Bank accounts during an IVA

Freshstart2012

Hi

I'm currently in the process of switching from a DMP to an IVA and need some advice regarding bank accounts during an IVA.

I have a business account with HSBC and a personal account with Natwest, both have no overdraft facilities, however the Natwest account has a debit card whereas the HSBC account has a cash card. I owe no money to either of these banks or their associates and have kept both accounts in good order. Will I be allowed to keep these accounts or will both banks close the accounts down once I appear on the insolvency register.

I also have a Co-Op Cashnminder account, which I opened at the beginning of my DMP thinking that my main banks would close my accounts, however they didn't.

Thanks in advance

UpToMyNeckInIt

I too am in an IVA (started August 2012). Being self-employed, I switched my business account to HSBC, and my current account to First Direct, and another with CoOp. First Direct found out about the IVA, and have just given me 60-Days notice to 'find alternative banking facilities'. Most IP's would say avoid HSBC like the plague as they are renowned for doing this. I'm hoping my business account will be OK though, as that is in my Company Name.

At least you have the CoOp as a backup, and I heard that Natwest will be OK as well.

If you have no debt with your existing banks OR LINKED INSTITUTIONS (very important to check this point to avoid the risk of your creditors 'setting off'), you should be OK, and not need to open another account.

Good Luck.

Freshstart2012

Hi

Thanks for your reply, hopefully I should be ok as I have been on a DMP for the past 3 years, but if HSBC do close down my business account then the Co-op account will come in very handy.

UpToMyNeckInIt

...well that provides some reassurance to me with the HSBC business account (only been with them 3 Months).

Still have my 'old' business account with Santander just in case, but they were one of my IVA creditors (personal bank account overdraft), so I switched because I was worried about setting-off.

Freshstart2012

I also had a business account with Santander but they became part of my DMP just like yourself.