Hi I am a newbie and was wondering if my current account is with HSBC and I apply for an IVA and put HSBC Loan and HSBC credit card on it will I lose my bank account?
If you go for an IVA, then you need to change your bank account and get a new one with a bank that is not one of your creditors.
HSBC will close your account anyway when you get an IVA - they did with me. If you leave it open whilst applying, they may very well take out any money left in to offset their loan. They will certainly keep on taking out loan payments, regardless of whether or not the money is there to pay them.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
I was with HSBC had a couple of overdrafts with them, loan credit card and I had to go and get another account. As Kallis says they will nab any money you have in there to offset the debts once they get wind of the situation. It will be easier to open an account now at the beggining. I found this quite easy although daunting, just make sure that you open an account with someone not associated with any of your other creditors.
Just to add, make sure that youre one hundred per cent informed of the IVA proceedure at each stage and most importantly that youre happy with the provider.
Good luck, I know that this is a tough time right now, but everyone here is very friendly and will help every step of the way.
Last edited by freelili on Wed Sep 03, 2008 10:46 pm, edited 1 time in total.
What bank did you apply to after HSBC? I have just been on Abbey and all the questions they are asking I am scared I will be rejected. Does anyone reccommend a bank to transfer to?
I went to LLoyds first and they gave me a cash card account, later on I went to Cooperative. I went in person, told them of my problems with debt and they were lovely. You need a cashminder account, comes with a visa electron, internet banking, you can deposit into post office and withdraw from most machines. Its an account for people with debt problems, you will be fine but do go to the branch if you have one near to you. Oh and if you havent yet defaulted on your loans etc, they do try for the higher account first, they did this with me but it was declined. You really need the basic account to start with.
Good luck, you will feel better when all that is done.
