Do I have to change Banks

[bassetlaw]

I am considering an IVA but feel really apprehensive about taking such a big step. Do I have to change Banks and if so, which would be the best options?

[MelanieGiles]

Hi bassetlaw and welcome to the forum

Have you consulted an insolvency practitioner yet? If not, then this might be a good idea as they ought to be able to give you lots of advice as to the options available, which may help take away those apprehensive thoughts.

With regard to banking facilities, if you currently bank with a lender to whom you owe money, you will need to find alternative arrangements. I hear that the Co-operative Bank are very good in this regard.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[iva_squirrel]

Hi bassetlaw,

If your current bank account is with a bank to whom you owe money or is in overdraft then you will need to open a new basic account.
Can you tell us more about your debt situation?

Regards,
Michelle P.

[Oliver]

If you bank with someone you owe money to you will be advised to change to a "clean" bank account. Also if your IVA is accepted you will not be allowed any credit facilities on your account.

Best Regards
Oliver

Thomas Charles and Co Ltd.
Experts in personal debt solutions.
Read customer feedback at: www.thomascharles.com/about_us.asp

[bassetlaw]

I am in debt to around £28000 with 8 creditors. I bank with the Cooperative Bank into which my salary is paid. All Direct Debits and other Internet Banking is made from this one account. I have been told about IVA's and Debt Management but I am more confused than ever as I don't know which one to actually 'go' for. I have a loan arrangement with the Co-op which is being paid off without any problems. The main problem is the interest charged on my credit cards.

Hi bassetlaw,

If your current bank account is with a bank to whom you owe money or is in overdraft then you will need to open a new basic account.
Can you tell us more about your debt situation?

Regards,
Michelle P.

[Oliver]

If you are unable to meet your monthly payment commitments or don't have the assets to pay these monies back you are Insolvent and therefore eligible to propose an IVA or go bankrupt. The best thing to do is discuss this further with a debt expert (contact 2-3 companies) and they can steer you in the right direction.

Or alternatively post details of your disposable income, assets, etc... and we can advise further.

Best Regards
Oliver

Thomas Charles and Co Ltd.
Experts in personal debt solutions.
Read customer feedback at: www.thomascharles.com/about_us.asp

[Adam Davies]

Hi Bassetlaw
Welcome
If you do decide on either a DMP or an IVA you need to know that all your unsecured debts will have to be included,even if they are upto date like your Co-op bank loan.
Please post more details.
Regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[iva experts]

Hello Bassetlaw,

With debts of £28,000 I dont think a DMP would be best for you, unless you have a considerably high disposable income. The reason being is any debts over £15,000 can take longer to pay off in a DMP than the 5 year period of an IVA, this can be discouraging as it shows little light at the end of the tunnel.

Best Regards. IVA Experts