IVA and Your Bank Account

An Individual Voluntary Agreement will affect your financial status.

You may be restricted from opening other accounts and incurring other debt while your IVA is active. Opening a new bank account prior to entering into an Individual Voluntary Agreement is advisable.
You will need a new bank account once your IVA is put into action since you will be making your monthly payments through a separate bank account that is directly under your name.
If you have an account with a bank that you don't owe any money to, you can keep that account;
However, if you do owe your bank money, as either a credit card, overdraft, or loan, it is probable you may need to change/create a new account with a separate bank.

When opening your account, if they do ask questions about your IVA proposal, tell the truth. You need to open an account at a bank you do not have any outstanding debt with.

It is better that you open an account at a bank that is not one of your listed creditors or is affiliated with them. Be careful as some financial houses may be owned/run by the same company. To avoid any problems, you will need to make a list of the accounts available to you and find out which banks are affiliated with other finance houses.

The type of account you can get will depend on your credit rating and history:

If your credit history is in good shape, you will be able to apply for a current account which comes with a cheque book and a debit card; however, an overdraft facility may make you breach the conditions on your IVA.
If you have poor credit history, you may then be only able to apply for a cash card account. This is a simple bank account without any credit services – you will not be provided with a cheque book or a debit card. Not having a debit card may be inconvenient, this is a fact you will have to deal with especially when you have an IVA.