IVA

[j.k]

I am in the process of entering an IVA and changed my HSBC current bank account to a Halifax basic bank account as HSBC one of my creditors. My father has a current account with another bank (no connection with above two) and has my name also on his account in case something happens to him. I have no connection with this account as he has his three pensions paid into it and has no overdraft facility. He has also never been in debt or overdrawn in his life. How will my IVA affect this Thank you J.K

[Adam Davies]

Hi
I would take specific advice from your IP on that one,is your fathers bank one of your creditors ? If so the bank may have a right to take some/all of that money. It may be wise to take your name off that account but wait until you have spoken to your IP or Melanie/Catullus have advised
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

[catullus]

Strictly speaking your name should not be on the account but you should have a third party mandate in order to give instructions on the account and to sign cheques.

Almost certainly you have no ownership of the funds in the account but, to be safe, I would disclose this to your IP and explain the circumstances of the account. I am sure that they will be quite happy to exclude this matter from the IVA, but it would be preferable for you to remove your name from the account and set up a third party mandate, in due course.

[j.k]

Thank you all for your advice. My father's bank (Barclays) is completely separate from my bank (HSBC) who is one of my creditors.

Whilst writing, I wonder if you could also help me. I spoke to my IP today who asked me if I could disclose my father's pensions paid into his account (Co, RAF and OAP - my father does not receive any benefits. When I queried this as all debts are in my name only and my father has never been overdrawn or owes any money they said it was to look at joint income and then take things into consideration then. I do not want to stress my father on this and thought I could rely on a percentage taken out of my monthly salary for IVA. I am very worried and upset to approach my father on this.

[catullus]

Do you live with your father, and share the expenses of the household, in some way, rather than paying board.

If so this might explain why the IP has asked for this information because they will want to demonstrate that you are both bearing the household expenses in reasonable proportion to your incomes.

Other than that, I can't think why the IP would want this information.

[j.k]

I pay my father board and lodgings as well as buy all the food/consumables plus help on electric

[catullus]

Well, it sounds as though the IP feels that he needs evidence of the division of expenses in relation to income. That's not entirely unreasonable bearing in mind the expenses you are incurring as well as paying board.

An IVA proposal can still be prepared without this evidence but it may weaken the strenth of the case for an IVA in the eyes of the creditors