www.iva.co.uk

I'm a director of a limited company which is made up of myself and my wife. I'm about to start an iva on my own but I've been told by my accountant that the directors loan outstanding at present by company should be included into iva. This now seems like I have become a creditor to myself.
Is this possible/ correct advice?

Hi

Yes I think it is the correct advice, your limited company will be a creditor in your IVA rather than you directly. The Insolvency Practitioner dealing with your IVA will be able to advise correctly

Regards

It is the correct advice but your limited company would be an associate creditor so while the company could vote it is possible other creditors say it cannot be paid from the IVA. This is not uncommon.

Andy / Michael,

Thanks for the responses. It's still all very new to me and I'm learning all the time.

Don't you mean that the loan is the other way round Yameye - i.e. the company owes you the money rather than the other way round? If this is the case, then your IP will need to understand why you have been lending the company money, and when and how the company will be able to repay the loan. This is a personal asset of yours which creditors will expect to benefit from. How much is the loan currently standing at?