who will give a business account please?

[jpj]

I am one year into my IVA,all is going well (and I actually have enough equity in my property to pay of the IVA if I wished). My problem is I am self employed, The business i run was with a business partner,but he has recently stepped down.The business account i currently have is with Barclays,they tell me they cant change the account to a sole trader as it will always show on their system as a partnership account. due to my IVA they wont open me another account,same with Nat West.I need no borrowing facility and the account is well in credit...who will give a business account please? Many thanks

[MelanieGiles]

I can't see a problem in you continuing with your existing account, so long as your partner is removed as being a signatory or being responsible for the account. Do you trade under a trading name?

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

[Adam Davies]

Hi
Is there an equity release clause within your IVA ?
If not then a remortgage to offer a F+F is very possible.
I,m yet to come accross a bank that will offer a business account to someone in an IVA so am interested to see how[if you go down that road]a third party can help.
regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[jpj]

Hi Andy

Yes there is an equity release clause for 85% in the forth year. looking at other posts on here I now think I know more about what it entails. It clearly wasnt made clear to me when I arranged the IVA !! (and i asked a hell of a lot of questions)[:)]
I was led to believe that a remortgage in the 4th year was to pay the remainder off early and save me doing a 5th year ! I was led to believe the maximum I had to pay back was the £42,000 value of my IVA.(plus IP costs)
Am I now right to believe that if I work hard and have another profitable 4 years,and remortgage my home I could end up paying back the whole £127,000 I owed in the first place?? so IVAs dont "write your debts off" they just freeze them to possibly come back and haunt you for 5 years??
Regards
JPJ

[keh]

Hi jpj

An iva is an agreement between you and your creditors where you pay x amount in the pound back but also if you read the contract it will also state that if your earnings increase or receive a windfall then (most) will expect at least half so in the end you could end up paying 100p/£.

It might be an option to see if you can remortgage in the third year with the intention of making an full and final offer and thus finishing your iva early

Keith

The long and winding road will straighten out eventually....keep the faith

[jpj]

Thanks Keith
As ive just entered my second year i will keep my head down for 12 months then look into it!
If I do sell my property at any point in the next couple of years do they take ALL equity I get from the sale or leave me with 15% to transfer to my new property? If they do take it all then surely Im locked into my current property for 5 years to protect my 15% equity they cant touch(which is obviously a lot on a property worth over £250K!
JPJ

[keh]

hi jpj

Not being an expert i can not answer that but sure Andy or Melanie will.

It was meant to come across as an idea not advice.



Keith

The long and winding road will straighten out eventually....keep the faith

[Adam Davies]

Hi
The 85 percent clause will allow you to keep 15 percent of the equity if you sell in the final year.If you want to sell earlier then you will hav to take advice from your IP.
You,d be amazed at the posts that we get from people that do not fully understand the equity release clause and,as I,ve said before on this forum, I,d like to see a visit to a solicitor to explain this clause and to sign to that effect a standard procedure prior to accepting an IVA .

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[MelanieGiles]

Hi again

Can you post exactly how much you owed to creditors when you entered into your IVA, the level of your monthly contributions and the level of equity you feel you have in your house right now.

With regard to the Barclays account, I would try and find someone at a higher level within the bank to plead with. As you say you have been a loyal customer of the bank for 10 years. Do you owe Barclays any money?

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

[MelanieGiles]

How can an IP say that it would not cover your business interests, when you trade in partnership? That was pretty poor advice!

You will need to continue to pay your IVA, and address the 85% LTV equity release clause at the appropriate time. If your property is jointly owned, then you will only have to find your share of the equity.

I am suprised that Barclays continued to allow you ongoing facilities and have not sought to set off monies held in deposit accounts against unsecured liabilities. I can see now why they are not prepared to continue, as it appears that they were never told about the IVA in the first place. Were there any other partnership debts excluded from your IVA?

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