Iva bank help!!

emmalouise1981

Hi

I have just started the early stages of IVA,
I was sorting out a new bank account.
My propsal has been sent out to creditorsm one of which is hsbc
i then got my new bank account and went to transfer money and hsbc said my account has a marker on it because of iva
this was friday night 7pm - so i have no money

Will the money be gone forever?

cheesedoffwithdebt

Is HSBC a creditor and you opened a new account with them? There is something where the banks can take funds from an account that's associated with them, but I'm not sure they can if you are in an iva which effectively sets the terms of your debt repayments, ask your ip, but I suggest you bank elsewhere, so sorry this has happened

emmalouise1981

Thanks

Yes they are one of my creditors.
I have a new bank account now open.

Do you think hsbc will take all the money in there and leave me wiht nothing to live on?

UpToMyNeckInIt

emmalouise1981 wrote: »

Thanks

Yes they are one of my creditors.
I have a new bank account now open.

Do you think hsbc will take all the money in there and leave me wiht nothing to live on?

If HSBC are one of your creditors, and you are still banking with them, there is a risk that they may use their right to 'set-off' ie: without your permission, to take funds from your account to pay of your debt with them.

Best seek advice from your IVA company. I would be very surprised if they did not advise you to open a new bank account with a non-creditor bank, precisely to avoid the setting off risk.

HSBC are notoriously unfriendly to those of us in IVAs. Prior to knowing this, I opened a 'First Direct' (HSBC) current account. 4 Months into the IVA, they find out about it (apparently they trawl the Insolvency Register), and gave me 60 days notice to find a new account.

I have found it very difficult, now the IVA is in place, to find alternative high street banking. So the point is: get your new account sorted ASAP, and well before the IVA is approved. (CoOp are iva-friendly, as are Barclays and Santander).

Good luck.

Anondebtadvisor

HSBC are one of the most difficult banks to deal with in IVAs - I agree that your IVA company should have discussed this with you in detail and made sure your proposal went out after you had sorted the new bank account.

Once your IVA is approved you could ask your IP to contact HSBC to see if they will release the money, speak to your IVA company about this. Fingers crossed for you x