considering iva -- how are bank accounts affected

[hazel.06]

considering iva -- how are bank accounts affected ? and debit cards ? i have a car on hp -- need to keep paying this as i need for work - is this possible ?

[Tina Shortland]

Hi Hazel, welcome to the forum,

You would need to change your bank account if you have debt with your current bank - this is to protect your money.

You can continue with your car on HP as it will be built into your expense budget. If the payment is deemed too high leaving you with little disposable income the creditors may request you have a cheaper car.

The best thing you can do is speak to 2 or 3 companies in detail to discuss your overall situation further. There are good companies and IPs posting on here and you can have look at their reviews amongst others on www.iva.com

Regards,

[Shining]

Hi Hazel welcome to the forum, excellent reply from Tina as per usual, always try to speak to 2 or 3 companies to ensure you get that all important impartial free case specific advice.

Hope it goes well for you x

[kallis3]

Hi and welcome to the forum.

If your bank is one of your creditors then you should change your account as soon as possible. The Co-op comes highly recommended.

Your car may well be ok if you can afford these payments alongside an IVA.

I recommend that you speak to a professional. Visit www.iva.com for a list of companies and reviews. Give one or two a ring and you will receive some free and impartial advice.

[nepensioner]

Hi Hazwl
Welcome from me too!!
I have just begun my journey into proposing an IVA, and the hardest bit was opening a safe account at bank that had no link with my creditors and changing over my standing orders for council tax etc and picking up the phone to get free advice from some IP's about my own circumstances, honestly once you have done that they take all the strain and you will sleep far better, good luck

[hazel.06]

thanks everyone -- have already opened new account-- in the process of switching direct debits etc- would i be able to use this account as normal then ? with debit card etc ? have one quote from ip but will talk to more if this is normal practice ?

[Shining]

I would advise you talk to more than one IP Hazel just to get that impartial advice on all debt solutions.

Your new account that isn't linked to any of your creditors is fine to use as per normal, debit card etc., so long as you take no credit/overdraft x

[kallis3]

Yes, a full account is fine if you can get one.

It is a good idea to speak to more than one IP, but if you are happy with the advice you have, then go with it.