www.iva.co.uk

i have opened a basic bank account with a different bank from the one i owed money from or so i thought the iva was approved this week and then i got a letter from the bank i owed money to and they have transferred the debt to my new bank can they do this

Hi and welcome

Which banks are we talking about ?

Once IVA is agreed the creditor can't offset from one account to another to get the money back, only before the IVA is agreed can they do this

Regards

Not sure on this. Possibly maybe if they are linked. I'm sure the experts will advice, but they need to know which banks to help x

the banks were lloyds and tsb (i know) but i have always been reliably informed that these were 2 separate banks i checked and checked that my debt would remain with tsb and was always told yes when the iva was approved and all set up tsb moved the debt to lloyds

Hi

If the debt is included in your IVA then the bank can't try to claw it back.
Speak to your Insolvency Practitioner


Regards

yes the debt was included in the iva and i will talk with my insolvency practitioner thankyou

Good luck, and get yr money back!! X

Hi Kaz,

as I am sure you are nowa aware, Lloyds/TSB are part of the same banking group, and so have exercised their right to 'set-off' the debt.

I find it staggering that your IVA company did not adivse you to open a bank account with a non-creditor AND non-linked bank to avoid just this sort of complication.

Hope you get the matter sorted out soon.

i asked this question at the start and to all intense and purposes was told they are separate banks been to the coop this morning to open a basic bank account so hopefully things will be okay