how will IVA affect my ability to be co director?

[tom123]

Hi there. I hope you can help with my question.

I am in a very poor situation with debts way more than I can service. Following an expensive divorce a couple of years ago. I am now £54000 in debt.

To cut a long story short, I am thinking of an IVA - I know I meet all the criteria - however I hold aspirations of running my own business.

If I have an IVA, will that affect my ability to be a company director - I know technically I can be a director but will I be able to open company bank accounts, get credit in the company name (from suppliers) and generally operate a normal limited company? or will my personal credit record have an impact on any future business I own?

Thanks
T

[MelanieGiles]

Hi Tom and welcome to the forum

If you want to run your own business, and IVA will not prevent that, but the business will need to provide you with a regular income and that can be difficult in the early days of trading - and you may also have difficulties in sourcing lines of credit should your business need to.

You can also act as a director of a limited company whilst in an IVA, but again bank borrowings will be difficult to source if you are in an IVA.

The best thing to do is put together a business plan that identifies your funding levels (if any). What sort of business would you like to establish, and would it be just you or do you have parthers who could also invest?