At what point do you stop the Direct Debits from the old account. Or how do you stop the creditors taking out money from you old account whilst you are in the trasitional stage?
If you have a loan with your old bank, they will probably keep trying to take it and then bounce it and then charge you for it. You can't cancel the direct debit. Don't worry though as this overdraft debt will be included in the IVA.
If you don't have a loan or credit card with your old bank, only maybe an overdraft, then cancel all your payments on that account and then just set up your essential ones on your new one.
I was lucky that I never set up DD's for credit card bills, just loans. Apart from the HSBC one (which was my bank at the time), I never had anyone else try to take out a payment once I had cancelled.
Halifax did once take £34 from my savings account to offset against a £21,000 loan![:D]
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
The day I started my IVA, was the day I stopped making any creditor payments, and advised all creditors to contact my IP via a letter to them and then made two monthly payments to Thomas Charles before the IVA kicked in officially (Personally if I could go back to the start I would have gone straight to a IP and saved those two payments towards my IVA, but I did not know any better and obviously was not advised I could do this by TC at the time)
The phone calls started just as soon as those letters went out, but I just ignored them. MBNA tracked down my works number and called it. I went ape, they risked my job and thus the whole IVA by doing that despite them being told by letter that I had applied for the IVA.
Best to move accounts before you start the process, cause they may try to offset, but if you cannot then perhaps you could ask for a cheque and tell them you've closed the account?
We're willing to wipe the slate clean, give you a fresh start. All that we're asking in return is your cooperation.
I'd stopped paying two of them before my IVA started, it was just token payments. The rest were on a DMP so were ok. I stopped everything as soon as Paypal accepted us.
The only problem one we had then was Mercers.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
I sent off letters to all my creditors once I had appointed Melanie and her team as my IP asking them to direct any future correspondance to them. The only one to reply has been Barclaycard to say that they await copies of the relevant paperwork - all the others have carried on sending me statements and default notices, and phoning continually - especially Egg and MBNA. The nice lady at MBNA totally ignored my telling her I was applying for an IVA and said that it was better to come to an agreement with MBNA to make reduced payments. I respectfully pointed out that she had no way of knowing this without knowing about all my other creditors and if I cant afford to pay the others, then I cant afford to pay MBNA either! I'm still waiting for written confirmation of a loan balance from MBNA to get my proposal moving, and its been over a week now, and its so frustrating as this is the only thing holding it up! [:(!]
