Hello,
This is my situation and hoping that someone will be able to assist in a recommendation.
• I have just entered into an IVA in the past couple of months.
(creditors are: Barclays, Amex, New Day, HMRC)
• I am a VAT registered Sole Trader
• I may be in a position in the next few months to become a director & shareholder of a newly formed limited company with my partner (wife)
• she doesn't have any link to my IVA.
• We need to acquire a new Business Bank account in order to form the new company. However HSBC has declined the initial meeting - the computer said "no" because when they did their credit checks on us as directors, that something was flagging in their system against our home address.
Question:
1) Can the bank account the set up in my wife's name only? - Whilst remaining as a director & shareholder, or will I need to not be a director and just a shareholder instead?
2) Is HSBC IVA friendly?
We both hold our existing Business Bank and personal accounts with them.
3) are there any UK Banks that offer business bank accounts for directors currently in an IVA.
Hi. I cannot help with the most part of your query -- but can sy that HSBC are probably the LEAST IVA friendly bank. They are renowned for closing down accounts of customers in an IVA, even when they are not a creditor. Until you are settled with new accounts give them no reason to look at you in any detail and hope that they do not notice.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
You only need one director to set up a LTD company I don't even think a company secretary is required anymore. Just have one share each if you see what I mean and be paye to the ltd company. And a ltd company can be very useful to you whilst in an IVA makes life a lot easier!
Item 3 I doubt it very much, suffice to say banks won't lend you a pencil with an IVA strapped around your neck. Best stay in the background and let your wife front it to make set-up easier
'Cash Plus' and 'card One Banking' both do iva friendly business bank accounts. Alternatively, Google 'guaranteed business bank account' and for a fee, there are companies that will help you out.
Some accountants also provide assistance with setting up business bank accounts.
Your Wife may not be in the iva, but her financial association with you means that she too may struggle to open a high Street bank account.
Interestingly, if your HSBC business account is in a ltd company name, you should be OK (got my business account with HSBC also), as the company is a separate entity to you as an individual. They will probably make you close your personal account though, as 'First Direct' did with me.
So be prepared to hunt for a new personal account soon as well.
Good luck.
Last edited by UpToMyNeckInIt on Tue Oct 07, 2014 10:01 am, edited 1 time in total.
My opinions are just that: Based on my experience and being a self-employed IVA customer.
Perhaps it would be better to have the company fully owned by your wife and she could be sole director. You could work as an employee which would make things so much easier and keep the company away from your IP and creditors.
Make sure and get some proper advice before you decide what to do and make sure the articles of the company allow you to be a director.
