Except for the very few, we all need a bank account. And for many entering an IVA, they owe their own bank. Either an overdraft, a loan or a credit card (or all three!). In such cases the debt has to be included in an IVA proposal (we are not allowed to show preferential treatment to one creditor over and above another by leaving a particular debt out of the IVA) and the bank will freeze our account. Thus a new bank account with a bank we have no debt with will be necessary. 

For many, this is obvious and easy to arrange.  Applying for a basic account (no credit facility) is relatively straightforward and switching income and standing orders can be done either by the bank possibly or by the debtor certainly. For others, we have become so used to our existing bank that the thought terrifies us. Alas, there is no real way round this. A fresh start with no overdraft is required. Despite what may already be a poor credit rating, it should be perfectly possible to open a new account with the basic facilities – debit card, standing orders, online banking etc.