I've been recommended an IVA for myself and am worried how this will affect my bank accounts. I have both accounts (business & joint personal) with the same bank along with a credit card to be added to the IVA.
The business is a limited company run by my wife and myself, so this I believe should be treated as a separate legal entity and cant be touched to off set against any personal debt. However there is a personal guarantee from myself on any business debt. I don't know if this will count towards an off set?
I know I need to get myself a new account elsewhere not connected to any debt, does this need to be a basic account or can it be an ordinary account? Can a bank (that I have no debt or link to) close this new account if I get accepted for the IVA?
I opened 2 accounts just before the IVA started and, touch wood, neither have been a problem in nearly 4 years (both accounts are with banks that have nothing to do with my IVA).
I also have a ltd company and opened a couple of accounts for this at the same time just in case anything happened. Funnily enough one bank who I owed a lot to personally approached me to open a business account, the business manager said it would be easy as I was on their system with a good business track record!!!
Before I entered an iva which was in august 2007 I opened a cashminder account with cooperative bank I have been with them since this is just a basic account you need to open a basic account for the iva. I finished paying mine in august 2012 but still waiting for a completion certificate.
Last payment made August 2012 Certificate of Completion recieved 15th of Novenber 2013.
The limited company account should not be effected, but have you personally guaranteed any of the limited company debts?
Make sure you choose an IP firm who is experienced in dealing with trading businesses, and can give you the correct advice about how all matters which are intertwined between domestic and business affairs will be dealt with.
Hi Melanie, I have personally guaranteed business debt and balance sheet is -25k or so. Company profit is circa 50k per year, but dividend was increased to cover cc payments in bad times. Business is good, but personal debt is crippling. If accepted for iva, then I hope to get business back in the black and move forward from there.
