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Posted: **Wed Apr 11, 2007 6:30 am**

Hi there, My husband and I are considering an IVA after racking up substantial credit card debts over the past few years that we cannot make any headway in paying off. We are self employed though and I am concerned about our bank accounts.

We have a personal account with small overdraft and a loan, plus a credit card all with Natwest - our btwo business accounts are also held with the Natwest though and our concern is that they will foreclose on these and force us into bankruptcy. We have banked with them for 20+ years and at the moment have no adverse credit as we are managing at the moment pay everything. Where do we stand with other bank accounts held at the same bank??

Posted: **Wed Apr 11, 2007 9:26 am**

Hi gra and welcome to the forum

Your bank accounts will need to be closed as you have existing debt with Nat West and they will exercise the right of set-off if you enter into insolvency proceedings. I suggest you get new accounts opened now before you go any further with any form of insolvency process.

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

Posted: **Wed Apr 11, 2007 6:53 pm**

gra wrote:

Hi there, My husband and I are considering an IVA after racking up substantial credit card debts over the past few years that we cannot make any headway in paying off. We are self employed though and I am concerned about our bank accounts.

We have a personal account with small overdraft and a loan, plus a credit card all with Natwest - our btwo business accounts are also held with the Natwest though and our concern is that they will foreclose on these and force us into bankruptcy. We have banked with them for 20+ years and at the moment have no adverse credit as we are managing at the moment pay everything. Where do we stand with other bank accounts held at the same bank??

Posted: **Wed Apr 11, 2007 6:56 pm**

Thanks for the reply - the account i am concerned about is our business one which we have in the name of our Limited Company and is the main source of our income and currently has an overdraft of £12,000 that we could not afford to move to another bank.

gra wrote:

Hi there, My husband and I are considering an IVA after racking up substantial credit card debts over the past few years that we cannot make any headway in paying off. We are self employed though and I am concerned about our bank accounts.

We have a personal account with small overdraft and a loan, plus a credit card all with Natwest - our btwo business accounts are also held with the Natwest though and our concern is that they will foreclose on these and force us into bankruptcy. We have banked with them for 20+ years and at the moment have no adverse credit as we are managing at the moment pay everything. Where do we stand with other bank accounts held at the same bank??

Posted: **Wed Apr 11, 2007 10:30 pm**

Then you will need to discuss your plans with the bank in advance of commencing insolvency proceedings, to avoid them terminating the company's facility.

Have you personally guaranteed the overdraft? If so, this will need to be included in your IVA as a contingent liability.

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

Posted: **Mon Apr 16, 2007 11:25 am**

I have checked and we are indeed personally guaranteeing the business overdraft - if we went ahead with an IVA and included our business overdraft in it it would mean that the Natwest would then have more than 25% of our debt - what are the implications of this?

Posted: **Tue Apr 17, 2007 12:02 am**

Natwest are a very commercial creditor, and so long as your proposals are realistic and properly presented, this should not be a problem. They have a minimum dividend criteria of 25p in the £.

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