IVA and Limited company (partnership)

[jpj]

Im currently self employed (sole trader) and am looking at setting up a second company ( limited company) with a friend. At present the friend doesnt know about the existance of my IVA as i have viewed it as a personal matter and we have always kept everything on a professional business level.. Am I going to find that banks will refuse to give the limited company a bank account because of my credit history? (we dont need any borrowing or overdraught facility)
My current business will continue to trade and pay my IVA so there is no pressure on the new limited company.
Thanks JPJ

[MelanieGiles]

Hi jpj

It is possible that you may not get funding due to the IVA, as banks will credit check directors and shareholders of newly formed limited companies which do not have a credit history. I definately think you should mention this to your friend, as any future failure of your IVA may well affect your shareholding in the company if you were to be adjudged bankrupt. It is only fair to make him/her aware of any risk from the outset.

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

[jpj]

Thanks Melanie
Your a rock for all us IVA ers )