www.iva.co.uk

Hi, I've just entered I to an IVA and my current account has been frozen as of yesterday. I had a new account all set up ready and changed all the payments over. All good,all trouble-free. Feeling hopeful!

I'm in receipt of benefits as I'm disabled, and this morning I've checked my bank to see that housing benefit and a DWP budgeting loan (already approved, for a cooker, washing machine and fridge-freezer, all need replacing as broken or near to breaking all together), have been paid into the old account despite the above. Obviously I can't access either and I've just had a huge panic attack

Rent is due today and my LL is hot on the payment date. As it's DWP/Housing Benefit, can the bank legally refuse to release it? How do I go about trying to get them back? Will the IVA company be able to do anything?

Thank you for any advice or reassurance, it's 3.30 and I have a cup of hot sweet tea to try to allay any further panic attacks. My (microscopic) voice of calm is telling me that it's gonna be fine, there is an arrangement in place and they can't take government paid funds, but the anxiety is overwhelming!

S x

Go to the bank and from there contact your IVA company who should be able to discuss, once you give authority, with the bank about releasing the funds. They may need to email over a letter but the bank should be fine in releasing the funds.

I agree with Gary. It is basically down to the bank not understanding the difference between bankruptcy and an IVA. In the former the accounts are frozen to the order of the Trustee in an IVA they need not be.

Have you managed to get the matter resolved with your bank?