IVA and overdrafts

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Heidi1%
Heidi1% Posts: 1 Newbie
in IVA & DRO
Hi,


I'm in the process of setting up an IVA but have a £500 overdraft on my bank account which can't be included. I was told I would need to pay this off first. Will it matter that my bank statement will show it was used in the last month?

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  • Lincsdebt
    Lincsdebt Posts: 97 Forumite
    Debt-free and Proud!
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    Have they said why the overdraft can't be included? My overdraft was included in the IVA I had, though I had to get a new account with a different bank.
  • National_Debtline
    National_Debtline Posts: 7,998 Organisation Representative
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    Hi

    It would be interesting to know why your overdraft can’t be included.

    You would normally just bank with a different organisation and include the overdraft in your IVA as in Lincsdebt's case, rather than prioritising that one particular debt.

    James
    @natdebtline
    We work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps
  • dizzyblonde82
    dizzyblonde82 Posts: 475 Forumite
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    I had a bank account with small overdraft and wanted to keep the account but was told by Stepchange IVA that all overdrafts needed to be included in IVA application.
  • National_Debtline
    National_Debtline Posts: 7,998 Organisation Representative
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    dizzyblonde82 wrote: »
    I had a bank account with small overdraft and wanted to keep the account but was told by Stepchange IVA that all overdrafts needed to be included in IVA application.


    Hi dizzyblonde


    Your bank would in all likelihood have cancelled this overdraft facility once the IVA got underway in any case.


    Dennis
    @natdebtline
    We work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps
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