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dazed and confused
Junior Member
United Kingdom
475 Posts |
 Posted - 13 June 2008 : 14:18:07
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Dear Forum
Have been considering an IVA, but am now thinking more about BR - 2 questions:
Can you still have a Bank Account during BR?
What happens if you initially enter into an IVA and then go bankrupt? What happens with the IP fees for the IVA? |
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m and v
Average Member
United Kingdom
760 Posts |
Posted - 13 June 2008 : 14:31:46
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Hi Dazed
I have just come out of an IVA and gone BR so can tell you how it happened for me.
You will have an IVA agreement and within that it will state whether within the IP costs there is an allowance should you go BR.
I petitioned for my own IVA and so paid my own fees. The money that I had paid into my IVA, was used first to cover my IP's fees and the remainder went to my creditor...they didn't get a lot!
Melanie Giles will be able to give you more detailed advice as she is an IP - and tell you what happens if you've not paid in enough to cover IP fees.
As for a bank account - yes you can have one - you need to find a BR friendly bank like the co-op and you can have a basic account without any credit facilities such as cheque book, overdraft etc.
The co-op cashminder is fine, has a debit card and can be used for wages, direct debits, standing orders etc..
Hope this helps
Vicki x |
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dazed and confused
Junior Member
United Kingdom
475 Posts |
Posted - 13 June 2008 : 15:30:44
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Hi M and V
Thanks for your reply and the info. you provided!
Just a couple of more questions if you don't mind?...
With the bank account, Coop is one of my creditors so that could be a problem! Did you have to change banks twice then - once for the IVA and again for the BR, or did you just stay with the Coop for both?
How much did it cost you to go BR and how long did it take? |
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m and v
Average Member
United Kingdom
760 Posts |
Posted - 13 June 2008 : 16:08:59
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Hi dazed
You may find co-op are still happy for you to have their basic cashminder account.
The issue of accounts is in the hands of the banks I'm afraid.
Whe I went into my IVA Lloyds TSB closed my account (they were a creditor) I never bothered opening another account during my two year IVA jsut used my husbands.
I opened my cashminder account the day after going BR and had no problems.
It cost me £495 to petition for my own BR - I stopped paying my IVA payments to save this. If you are on certain benefits for may qualify for a reduction in this fee.
Cheers
Vicki x |
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m and v
Average Member
United Kingdom
760 Posts |
Posted - 13 June 2008 : 16:10:31
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.....and it took me about two weeks to prepare the form, my court date was on 18th April and my OR interview on the 9th May. All done in about a month but some courts/ORs are a bit busier and takes a week or so longer.
Vicki x |
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JulianDonnelly
Junior Member
United Kingdom
325 Posts |
Posted - 13 June 2008 : 19:59:31
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Great advice as usual Vicki.
Regards
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk |
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melanie_giles
Senior Member
1191 Posts |
Posted - 15 June 2008 : 18:00:32
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If you cannot decide between an IVA or bankruptcy, it might be worth arranging to have a chat with an Insolvency Practitioner to get some free an independent advice as to the advantages and disadvantages of each option.
For an informal chat about any financial difficulties, or advice as to the options available, I can be contacted via my website - www.melaniegiles.com |
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BR and Bank Accounts...
