www.iva.co.uk

ihave recently started and IVA this was approved in september this year. My problem is i went to a pawnbrokers to "cash" cheques these are called payday cheques you can either bank them on your next payday or pay a fee to roll them over.obviously with the IVA my account has now been frozen as they were a creditor. The question is if i allowed the cheques to be banked would the bank still have to pay them (as they were guaranteed by cheque guarantee) or would i still be liable for them ?

Hi Trudy and welcome.

Is this from before your IVA, or have you been having the cheques since?

Is the money already in your bank account?

I'm not sure how this would work, so hopefully a technical expert will be along shortly to advise.

Hi
Your bank would still have to honour them and as long as they were dated before your IVA then you should be ok.If you cashed them after your IVA,when your account was frozen,then you could be in a bit of trouble
Regards

no these were written long before IVA was thought about thanks for your speedy reply

but could i still have a debt (other than my IVA debt) with this bank as these funds are not available in the bank

Hi
If the bank was included in your IVA then their debt would just increase,this will make little difference.
If they were not included in your IVA then you will need to notify your IP so that they can be included
Regards

i did advise company of these cheques and they said they couldn`t include them but originally banl wasn`t going to be a creditor- i tried to pay them off before IVA went through could this prejudice IVA (eventhough its been approved) if debt increases? thankyou once again

Your IP (Supervisor) is wrong. Any debt due pre-IVA is a debt that is included within your IVA. Either the bank (by guarrantee) or the Pawnbroker. Press your IP accordingly. In any event it should not prejudice your IVA.

Just because you 'guaranteed' these cheques doesnt mean you bank has to honour them.

I was in a situation a while back when the re was not enough money in the bank to cover the cheques and i still thought they would go through. One cheque did but the others didnt.

I was always under the impression that if you used your cheque guarantee card the bank had to honour the cheque, providing it was under the limit on the card. Otherwise, what is the point in having one?

thankyou all for your time i will be contacting my IP tomorrow will post again should there be any problems
regards

Jan, I always thought the same until it happened to me. Maybe banks operate differently. I dont know!

Hi
Yes I thought that a guarantee card was exactly that..............otherwise there would be no point.As long as the cheque has been taken in accordance with the guarantee terms then surely it must be honoured
Regards

I would have thought that the only time they wouldn't honour it would be if they had written to you and told you not to write anymore cheques.

Otherwise, a guarantee card isn't worth the plastic it's embossed on!

Hi
But the poor old shopkeeper would be none the wiser so I think that the bank would still have to honour it
Regards