What do banks do once they get an iva request

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Lahoretiger

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Post by Lahoretiger » Thu Jun 25, 2020 11:02 pm
Do banks check what you have done with there loan money once they get your iva proposal ? when is it a legal binding document?

luluj

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Post by luluj » Fri Jun 26, 2020 3:19 am
no..I very much doubt they do. Some banks have rules regarding ongoing account activity and in the past banks like HSBC and First Direct have closed accounts to those in IVA'S.

If it were me I would have a basic bank account set up as a precaution with someone like the co-operative to fall back on should you get challenged in any way
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Lahoretiger

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Post by Lahoretiger » Fri Jun 26, 2020 6:37 am
Sorry i meant like natwest was the bank that gave me a loan last year jan 2019 for 20k.
This year june 2020 i am applying for iva will they check how the loan was spent once they recieve my iva proposal

Foggy

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Post by Foggy » Fri Jun 26, 2020 7:09 am
What the banks do is very much up to each bank. However, with the current pandemic taking up much of their resources, I expect trawling bank accounts to see what you are spending on is unlikely to be a priority.

The IVA becomes legally binding if and when it is accepted by creditors at the initial creditors meeting.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
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