Bank account frozen

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IvaIn2018
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by IvaIn2018 » Tue Feb 06, 2018 5:46 pm
Hi all

Have my creditors meeting on 11th Feb with 3 debts, one if which being Halifax who I have a small loan with. I also bank with them. They have frozen my current account as of today. When I spoke to a phone advisor they told me to go to a branch and have my solicitor male contact with them. The advisor sounded foreign and through broken English I assume that by solicitor I think she means the IP supervisor?

Am I likely to get access to my funds at all once the IP gets in touch with them? I have direct debits and the obvious living expenses to pay...

Any advice...
Thank you
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Foggy
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by Foggy » Tue Feb 06, 2018 5:53 pm
They should not have frozen your account. Possibly whoever pressed the computer button was mixed up with bankruptcy proceedings where the OR takes temporary control. Pop into branch and educate the manager.
IvaIn2018
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by IvaIn2018 » Tue Feb 06, 2018 6:01 pm
Foggy wrote:
They should not have frozen your account. Possibly whoever pressed the computer button was mixed up with bankruptcy proceedings where the OR takes temporary control. Pop into branch and educate the manager.


That's what I had thought too. The IP put IVA proposal through to the creditors with a comparison to the return they would get compared between the IVA proposal and bankruptcy proceedings. The IVA proposal was a large lump sum (funded by a 3rd party) compared to the much smaller amount they would get if the IVA wasnt approved.

Could it just be the case they have made an error?

Thank you
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Foggy
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by Foggy » Tue Feb 06, 2018 6:26 pm
IvaIn2018 wrote:
Foggy wrote:
They should not have frozen your account. Possibly whoever pressed the computer button was mixed up with bankruptcy proceedings where the OR takes temporary control. Pop into branch and educate the manager.


That's what I had thought too. The IP put IVA proposal through to the creditors with a comparison to the return they would get compared between the IVA proposal and bankruptcy proceedings. The IVA proposal was a large lump sum (funded by a 3rd party) compared to the much smaller amount they would get if the IVA wasnt approved.

Could it just be the case they have made an error?

Thank you


It is an error I have seen made a few times, so this could be a repeat.
IvaIn2018
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by IvaIn2018 » Tue Feb 06, 2018 6:50 pm
Hoping so...will update tomorrow.

Thanks !
Mrs_Brown
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by Mrs_Brown » Tue Feb 06, 2018 7:01 pm
As soon as Lloyds got papers about the IVA meeting, they froze an account of mine. I had to go into branch and an advisor there rang through to to my IVA team (who didn't even ask to speak to me, just if I was present) Once they said they had no interest in the account, Lloyds then released the funds into a different account and closed it. Unfortunately it happened to be a joint account, which the other party still used and hadn't removed my name from as requested, and he was without funds all weekend as it was only realised the account was stopped on the Friday night and IVA team weren't available until Monday.
IvaIn2018
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by IvaIn2018 » Wed Feb 07, 2018 12:59 am
Mrs_Brown wrote:
As soon as Lloyds got papers about the IVA meeting, they froze an account of mine. I had to go into branch and an advisor there rang through to to my IVA team (who didn't even ask to speak to me, just if I was present) Once they said they had no interest in the account, Lloyds then released the funds into a different account and closed it. Unfortunately it happened to be a joint account, which the other party still used and hadn't removed my name from as requested, and he was without funds all weekend as it was only realised the account was stopped on the Friday night and IVA team weren't available until Monday.


I'm hoping that the same line will be taken tomorrow, practically all of my salary is in the account. I know I shouldn't be so surprised but it's really been a gut punch today. I didn't know til I tried to buy £3.30 of McDonald's coffee with my debit card...

:(
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Lisa Thomas
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by Lisa Thomas » Wed Feb 07, 2018 9:19 am
Be prepared that they might be entitled to set off the funds in one account against the debt.

Also be prepared that you might have to find another Bank.

If so, open up a Basic Bank account.
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SteveUK
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by SteveUK » Wed Feb 07, 2018 10:02 am
Do IPs not advise people to set up another bank account at the start and get wages paid in there? I'm sure Payplan did with us.
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kallis3
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by kallis3 » Wed Feb 07, 2018 10:46 am
Most of them so, as do we on the forum.
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Foggy
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by Foggy » Wed Feb 07, 2018 10:56 am
SteveUK wrote:
Do IPs not advise people to set up another bank account at the start and get wages paid in there? I'm sure Payplan did with us.



You will only be advised to do this if one of your creditors is the bank you are with, or is in the same company group as your bank, due to the possibility of offsetting. Also advisable if you are with HSBC or First Direct, as they are known to close accounts arbitrarily at the sniff of an IVA. An IP should make you aware of the possibility.
IvaIn2018
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by IvaIn2018 » Wed Feb 07, 2018 11:48 am
Hello all

Just back from Halifax. The lady there moved all of my funds across to a basic bank account that I have had for a while as a reserve. She was very understanding and helpful

Thanks to everyone that replied here
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Foggy
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by Foggy » Wed Feb 07, 2018 11:50 am
IvaIn2018 wrote:
Hello all

Just back from Halifax. The lady there moved all of my funds across to a basic bank account that I have had for a while as a reserve. She was very understanding and helpful

Thanks to everyone that replied here


Excellent -- Glad that is sorted, but it is extra stress that you do not need!
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kallis3
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by kallis3 » Wed Feb 07, 2018 2:34 pm
Great news - good result.
IvaIn2018
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by IvaIn2018 » Wed Feb 07, 2018 4:05 pm
So true about the stress, hoping the creditors meeting goes as planned and I start getting on with my life. Nice to be able to ask others who have been in a similar situation. Means a lot!
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