Questions about Individual Voluntary Arrangements and Insolvency.

Moderators: TalbotWoods, JaneClack

By adv_sheff
#124571 Hi all,

I've just spoken to employee accounts (for anyone that has read my previous post, I work for a financial institution in IT).

They can't advise me what route to take, but in terms of my relationship with them from a banking point of view they have stated the following:

DMP - I can probably keep my cheque account and have SO and DD's
IVA - I have to have my salary paid to them, so they would allow a savings account with one monthly SO to take the money out of the account.

I really don't know what route to take, I felt an IVA was for me because of the fact its a contract - but the impression I get is that my future credit worthiness (mortgage, bank account etc) will be very bad post settling the IVA.I was fearful of a DMP as Ive read about CCJ's, debts being sold on to other company's, etc.

Im still making all my monthly payments a will be able to do so for the near future, but the debt is rising slowly.

I think the fact that I am not worhty for abanking facilites by my employees had made me realise just how bad people are going to view me.


Payplan have assigned me an IP, but I havent progressed down that route yet, so I could still try out a DMP and see whether all my creditors go for it... I have 3 MBNA cards (tesco, mbna, virgin) and I belive these can be really awkward.

I would really appreciate some advice... I'm getting bogged down with so much information..

thanks,
Alex
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By TalbotWoods
#124601 Hi Alex

OK I'm going to admit to being a tad confused about this one.

Irrespective of what sort of method you use to deal with debts, it is up to you how you deal with your banking, not your accounts department.

There are people in both DMP's and IVA's that have fully functioning accounts. so you will appreciate if I seem a little skeptical about what employee accounts have told you.

I, and no doubt nearly all the other forum users who are in IVA's, will be perplexed by this one, as generally you can bank with who you want to (within the limits of which banks will accept you), and I know many of us have for example the Co-op cashminder account, which is fully functioning but just doesn't have a cheque book!!!

I think you need to defiantly talk to your nominated IP about this as it maybe your employee accounts are a tad confused as well!!

Tim
By adv_sheff
#124606 Hi,

I work for firstdirect (HSBC) and have told them my plans.. as far as employment goes I have been told there is no problem.. in terms of having banking facilities once in an IVA (employee or customer) the rule is written that it is not permitted to have a bank account.

However my salary MUST be paid into an fd account, therefore they will let me have a savings account with 1 SO to transfer the money out.

thanks,
Alex
By road2recovery
#124615
adv_sheff wrote:Hi,

I work for firstdirect (HSBC) and have told them my plans.. as far as employment goes I have been told there is no problem.. in terms of having banking facilities once in an IVA (employee or customer) the rule is written that it is not permitted to have a bank account.

However my salary MUST be paid into an fd account, therefore they will let me have a savings account with 1 SO to transfer the money out.

thanks,
Alex


If the salary really MUST be paid into an FD account (seems strange but hey, financial institutions are weird things), then fine, have it paid into their offered savings account, with the ONE standing order they will allow you transfering the whole amount to another bank account with facilities. I am in an IVA, and have a Nationwide account, which lets me do DD, S/O, third party payments, cashcard etc. I dont have a cheque book, but can have cheques wrote by the bank if need be, and dont have a debit card, so I use a CashPlus card which is a prepay mastercard.
By £76K
#124620 To be honest, I would not worry take the Savings account & Standing Order if you want the IVA.

It is standard requirement for all bank employees to be paid into a bank at that company
By adv_sheff
#124622 ok thanks for the advice... road2 recovery, does the account you have with nationwide have a name, or is it one of thier current accounts?

In addtion, did you open this account after you got an IVA or did you have a banking relationship with them first?
By £76K
#124624 Sheff,

You should be able to get a co-op cashminder or a Nationwide Flex now regardless, these are basic accounts. You may also be able to get a full account with all the bells & whistles with someone who is independant of you current creditors.
By adv_sheff
#124632 ok, I'll have a look around.

I dont actually have any credit with my employers, but Im guessing that they will find out if I do get an IVA or DMP (Ive told them Im thinking about it anyway).

thanks,
alex