of the IVA process can be intimidating but I think many on here will agree that every one involved wants to help as much as they can. Best of luck to you and yours

[MelanieGiles]

Kazzy

That is absolutely fine - and if you need any more assistance please ring the office and speak to Angela who is looking after your case. There is no problem in having your wages paid into your husband's account.

[Kazzy E]

Thanks guys, I really appreciate your responses. Will just wait to hear from the other bank re the new accounts but will take the money for the essentials out in the meantime. Kazzy x

[Kazzy E]

Sorry Ray, I meant to ask, how did you get on today? Am I correct in saying it was your big day today? Kazzy

[Wizzard]

Sorry Ray, I meant to ask, how did you get on today? Am I correct in saying it was your big day today? Kazzy

My proposal was accepted Kazz, as I'm sure yours will be, you have a great team behind you xx

[Kazzy E]

Thanks Ray, I know I have....most of the people who post on this forum can't be wrong! Good luck to you for the future, Kazzy x

[drowning-mummy]

I'm confused!
When we went into the bank, he took all our details, gave us paperwork to sign, then printed out a copy of our sort code and account number. Stupid question alert: Have I been accepted? I know that sounds dumb, but I keep reading how it takes time to set up account and how you have to wait to be accepted. We were planning on handing over those details to my husbands new employer on monday and changing mine with my work that day too.

[Kazzy E]

Hi Drowning-mummy, no, I am the dumb one, for applying for accounts online! If I had gone into a branch or phoned, they would have set my account up immediately. What they don't tell you online, is that it takes about four days for anyone to look at it. When I called my new bank yesterday, they said they hadnt received my application from Wednesday of last week and to check again on Monday. If your bank have given you the sort code and account number, I am sure there won't be a problem, those numbers are confirmed. Sorry to confuse! Kazzy x