IVAs

[desicon]

I understand that all creditors have to be included. Does anyone know if an IVA will affect the normal running of a business bank account(Limited company), which has an overdraft facility[?].

[TheMatrix]

I think Limited companies are separate legal entities in their own right. I'm sure a expert will be along shortly to advise further

[MelanieGiles]

Hi there and welcome to the forum

If you are running on overdraft, and you trade as a sole trader, then yes I am afraid that the IVA will affect the bank account as it will have to be included as a creditor. If the account is in credit, and the bank is happy for you to keep the account, then it will not be affected, but you will not be permitted to use the overdraft facility throughout the IVA.

Hope this helps!

[MelanieGiles]

Sorry - I should read properly! Did not notice the bit about the limited company! You would need to discuss your personal situation with the bank, but in principle there is nothing to stop you keeping the limited company account - unless you have personally guaranteed the overdraft and then this would need to be included in the IVA as a contingent liability.

[desicon]

Many thanks for info Melanie (and inaiva). Yes I have personally guaranteed overdraft but the account has kept running smoothly - the only problem is the reduction in business due to current climate. I will be realistically monitoring my situation on a weekly basis and if I feel a possible IVA coming on, will contact you Melanie.

[Soulgrowth]

Just wanted to say good luck ... the most important thing is to keep on top of things at a time like this ... keep the control ... it sounds as if you are managing to do this.

Do keep in touch with the Forum and let us know how you get on.

Debbie

[TheMatrix]

I don't think you can go far wrong with Melanie, If I could go back in time I would have took mine out with her.

[Skippy]

I would definitely have gone with Melanie had I known about her when I looked into getting an IVA. She gives good honest advice and I think things may have worked out differently with her advice.

[Soulgrowth]

Me too [:)]

Debbie