New to iva - advice please

[annearchie]

Iam currently trying to set up an iva. I have opened a new account but cant change details until i get paid in 6 days.

I will then change my works payroll to have my pay paid into my new account but all of my direct debits dont finish coming out of my old (debt) account until 6th dec. I am worried that if i start cancelling all the direct debits as they have come out, the bank will get suspicious and do the right to offset. Should i not cancel them until the 6th dec when the last one comes out? advice please

[Shining]

Hi and welcome to the forum. If you cancel your direct debits you can move them over to your new account for monies paid in and utility etc., Any creditor ones you can cancel, if you have debt with your bank you may have a problem as they won't usually let that happen but if you haven't the money in they can't take it, they'll probably try and put you in the red but that will be included within the IVA anyway.

Hope that helps x

[nepensioner]

Hi Anne
You could, when your pay goes into your old account, draw out all the cash, pay into your new account and cancel direct debits, then pay this months direct debits by phone using your new account.

[annearchie]

hi, thanks for the advice- i really dont know what the best thing to do is as i want my utilities payments to go out but dont wanna raise supicion by cancelling everything straight after ive been paid - my iva company have put a mail hold on the account until i say so i think . i dont know whats best to do ???

[Shining]

I would cancel all your creditor payments for definite and build yourself a contingency fund for when your IVA starts.

[kev59]

I cancel my direct dedits apart from one right away,
my old bank paid that putting be further in the red.
which will go into my iva.
A week later I sent letter to bank tell them I was going for a iva.
at no point did they get suspicious.

[kallis3]

Well said kev - that's about right!

[kazzafunk]

Yep - Kev - exactly what happened to us! Our £1000 overdraft had climbed to £2500 by the time HSBC got their fingers out.

[annearchie]

do you think i should pay the monthly payments over the phone then or just let them all go out and cancel them after the 6th dec when they have all come out but in the mean time set them up with my new bank??

[annearchie]

i think it would be better to let everything go out as normal then cancel from the 6th december. i wondered wheather if i was cancelling them as they were paid the bank would flag up that i am cancellimg all utilities - i cant take all the money out as it will take me right up to the overdraft limit - then they would get supicious !!

[kallis3]

The choice is yours anniearchie - you can cancel them now, I cancelled mine straightaway.

If your old bank goes too much into the red, then it doesn't matter - it will be included in the IVA.

[annearchie]

im so stressed my head is up my bum trying to work out whats best - surely my iva wont be set up by the 6th dec ?? thats 4 weeks after i get paid????? then my new bank account will have all my dd's and salary paid into it.

[annearchie]

what about all the utilities payments tho? say if the bank click on something is no right - will they take all the money that is set aside for bills?

[kev59]

I would stop any d/d for any company that will be part of your iva, and put what you can away for when your iva starts, or get upto date with any rent/ council tax.bill that cant go into a iva.

[annearchie]

what let them go out of the overdraft account you mean ? i get paid the 15th and my direct debits for utilities not creditors are spread out across the month until the 6th dec ?