will I still be able to keep my bank accounts?

[laura.w]

Hi, If I undertake an IVA will I still be able to keep my bank accounts?

[pbeck]

You should be able to, if they are in credit. If they are overdrawn, then you should open a new account with another bank before you start the IVA process, get your earnings and essential payments transferred over to the new account, and then the old one will become another creditor in the IVA.

Philip Beck

Licensed Insolvency Practitioner and IVA specialist

[iva.com]

Hi Laura,

If your bank is one of the creditors that will be included in your IVA application then you should open an account with another bank.

A number of posters on here have stated that Cooperative Bank and Think Banking are very good.

Kind regards,
Terry Balfour
IVA.com

IVA.com - The IVA Comparison Site
100s of reviews, All IPs and IVA firms rated.

Use our IVA firm comparison tool to find best IVA firm for you:
http://www.iva.com/iva_comparison_1.asp

[laura.w]

Thanks for the advice. I have two accounts, both of which are in credit. One of them, Barclays, is also one of my creditors. They did allow me to keep the account after my DMP but changed it to a basic bank account. I have my review for my DMP this evening, I always stress about them! My circumstance have changed since my last review and I am worried that that company dealing with my DMP will say I do not have enough spare money each month to continue the agreement. Is there a precentage of your income that needs to be given over to your creditors?

[pbeck]

Laura

If your income is reducing then perhaps you should consider an IVA, DMPs are only suitable as a short(ish) term solution, unfortunately there are people who are sold DMPs that will take well over 10 years to clear their debts.

There is no set percentage of your earnings that must be paid over to your creditors, it all depends on what your earnings are and how much yuor living costs are.

With your new circumstances, how much debt do you have and how much could you afford per month towards them ?

Philip Beck - www.freeivaadvice.co.uk

Licensed Insolvency Practitioner and IVA specialist

[laura.w]

Hi Philip,

My debt is £61,000!![:0]!! I have £150 per month to give to the creditors. When I first did the DMP it was estimated that it would take 22 years to pay of my debt, I started the DMP in 2005!

[pbeck]

Laura

Unfortunately your residual income is too low to do an IVA, and it seems to me that you were mis-sold a DMP, it simply isn't reasonable to expect people to take 22 years to repay their debts.

Have you considered bankruptcy ?

Philip Beck - www.freeivaadvice.co.uk

Licensed Insolvency Practitioner and IVA specialist

[Emily]

Pbeck, Can you really be missold a DMP if you are not paying a fee towards it?? One may be given inappropriate advice I grant that.

[laura.w]

I am considering bankruptcy although I have not got much details about it. I was put off by hearing stories of not being able to keep bank accounts and solicitors fees/court costs. Any good info guides you could recommend?
In a few months my spare money will at least double to £300, I am currently paying back an overpayment of council tax and housing benefit which is why my residual income is so low.

[Skippy]

I went BR last year and it wasn't as scary as I thought it would be. I have put all my experiences (good and bad!) in my blog.

Yesterday is history, tomorrow is a mystery, today is the present - a gift to make the most of.

View my blog at http://skippy13.blogs.iva.co.uk/

[laura.w]

Thanks Skippy13! Will have a read!

[cr15py]

If your spare income goes up to £300pm, then this would be an approx dividend of 20p/£ for an IVA, which I think is on the borderline for whether it would be accepted - one of the experts will give a better view.

No idea re: BR though I'm afraid!

Visit my blog at http://cr15py.blogs.iva.co.uk

[laura.w]

Hi Emily,

OMG!! 50% of my income! My rent is almost 50% of my wages, not sure what the IPA is yet but if they want 50% too I am not sure how it is going to work.

[Skippy]

Can I just clarify that you would pay 50% to 70% of your SURPLUS income into an IPA, not your your total income.

Yesterday is history, tomorrow is a mystery, today is the present - a gift to make the most of.

View my blog at http://skippy13.blogs.iva.co.uk/

[laura.w]

Phew!! Thanks Skippy. Severe panic attack about the propsect of giving up 50% of my income, LOL! I think I need to get more of a background knowledge into IVA's / Bankruptcy, am finding the jargon and abbreviations quite confusing.