Can IVA freeze your bank account?

An Individual Voluntary Arrangement (IVA) does not have the power to freeze your bank account. An IVA is a legally binding agreement that allows you to reach an agreement with your creditors to pay off your debts over an extended period of time. As part of the IVA process, you will be required to make regular payments towards your debts, but your bank account will not be frozen as a result.

However, if you fail to make the required payments under your IVA, or if you do not adhere to the terms of the agreement, it may be terminated. If your IVA is terminated, your creditors may seek to recover the debts you owe through other means, such as applying to court for an order to seize your assets, including your bank account.

It is important to be disciplined and consistent in your efforts to make the required payments under your IVA, as failing to do so can result in the IVA being terminated. If you are having difficulty making your payments, it is a good idea to speak with your IVA provider, also known as an insolvency practitioner, as soon as possible. They may be able to work with you to find a solution.