Changing bank account for iva

jayneybella

I'm in the process of getting an iva and have been advised to change bank,do all switching sevices close accounts or won't it work as my account is overdrawn. Will I have to do it all manually

colsten

If you use the Current Account Switching Service (CASS), your old account will be closed.

Any overdraft you have will not be switched. It remains as a debt with the old bank until you pay it off.

You can move any SOs or DDs yourself, without actually switching your old account. It obviously pre-reqs that you are accepted for a new account, but so does the CASS.

A general observation: If whoever advises you to change bank does not to know the answers to your questions, you should probably ask for a second opinion on any advice they have given you.

Anthorn

It could be that you won't get a bank account if you have an IVA or the account will be closed if you get an IVA after the account is opened. You will need to check the T&Cs of your bank in relation to an IVA. It could also be that your choice of bank account is limited to a basic bank account.

myth123

A basic bank account may be preferable if you are struggling to get a regular bank account.

NDL has quite a good fact sheet on basic bank accounts - https://www.nationaldebtline.org/EW/factsheets/PDFs/basicbankaccounts.pdf

As already mentioned by others, it's worth checking with the bank you intend to open an account whether they will close the account down as a result of the IVA, and to avoid any bank that is one of your creditors.

Your IVA provider may be able to provide some guidance as to which banks are more favourable when it comes to customers with IVAs.