| |
An Individual Voluntary Arrangement will not prevent you from holding a bank account but you are strongly discouraged from incurring any further debt when you are under the terms of the IVA agreement. That means; no overdraft facility, no cheque book, no credit of any kind.
This limited service is referred to as a basic bank account and for anyone considering the Individual Voluntary Arrangement as a solution to their debt problems, it’s the smartest option. So, open a basic bank account with a provider that’s not on the list of outstanding creditors stated in your IVA. This bank account will allow you to pay in your wages, state pension or other benefits; make cash withdrawals and uphold some direct debits. However, there will be no overdraft facility or other access to credit.
If you are concerned with overspending and looking to impose a level of control, a basic bank account has the added appeal of limiting your spending to only what’s in your account. Obviously, as you’re able to set up some direct debits, you have to stay on top of the situation and take more control over your finances. As you don’t have any overdraft facility, if there isn’t enough money in your account to cover any direct debits, you’ll fail to meet the payments and be charged.
The basic bank account was developed in response to a government initiative that aims to help all those who would struggle to open a normal bank account have access to banking facilities. Tackling your debt with an Individual Voluntary Arrangement should not prevent you from having access to these facilities either. So, those with an IVA can hold on to their current account but it might be more suitable to switch to a basic bank account.
Do you qualify for an IVA?
For more information see:
IVA Helpline
|
|
| |
|
|
|
