I'm in process of an IVA. Will Halifax close my account? I have a credit card with them.

[Caroline.01]

I'm in process of an Iva, I have credit card with Halifax and that's I'm my Iva plan. I have my current account with Halifax aswell. Will Halifax close my account or can I still bank with them? It's been 2 month now and haven't heard anything from Halifax

[Kev.02]

As far as i'm aware you need to open a basic account with a non creditor.
Some one will correct me if i'm wrong but i would say they will close your account.

[ginger323232]

Caroline - welcome to the forum - they may offset any positive balances in your current account against the credit card debt . So it is well worth opening an account elsewhere (Halifax is part of Lloyds Group) so avoid any of their accounts - even at this early stage start looking around

[ginger323232]

It doesn't need to be a basic account - if you can get a full normal account elsewhere

[TheArtist]

Welcome Caroline. I recommend Kevs suggestion. You will need another account, pretty sharpish, not related to any of your creditors. Once the Halifax twigs your IVA status, they will force close your current account....and take everything thats in it.

[GilliB]

Hi Caroline.01. Welcome to the forum. As ever. Great advice on here. Please don't delay, and research to ensure your chosen option has no links to any of your creditors. If I recall, I think I just googled it and I got a list of linked banks - quite an eye opener! I went with LloydsTSB and have a Visa debit card and good online banking. Good luck x

[Niobe]

Halifax offset £34 from my savings account against a £20k account so do agree that you need to change this account asap.

Co-op come recommended.

[sponge]

good chance your CR is on the rocks already..nationwide do a cash card plus account, debit card, usual banking and online and doesn't cost a bean) no overdraft (of course) and even though I finished my IVA 18 months ago I still have it today, even though I have a top credit rating (that happens when you finish an IVA, believe it or not) I see no reason to change it

[Niobe]

Barclays and Co-op are also recommended for basic accounts/

[mazbrown]

I had my current account with Halifax , a loan and a overdraft . They actually recommended the think money group to me after I was speaking to them regarding my difficulties .
I even called them in the Halifax branch .
Eventually I was put in contact with freeman jones part of the think money group . I then started my iva journey . It's 4 years on now and Halifax were very supportive ( even though I owe them 10k ) .
I closed the account last month myself and they asked me to reconsider !?! .
After reading this forum I would have closed it a lot earlier as they are one of my creditors .
However they never said anything about closing the account all the way through my iva .

[UpToMyNeckInIt]

Hi Caroline,

To avoid the risk of your existing bank/creditors 'setting-off', you should open a new account with a bank that is not one of your creditors, or linked to an institution that is. (Ie: avoid Barclays Bank, if you have a debt with Barclaycard for example).

As Ginger says, no need to restrict yourself to a basic bank account if you are pre-IVA (just don't tell your new bank that you are about to enter into one - there is no requirement to do so).

Whoever you choose to bank with, avoid HSBC/First Direct. They will close your account when the discover your IVA. I speak from bitter experience. (Apparently they routinely search the Insolvency Register, other banks do not to the best of my knowledge).

Good luck with your IVA. this is an excellent forum if you need any sort of advice.