IVA and partners bank account

Essex-girl_2 · 7 April 2014 at 8:13PM

Hi All

I have had my iva approved this month which is yay :j my joint account with my partner is frozen and he went into our bank (Barclays) was completely honest with them and he opened a new current account with them with a debit card as did I but I could not have internet banking with them - fair enough.

Barclays over the weekend blocked my other half's online banking and mobile banking when he went to the branch today they told him it is because he is party to an IVA - he explained that it is my iva - but they are adamant he is party to it. He has just applied online to another bank which has come back as rejected.

Can we do a letter of disassociation even though we have a joint mortgage?

UpToMyNeckInIt · 7 April 2014 at 9:27PM

I am afraid that your joint mortgage is a huge financial association, and no way will the mortgage lender take one of you off the mortgage or financially disassociate one of you from it. This is because it provides better security for them.

Does your (Barclays?) 'joint account' have a debt which is included in your IVA? If it does, and the account is in joint names, the bank will be well within their rights to pursue your partner for the whole debt. Even if they open another Barclays account, they will raid it for the debt at some point, using their right to 'set-off'.

Might just be Barclays trying to pull the wool over your eyes, but are you sure the IVA is in your name only, and not an 'interlocking' arrangement with your partner?

You both should open accounts independent of each other with a non-creditor bank. Were you not already aware of this? This is really basic stuff which your IVA provider should have had you sort out from the off.

You may find, now that the IVA is up and running, you will be limited to a relative handful of 'basic' bank accounts (try: CoOp, Nationwide and Santander).

Good luck on your IVA journey.

Essex-girl_2 · 8 April 2014 at 5:01AM

Hi
Thanks for the reply - yes there was a joint overdraft & we were aware OH would be liable for it, we told the bank everything and they said old account would be left open for repayment but new account (for OH) would be fine. I have another account with the post office and use a prepaid debit card. I knew I would have trouble with a bank account but didn't realise it would affect partner just as much - its definitely an IVA just in my name.

Managed to get hold of someone reasonable last night at Barclays who explained the litigation department had suspended my OH's accounts but they couldn't understand why - OH is to ring the Litigation Dept today - fingers crossed can sort.

Custard_Pie · 8 April 2014 at 1:09PM

Depends if you want to keep the account open or not. If you have no overdraft on the account, or are not overdrawn, then my understanding is that the account is excluded from an IVA. My IVA just says not overdrawn on account.

Essex-girl_2 · 9 April 2014 at 6:07AM

Hi

Well after OH spending 40 minutes on the phone to Barclays Legal Dept it is all sorted - they had made an error and all the suspensions on the account are lifted. Phew - pity they didn't contact him before they put a block on everything - now go to get in contact with the company's where DD's were returned.

He has paid off the OD on the old joint account and that account is to be closed leaving both our sole accounts. Now to get on with life and get this IVA paid

IVA and partners bank account

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