www.iva.co.uk

Is cash in the bank available to withdraw leading up to creditors meeting, or is it considered 'ringfenced' to reduce the debt amount?

In our case, HSBC are our bank and although no overdraft is on the account, we do have an HSBC credit card that will be included in the debt. I wonder if they'll accept money into the account but not let us withdraw it before an IVA is agreed, possibly viewing it as money they can keep to reduce the total debt.

Thanks,

rickyg

If you have money (wages etc) in your bank account and you need it for bills etc then i would use it ,we did. We opened a new bank account and had our direct debits set up and standing orders on new account. I would get a new account and use the money you have to pay your bills untill your iva is proposed / accepted.We were advised that beacause we had debts with our old bank account which were to be included in the ivas,then it was advisable to open a new basic account with someone who had no financial linking with either of us.

If you bank with an existing creditor, you should be changing your bank to one with whom you have no financial relationship.

If you do not do this, HSBC could close your account thus leaving you with nowhere to put wages or pay bills without notice.

Hello there
clients are usually advised at the very start of the process of an IVA (initial meeting) to open a new basic bank account, in a bank where there have been no previous links ie not a creditor in the IVA, and to get income etc transferred over to the new bank account, DD's etc asap. The reason they are advised this, is that as soon as a bank is notified of an IVA (in your case they will be the fact that you have a HSBC credit card)they are entitled to 'freeze' any money held in the account to set off against other bank debt such as credit cards, loans etc
Hope this helps

Melanie.n

The cash in the bank accounts is yours to withdraw prior to the IVA if you let HSBC take it will be seen as showing priority to HSBC and they must be treated equally.

You do need to open up another bank account with someone who is not linked in anyway to your creditors.

Hi there I would change to another account not associated with hsbc. Hsbc have been closing accounts of those in an iva and if your wages go in there then they may freeze your account and it could cause problems. I would change your account wages and debits now to save any problems. When opening a new account make sure it is basic with no credit attached like an overdraft.

Ang

I agree with Aguise - I would recommend opening a new bank account with a bank who are not linked to your creditors as HSBC are well known for closing the accounts of people in IVAs.