www.iva.co.uk

hi,
can someone help me please. i am considering entering into an iva, but am extremely worried that if my current business accounts are closed down, how will be able to open a new basic business account after i have statred the iva?

Do you have reason to believe that they will be closed down?

Are the accounts currently in an overdraft position?

Do you owe money to any other area of your current bank, such as on a credit card?

I think if you can answer yes to any of those above, in all likelihood, your accounts will be closed down by the bank.

However if your accounts are in credit and you do not have other credit or borrowings from the bank, you should be okay. It is extremely unlikely that you will be allowed to operate an overdraft facility in an IVA. That said it is worth checking the bank's terms and conditions on those points.

Hi
If,as Cybus has stated,you have debts with your bank that holds your business account then you will,almost certainly,need to change accounts.The secret is to do this pre IVA and to use a non creditor.
Regards

thanks cybus and andy for your feedback. yes i do have overdrafts and credit cards with my current business accounts. myself and my husband have debts with almost all the creditors that offer business accounts, so i doubt they will open a new business account for us. if we were to offer a f&f settlement for our debts, would it be better than entering a five year plan. we have a lump sum to offer our creditors from the sale of a property. will this make it any easier for us to be able to open a basic business account with no overdraft facilities?

Hi
The IVA will be on your file for six years regardless of whether it is a five year IVA or a full and final one.
Do you have debts with rhe Alliance and Leicester ?
Regards

Hello,

When you mention offering a full and final settlement do you mean doing so informally (i.e. not within an IVA)?

we were declined by alliance and leicester about 4 weeks ago, when we tried to open a business account online. we are hoping to offer the f&f settlement through an iva.

Where will the money come to enable to full and final settlement to be offered? Is this coming from a third party?

the lump sum will be released from the sale of our second home.

And does this leave you with no disposable income to offer to creditors once the second property has been sold?

yes we will have about 300 pounds disposable income left over, per month after paying the lump sum to creditors. we are self emploted.

The I do not see creditors accepting a full and final settlement on that basis - I feel sure that they will want to sale proceeds and payments of £300 on top for the next five years.

Have you consulted an IP to act for you yet and, if so, what have they advised?

yes i have consulted an i.p and i am waiting for a reply.

But a full and final settlement might still work outside of an IVA if it represented a fair and reasonable offer to creditors?

Hi lsa

Have you been recommended to the IP that you have started to speak to? This is such an important decision that you almost have to have a recomendation because you are putting your absolute trust in them geting it right.

You also need to have a good working relationship otherwise it may turn out to be a nightmare.

I would suggest you speak to Melanie to double check the IVA route, and if this is not possible then Andrew is right a non IVA negotiated settlement would probably be possible. Again Andrew comes highly recommended and I know that he can arrange this for you.

action plan - call Melanie 1st then if not possible speak to Andrew.

Take care