limited company

[kpw]

Point of info?
If someone runs a ltd company which pays him a salary from the companys bank a/c, if he has personal c/c and loan debt with the same bank and he enters inta an informal arrangement with his creditors, can he continue to operate company bank a/c without the bank taking monies out against his personal debt?

[MelanieGiles]

Hi there

Probably - but check with the bank to see if they have a specific policy with regard to this type of thing. As the limited company is a separate legal entity from yourself, there should be no reason why it cannot continue to operate the account, unless it is overdrawn and you have personally guaranteed the balance.

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

[kpw]

thanks melanie for the information