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Starting IVA - business bank account linked to personal?

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Hi, im just applying for an IVA,


I have a personal bank account with HSBC which is about 1500 overdrawn, and a CC with about 900 on it.


I have recently started my own business and have just opened a HSBC business account. The company is a limited company with 3 owners/directors - of which i am one.


We are all down as guarantors on this new business account.


Basically I want to know if HSBC can do anything to the business account once they receive the IVA application? I dont really want to ring up HSBC and ask them...


Many thanks

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The business is a limited company therefore has it's own identity. It's bank account is not your account but the businesses account.


Your company is a private limited company with shareholders (who own the company) and directors who are "employed" by the shareholders to run the company. The shareholder(s) and director(s) may be the same people.


Tesco is a public limited company (PLC) who have shareholders (any memebr of the public) who own the company and a board of directors who "run" the company on behalf of the shareholders.


See the simlarities? The only difference is your company is private (so no one from the public can buy shares) and Tesco is public (anyone can buy shares)


If a director or shareholder of Tesco went bankrupt would the "powers that be" dip into Tescos bank account to satisfy the bankrupts debt?


No.....they wouldn't be able to touch Tesco's account because that bank account would be Tesco's account and NOTHING to do with the individual shareholder or director.

The same applies to you and your limited company. The companies money is NOT yours and your money is NOT the companies.


I hope this helps....but in short they cannot touch any money that is in your companies account even if you as an individual owe them money.

It is the same with you and your partners sepaeate accounts. If I have an account and my wife has an account with the same bank and I owe them money they cannot take it from my wife. Same rules apply here


Good luck with the business...don't spend what you haven't got!!



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Hi, thanks for the reply,


I had hoped that this would be the case, the reason I posted on this forum is that my Iva practictioner seems to think they may be able freeze the business account, though she wasnt sure and is getting a second opinion!


Much appreciated as it has put my mind at ease

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I would suggest you seek the 2nd opinion then Kitemonkey as I am no "expert" on the subject, I am merely advising as I have been advised in the past (I have a business also) .


Let me know what she says but I am sure, the way I understand things is correct. Your accountant should be a good place to get advice.


Anyone else help out here??

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Hi, I received a call from my IP who did a bit more digging - basically saying that they can't touch the business account so thats one less thing to worry about!


As you said, its the business's money, not mine


Many thanks

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Just a further thpght Kitemonkey that you may wish to clarify with your IP.


Are you a shareholder as well as a Director?


If you are - then you "own " part of that company in the same way you might own a 50% share in your house with your partner. This could be classed as an asset.


Might be worth checking out the shareholder bit just to be doubly sure


Just a thought.....

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Shares in private companies are not regarded as assets. Shares (like any other asset) are only worth what you can sell them for. Who would buy your shares?

I really do appreciate all those 'thank you' emails - I'm glad I've been able to help. Apologies if I haven't acknowledged all of them.

You can also ding my gong if you prefer. :)

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