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Posted: Mon Mar 03, 2008 4:00 pm
by littleted
Is it possible to open a business account whilst in a IVA? My current business account is with one of my creditors.
Posted: Mon Mar 03, 2008 4:09 pm
by Adam Davies
Hi
It's near impossible once in the IVA but if you are still pre IVA then you may be lucky.
If you are unable to move the following company have been able to open an account for a forum member before,but you need a healthy initial deposit[5k],although you can withdraw this once opened.
www.secretariatservices.net
Posted: Mon Mar 03, 2008 4:15 pm
by littleted
Thanks Andy
I am pre IVA, but somehow feel a fraud trying to open a new account knowing full well what is about to take place! I am looking at a business account with the Abbey with no lending, and notice on the application the dreaded "IVA question" which I suppose at this point I am not actually legally in an IVA?
Posted: Mon Mar 03, 2008 4:23 pm
by Adam Davies
Hi
No your not,so can answer truthfully.Your not taking any credit nso are certainly not a fraud.I managed to get a business account with the Alliance and Leicester after my IVA concluded,so may be worth a try if you have no luck with Abbey
Regards
Posted: Mon Mar 03, 2008 4:37 pm
by littleted
I am in a minefield being self employed and entering into an IVA.
Trying to think of anything that will help me to keep trading fairly smoothly, as my ability to pay depends on my trade. Stress level just a bit high!!
Thanks for the Alliance and Leicester tip.
Posted: Mon Mar 03, 2008 4:44 pm
by ianmillington
I have seen instances of Lloyds TSB agreeing to operate a Business Account for someone about to go into an IVA.
Ian
Posted: Mon Mar 03, 2008 4:46 pm
by Adam Davies
Hi
Make sure that you have a face to face meeting with your IP[they should insist on it]and that you discuss your payment options.From memory Melanie Giles allows her self employed clients to pay the agreed monthly amount over a three month period[slap me if I'm wrong Mel]so that it allows for the ups and downs.
Good luck and keep posting
Regards
Posted: Mon Mar 03, 2008 4:55 pm
by littleted
Lloyds are my creditors, which is unfortunate as I have a great relationship with my business manager.
I am in the early stages of paperwork with Clearstart so haven't yet had any contact with my IP, but I find the 3 month period interesting as obviously trade can fluctuate. Does anybody have any experience with how "commercial" debts get voted? I haven't heard great things....
Posted: Mon Mar 03, 2008 4:58 pm
by Adam Davies
Hi
What percentage of your overall debts do they take ?
Regards
Posted: Mon Mar 03, 2008 5:03 pm
by littleted
£32k out of £80k, that is a mix of £20k business loan and £12k personal credit card
Posted: Mon Mar 03, 2008 5:09 pm
by jpj
Some banks seem to keep their business banking totally seperate from their personal banking and dont swap details! Barclays was my biggest debtor with 80k debt, but I was never asked to close my business account,and still use it now (despite opening another elsewhere) granted ,it is never overdrawn obviously.
Posted: Mon Mar 03, 2008 5:11 pm
by jpj
Littleted has a business loan as part of his debt,so above advice no use to him then!
Posted: Mon Mar 03, 2008 5:13 pm
by littleted
I don't really want to close my account with Lloyds, but I thought you couldn't bank with one of your creditors. I feel so confused at what to do for the best. I have continued paying the loan so far .........
Posted: Mon Mar 03, 2008 5:24 pm
by jpj
In your case you couldnt as you will have to include the business loan in your IVA as an unsecured debt,so they will close your business account. I didnt owe any business debts, only personal ones.
Posted: Mon Mar 03, 2008 5:30 pm
by littleted
The thing that makes me sick is that my business is profitable and well established, it's my personal debt from my divorce that has landed me in this position. Aaarrrgh where's the magic fairy to guide me!