how would an IVA affect my business

[chuck]

I have approx 70k in unsecured debts and a 12k business overdraft. If i have an IVA how would this affect my business. Would I still be able to trade. I have an annual turnover of around 80k and pay three peoples wages + my wage.

[MelanieGiles]

Hi chuck and welcome to the forum

Your IVA would need to include the business overdraft (assuming that you are a sole trader and not a limited company). Therefore you will need to find alternative banking facilities for your business.

You are allowed to continue to trade, but must not seek any forms of credit outside of your usual trading terms. The IVA Supervisor will want to see your accounts when they are filed with HMRC in order to ensure that you are paying a fair level of contributions.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[chuck]

Thankyou for your reply. How do I get alternative banking if i'm in that situation. A lot of my receipts are in cheque or into my business bank account. also my wife has credit debts that she is managing to pay how would this affect her.

[MelanieGiles]

Chuck

You will need to approach another bank to whom you do not owe any money. It may seem a nightmare to have to do this, but in reality it is very simple.

If you were to enter into an IVA, your wife is unlikely to be affected, so long as she is paying her fair share towards the household shared expenses in proportion to her income.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[chuck]

Thankyou so much for your help in this very worrying time. I probably have a thousand questions but I hope you don't mind me asking them as I think of them. I have direct debits comes out my business account for a computer course I am studying at the moment ( to try and boost my income ) also Life Insurance, Pension, Van Insurance (used for my business). How would these be affected. Would the new bank take these on. Would I still be able to trade with the same business name and would I have to tell the new bank I am applying for an IVA.

[MelanieGiles]

Hi chuck - ask away that is what this forum is all about!

You will need to get the direct debits transferred to the new bank account. This is usually done quite smoothly by the new bank.

Yes you can trade with the same name - the business is still very much yours, and your IP has little involvement with the day to day running of it. No, you do not need to tell the new bank that you are thinking of applying for an IVA - but obviously do not ask for any credit facilities.

Speak again soon!

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk