Bank accounts pre IVA

socket590

Hi there,
I am shortly about to apply to go into an IVA and have several questions re bank accounts.

1. When applying for a new current account (no o/d), should I tell them I am about to enter an IVA?

2. What is an acceptable balance to have in the account prior to IVA? Is one months expenditure acceptable?

3. Should I apply for 2 c/a's? (I currently have 2, 1 for personal affairs and 1 for my self employment earnings and expenses).

4. Which banks are IVA friendly ?

My present bankers will be one of my creditors due to 2 overdrafts and a credit card.

lindsey30

Hi i got a new bank account with think banking, as my old bank is one of my creditors, i have no o/d with my new account i just pay 12.50 management fee to them, and they split the account into two, one part for all your bills etc,and what ever money is left goes into another account and that is your money, am sure they are part of RBS

Charco_2

1. When applying for a new current account (no o/d), should I tell them I am about to enter an IVA?
Yes, just tell them. If they throw their toys out the pram when they find out about your IVA later it'll only cause you more bother to change banks again.

2. What is an acceptable balance to have in the account prior to IVA? Is one months expenditure acceptable?
No set figures, really. Obviously you're asking how much in your account is going look like a lump sum asset for your creditors. Be honest with your IP but if you've a couple of hundred might be best to keep it as cash in the mattress as your personal emergency fund, if you've a couple of thousand you may need to share some of it up to your IVA. A month's expenditure would be acceptable, but if you've a little more then put it aside for contingency - five years can be a long time!

3. Should I apply for 2 c/a's? (I currently have 2, 1 for personal affairs and 1 for my self employment earnings and expenses).
I suppose you could but you may just have to try keeping your own accounts records and managing the money better in your own mind whiole it sits in a single pool in your bank. Whichever bank you speak to for your account(s) will be able to discuss this with you and give you better advice of what they can offer.

4. Which banks are IVA friendly?
Your could try the Co-operative Cashminder account - they may reject it if you apply online (they may not too) but they'll more than likely agree it if you go to their bank personally. Yorkshire Bank is another good one.
If neither of these are handy then dont worry, just approach a bank you have no debt to (ie who WONT be in your IVA) and ask for a current account with no frills, no facilities. Just a simple money-in-money-out account!

Since your current bank will go in to your IVA as a creditor you do need to make sure you change your bank before they get wind of your IVA or they will try to seize any monies paid in to offset against their own outstanding balances. You'd be better telling your employer not to pay you for that month and pick up a double wage the following month if that was the case!

***Lyndsey, that's all well and good and in the short term is a responsible thing to do however, remember this is costing you £150 a year for something you should be learning to do for yourself (for free)! Consider it like skiing nursery slopes, when you get your confidence up you should really look at taking the it back into your own hands

Good luck folks!

trudij

Last time I was in HSBC, I was asked if I was an account holder ( Im not - and still arent) - they were doing a deal where if you switched your bank account to them, they would credit your new account with £50. No idea if there was a date for that to stop - but could be worth a look??

Nicc

I took out an acount with Nationwide shorly before I started the IVA process on the advice of my debt advisor. I asked him if I should tell Nationwide that I was about to apply for an IVA, he said not to, as my current account was in good order and at that point had not defaulted on any payments (basically by this time by robbing peter to pay paul) then my credit score should still be good. So I went with Nationwide as at the time (2007) they were one of the few banks that would give you an account if you had an IVA anyway. A payment went out to Accuma every month so it was obvious by the reference on it that I had an IVA and they didn't seem to care about this at any point.

Charco_2

I could be wrong but i think Nationwide have changed!