www.iva.co.uk

This might be a little off topic, but here goes anyway.

I am in the process of drafting my IVA proposal. I am a sole director of a limited company, and the company has ceased to trade. There is an overdraft of approx £1,000 which as far as I can see I would be liable for (with HSBC). Other than putting the company in to liquidation, for which I might be liable for the debts anyway, could I bring this into my IVA? Unlikely I think, but worth asking.

Hi cr15py

Have you personally guaratneed the company's overdraft? If so, you should include this as a contingent liability in your IVA. Does the company have any assets, which could be used to pay for a liquidation? If not, then you are probably better off requesting for the company to be struck off the register, which does not cost anything.

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

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

I assume there is no way of telling other than asking. The overdraft is an "unauthorised one", to be honest the company has probably cost me about £3,000 which is one of the (several) reasons I am having to enter in to an IVA.

The company doesn't have any assets. All the balance sheet shows is two creditors (bank and my directors loan account) - the profit and loss account reserve is a debit figure of approx £3,000.

Correct - you should ask the bank if you cannot remember if it was guaranteed.

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

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

As a general rule of thumb, are HSBC limited company bank accounts with NO agreed overdraft generally guaranteed when the account goes overdrawn (i.e. an unauthorised overdraft)?

I depends upon what was agreed with your bank manager at the time and what you actually signed up to. There is no rule of thumb on things like this.

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

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

I think you might need to read the legal document when the account was opened.

Generally banks only request guarantees if an overdraft is requested.

If the bank allowed the account to go overdrawn and no guarantee was provided and no clause was included about you being personally liable for unauthorised borrowing then you may be able to avoid this.

Also you might want to look at the charges as this whole area is subject to a court case in January.

Hope this helps