Would i have to close the company bank account

[stuart 1]

Hi, I am considering an IVA, i have unsecured debts in excess of £120,000 and equity of only £50,000. I work in the finance/mortgage business and our income has dropped substantially this last 7 months so i am struggling to meet committments. My question is ' I am MD of my own Ltd Company which has been trading for 6 years. We Bank with Nat West for the Ltd company and also have personal accounts. If i do an IVA on my personal side, are Nat West able to off-set the debt i owe them on a personal loan of £24,000 from cash held in the company bank account ? Would i have to close the company bank account even though it is s separate legal entity as a Ltd Company ?

[Adam Davies]

Hi
I doubt that they could offset from the business account,however ou will need professional advise on this.
They may well close your business account if you declare insolvency
Have a chat with an IP

[MelanieGiles]

They cannot offset monies held to the account of one legal entity - ie the limited company - and use that money to pay debts owed by another legal entity - ie you.

You should have a chat with the bank to see if they will be prepared to continue the limited company's accounts in the event that you become personally insolvent.

[Soulgrowth]

What a pity to see yet another element of a 'casualty' of the 'credit crunch'. Stuart, how do you see the mortgage business moving in the future? Will your company survive do you think?

Debbie

[stuart 1]

By the way , this a fantastic site and offers hope and support to people who are very much in need!

We are a casualty of the 'credit crunch' no doubt. I have ended up letting some staff go, which was horrible. 38,000 people have lost their jobs in financial services since the end of last year. Thats a lot of hardship. Not sure we are at the end of it all yet though as lenders continue to tighten their belts. I suspect that unsecured credit will be the major casualty of the 'crunch' in the end as debt becomes more expensive.

The worst thing is that i can do very little to increase 'income' at this stage to repay my own credit, cutting expenses was a start but 'income' is key.

I suspect that there will be an influx of financial services new members on here soon . Thanks for the support.