Hi there if you have debts with your current bank, then you will need to apply to another bank (one that isnt associated with any of your creditors) for a basic account. The HSBC overdraft will then go into the IVA as a debt.
Just to answer your question - your overdraft will remain with HSBC. You won't be allowed to close the account but you should open a new one as soon as possible. If you leave the account as it is, then HSBC can take your money to offset against your debts with them.
If you are accepted for an IVA, then HSBC will close the account anyway as they are not sympathetic to IVA's.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Thanks Melanie- I am reassured by your experience and feedback from the boards here so will cancel clear start on Monday and hopefully hear from your firm- I filled a request.
The only thing is i live in the North and couldnt afford to travel to your offices. Could it all be done by phone etc
I know Melanie does like to see her clients whenever possible, but unless you are self employed, there is no need for a face to face meeting, it is all usually one by phone, email and post.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
My main issue is this I guess -my finaces are just holding out no defaults etc. However if the process takes more than 8 weeks I will be going into my current account overdraft. Is it safer to open a new account now or is it silly to add to the number of creditors. If thinks started to get tight in eight weeks would cancelling the creditors direct debits be a good idea?
It is better to open the account now and get your salary and direct debts paid across to the new account.
Not paying your DD's makes no difference at all to whether an IVA is accepted or not. The only thing it will do is help stop some of the creditor hassle.
Pick up the phone now and get the ball rolling. It does normally take about 6-8 weeks to get one sorted, but can sometimes take longer.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Good luck Adam, you will find all the support and advice you need on this forum. We have all been in the position you are in, taking the first steps, which you have done, is very important to set you on your way.
I'm very happy to work with you via the telephone Adam. It is always great to meet a client personally, however this is not essential - and I actually have more clients in the North of the country than down South!
Thanks melanie. I keep thinking of more and more hurdles! If I have an IVA will I not be able to write cheques as I need to write cheques to attend work courses a lot. The simple bank accounts dont seem to allow cheques. If I was to stay with HSBC with no overdraft would they stop me using cheques?
HSBC will close your account once you have an IVA especially as they are one of your creditors.
As you have not defaulted yet, go to a bank which is not a creditor and you should be able to open a full account with cheque book. The only thing you won't be able to have is an overdraft facility.
You will have to change accounts though.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
