I’ve been accepted for an IVA but haven’t signed up yet, I’m currently overdrawn by £600 along with my other debts, will an Iva right the overdraft off or will the bank take £600 from my next pay packet and leave me with the rest? I asked the adviser on the phone but he didn’t explain it too well, I’ve seen other posts about opening a new bank account and I’m unsure if this is what I’d need to do.
As long as it is included as a debt you will be ok but you do need to open a new account with a bank not included as a creditor. Co-op come recommended but do not touch HSBC or First Direct as they are not IVA friendly.
I would suggest speaking to one or two companies before making a decision as to which company to go with.
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
The overdraft amount will/ should be included in your IVA as a debt to the bank. You need to change accounts asap to avoid the bank grabbing back the overdraft from your salary, which should be paid into the new account.
All business should then go through the new account as your old bank is likley close your account anyway.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Open a new account asap and transfer DD's across to it.
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
When you say accepted for an IVA do you mean you have made an initial enquiry and they have said it’s a suitable option ? Did they explain that a creditors meeting will be held in a few weeks and it has to be agreed by at least 75% of the debt for you to actually get the IVA approved ? If you are going to go ahead then as foggy has said you will need a new basic account asap as your bank will mostly likely freeze your account as soon as the proposal is sent and any money taken for the overdraft you will not get back. You will also need to change all your direct debits etc and make arrangements to have enough money to survive on till you know if they have agreed to the IVA. If the IVA isn’t accepted you will have to consider other options.
If you are still making payments to your creditors I would stop and build up a bit of a contingency fund. Also, if you have any online banking I would remove contact details from there so they cannot contact you.
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
They have spoken with the creditors and have accepted the Iva I just haven’t signed anything but I am expecting a verification call tomorrow, thanks for all advice I will get a new account set up ASAP and remove all funds from my current account to get me through til payday.
Mon Jul 01, 2019 5:57 pmLewism26 wrote:
They have spoken with the creditors and have accepted the Iva I just haven’t signed anything but I am expecting a verification call tomorrow, thanks for all advice I will get a new account set up ASAP and remove all funds from my current account to get me through til payday.
If the creditors have met and accepted the IVA you are already in it. You would have signed the proposal, so need not sign anything else unless there have been changes proposed by the creditors to which you have to agree (which it sounds like there were not).
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
