Is an IVA for both personal & business debts?

[pont]

Is an IVA for both personal & business debts?
I have mainly personal debts and a few business debts. I am a self employed sole trader. My personal debts are crippling me and starting to effect my business, which is actually doing pretty well. Could an iva help with both debts? I rely on my car, without it I could not trade. This is on HP. Would I still get to keep my car and pay the HP seperate to the iva. Also would i be able to keep my business account with my current branch (to whom I owe most).I'm getting a little desperate now. Any help would be greatly appreciated.

[Adam Davies]

Hi
In an IVA you would need to include both personal and business debts,so it may cause you problems to continue using your existing creditors.It is likely that you will be able to continue paying your car HP outside of the IVA and once completed to increase your IVA payments by the amount of the HP payments.
If you have a business overdraft and are into it then this account would be part of your IVA and you would be unlikely to be able to keep using it[ultimately this will be upto your bank to decide]
Even if you have no overdraft there is no guarantee that your bank will not close your account as you have other borrowings with them
Regards


Andy Davie
IVA.co.uk Spokesperson and Website Manager

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[ellie 553]

Hi Pont - We had a meeting with an insolvency practitioner this morning to discuss our business & personal debts. When I asked about the bank account situation they recommended the Alliance & leicester. Only prob is we may not be able to take credit card payments which would be a total nightmare for us as its 50% of our takings. It seems to depend on the type of business you are in as to which aspects of being in an IVA could cause the biggest problems.

[Adam Davies]

Hi ellie
There are third party companies that will process your card transactions on your behalf,at a cost.Have a search on the web
Regards

Andy Davie
IVA.co.uk Spokesperson and Website Manager

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[ellie 553]

Hi Andy I just had a quick look but they all seemed to be based in the US. Is there any reason why I would have to change providers or stop accepting card payments in an IVA ? It seems to be a win/win situation for the card services provider as there is no way I can build up a debt with them !

[Adam Davies]

Hi
I think it will depend on whether you have to change business accounts or not.If you have to then do this pre IVA then you should be fine.I know that the banks do credit searches when you apply for card processing services but maybe you can stay with your current provider and just move accounts.
I know what you mean about win win situation,they charge you to process a card and the card holder.
Regards


Andy Davie
IVA.co.uk Spokesperson and Website Manager

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[ellie 553]

When you say pre IVA does this mean before the meeting/ when we make the deicsion/ or when our proposal goes out?
I am going to let the IVA company know on Monday that we want to go ahead. He has advised to stop all non essential direct debits immediatly.
We have the problem that we need to pay the wages on Thursday, and also what do we do with our takings in the meantime. What date does the IVA start & what is the cut of point for debts in an IVA.
I am trying to prepare a cashflow & it's hard to know what to put in and what to leave out debt wise. I was thinking that the end of this month would be best but dont know if thats my decision to make.

[Adam Davies]

Hi
Your IVA starts once it is agreed at your creditors meeting and this is also the cut off for your debts,so you have a few weeks to look for a new account etc
Regards

Andy Davie
IVA.co.uk Spokesperson and Website Manager

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[Beechy]

Hi
I had a client that went to the RBS for their business account, who also provided thr equipment to do credit card sales.
Might be wortha try if you dont currently owe them any money. Barclays might be worth a call as well for the business account.

Dave Beech

[ellie 553]

Thanks Dave - it's worth a try !