Switching Bank accounts scared and stressed

formidablelady

I have just started to apply for an IVA. Up to now I thought my IP was helpful but I just asked her about the best time to switch bank accounts and she was very vague. The bulk of my credit is owed to my bank LloydsTSB . I have a joint account with my husband with an overdraft of £1500 and my own account with an overdraft of £1000. I want to set up a basic bank account with the co-op. I asked her how best to go about it and when the best time to do this. I am worried that if the co-op try and tranfer everything LTSB will try and hold back some of the money using their right of ? whatever its called. Any advice gratefully recieved. She also urged me to sed in figures asap so they can start processing it. As i have already defaulted on a couple of payments on some accounts will the bailiffs be coming..... feeling really scared and stressed.

judojub

formidablelady wrote: »

I have just started to apply for an IVA. Up to now I thought my IP was helpful but I just asked her about the best time to switch bank accounts and she was very vague. The bulk of my credit is owed to my bank LloydsTSB . I have a joint account with my husband with an overdraft of £1500 and my own account with an overdraft of £1000. I want to set up a basic bank account with the co-op. I asked her how best to go about it and when the best time to do this. I am worried that if the co-op try and tranfer everything LTSB will try and hold back some of the money using their right of ? whatever its called. Any advice gratefully recieved. She also urged me to sed in figures asap so they can start processing it. As i have already defaulted on a couple of payments on some accounts will the bailiffs be coming..... feeling really scared and stressed.

Hi formidable
Firstly. Try not to panic! Easier said than done I know. Majority of my debt was with Lloyds too and I banked with them.
Now that you are in the process of applying for IVA you need to get bank accounts changed as soon as poss. Co-op Cashminder, Natwest Step account and Barclays Basic are good ones if you don't have debt with them.
Give the coop a ring tomorrow and request the cashminder account only. They were fairly quick to set up my account. As soon as you get your details through, transfer all of your DDs/wages to that account.
Bailiffs won't be coming round. You will probably start to receive letters and get phonecalls but they can't move that quick!
I personally opened an account with Natwest and Coop just to be on the safe side.!

Also please be aware that your share of the joint overdraft would be included in the IVA but Lloyds will chase your husband for the full amount owed.

debtfree2016

Hi Formidable
As Judo said try to keep calm. Have you sent the authorising paperwork back to your IVA company? They should have advised you to open this account before sending the authorising paperwork or at the same time.
Baliffs won't be coming round so don't worry... Speak to the bank you wish ot open the account with as soon as you can and find out how long it will take to get the comfirmation the account is open and when it can be used.
Good luck and keep posting..

formidablelady

Thank-you both. Judo when you switched did they not try to hold back some of the cash. Did you do it manually and have to cancel all your DDs yourself or did the co-op make all the arrangements. Oh and IVA is in both names. I am embarrasse to say both of us were hopeless with money.

Debtfree I am just completing all the information she needs. What will I do if they threaten to pass on the debt to a debt collection agency do I need to pay it ASAP.

judojub

Hi.
I actually got all my DDs going through Natwest as I applied for that one first and details came through before Co-op although it did take a couple of weeks with Natwest.
I transferred all mine manually, mainly because at the time I didn't know whether they might ask questions and like you I would have been too embarrassed to answer them! Natwest do have the facility though to transfer them all for you. Don't know if Co-op do.
Lloyds did absolutely nothing, I was worried too incase they froze my accounts before I could transfer everything over but it didn't happen.
Give Co-op a ring tonight and get the ball rolling!

formidablelady

Thanks Judo will do. Do you mind me asking how you are finding your IVA?

judojub

It's only early days for me yet formidable. I am just 2 months into mine and still trying to get my head around budgeting! It hasn't helped that we have had a couple of expensive months too. It's certainly taking some getting used to but for me personally, I am glad I have done it as the alternative was much much scarier.
Let us know how you get on and keep posting too. There is nearly always somebody around who will help if they can

formidablelady

It is a scary step to take but at the moment I have no money at all because I am trying to keep up with minimum payments. I have a feeling I will somehow feel better off as we live on beans on toast, egg on toast etc. I love both of these btw but everyday! I think the peace of mind must be worth it also. I looked at DMP but they aren't binding and bankrupcy was out as I didn't want to lose our home. Normally I would have got a secured loan but this is probably why I am here in the first place. A budget is just what I need!

judojub

If I were you I would stop making your minimum payments now. Try and save some of that money for a little emergency fund instead. You can, if you wish make a gesture of token payments of the same amount to each creditor! Save, save, save.
It is a scary step and not something to be entered into lightly but to know that there is light at the end of the tunnel can be very reassuring.

FavDaughter1

Hi, you've found a great place for help& support.

you need to get the new bank account set up now, you can ring the Co Op & do this over the phone 08457212212. as soon as you get your account number (we had cards through within 7 working days) then cancel dd's with Lloyds, re arrange wages to go into the new account. sometimes people have had to go into the old bank & withdraw salary the day it hits the old account.

Judo's right,stop all min payments now! creditors may try to bully you, but it not make any difference to your IVA being accepted . save as much as you can now to give yourself a "emergency fund" for car repairs etc. at this point we started to work off the budget our IP gave us for food etc, we're still doing that - so far so good!

our IVA was accepted in Feb this yr so this is all still very fresh in our minds. i was sick with fear,couldn't sleep,panic attacks etc. it was dreadful but we got help & things are much better.

are you happy with your IP?

formidablelady

Hi FavDaughter. I didn't know you could do it over the phone. I thought we would have to go in with passports etc. I have a loan to lloyds with monthly payment of £325 due out on 20/5/11 not sure wether to cancel or not. I have emailed my IP. I am scared of letters and have unplugged the phone. We are 2 months behind with some min payments. Had some letters threatening to pass debt on to debt collection agencies. This is why I am scared of the bailiffs. My IP said if they do come don't let them in and don't leave any windows open as they have a right to come in - no wonder I am nearly bald with worry. Not sure if I will get slapped wrists but I am with Melanie Giles. I chose them as they had good reviews. Not sure what to make of IP. Seems helpful on the whole but not very indepth on the whole bank account thing.