Is secured loan and current account affected by not paying unsecured debts until IVA is accepted ?

[ashleymstone]

Apologies if this has been covered elsewhere. We are in the early stages of the IVA process and would like to know where we stand. We have been advised to stop paying our unsecured repayments until the IVA is in place. We have, for example, credit cards with barclays and a secured loan with barclays too. If we were to stop paying our credit card bills would barclays be able to do anything in respect to the secured loan. Also, until the new account is set up in about a months time (my wages have already been paid into my old account) can Barclays freeze / take money out of our current account if payments on their credit cards cease? Many thanks

[Adam Davies]

Hi and welcome

The secured loan is fine, just keep paying it in full.

You need to open a new bank account and remove any funds that you need from your Barclays account before stopping paying the Barclays credit cards. Banks have the right of offset and can plunder your account to pay for any unpaid credit cards etc

Kind Regards

[Niobe]

Welcome from me as well.

Co-op come recommended as a bank account - their basic account can be applied for in branch or on the phone and you get a debit card and online banking.

Take your money out of Barclays as soon as you can.