Questions you have before making a decision to go Bankrupt and the Bankruptcy process

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By willow
#3894 Hi

I am a discharged bankrupt (since 08/03). My partner and I have been running a business as a sole trader business (in my partners name) for about 18 months and we have just become limited and now need to change from a sole trader to a limited company bank account.

What we thought would be an easy transition is turning into a bit of a problem in that now I am listed as a director we have been declined by one bank because of what we assume to be a bad credit history for me (my partner's is outstanding so it's most unlikely to be a problem there and the account that we have used when we operated as a sole trader has an exemplary history). Does anyone have any knowledge or experience or advice on where to go to obtain a business bank account? We only require a simply current account and no credit/overdraft facilities.

Any thoughts would be gratefully accepted!!

Willow
ByDavidc
#3895
willow wrote:Hi

I am a discharged bankrupt (since 08/03). My partner and I have been running a business as a sole trader business (in my partners name) for about 18 months and we have just become limited and now need to change from a sole trader to a limited company bank account.

What we thought would be an easy transition is turning into a bit of a problem in that now I am listed as a director we have been declined by one bank because of what we assume to be a bad credit history for me (my partner's is outstanding so it's most unlikely to be a problem there and the account that we have used when we operated as a sole trader has an exemplary history). Does anyone have any knowledge or experience or advice on where to go to obtain a business bank account? We only require a simply current account and no credit/overdraft facilities.

Any thoughts would be gratefully accepted!!

Willow

I have to be brutally honest Willow. In the 12 months I have been around on this Board and another similar this is a question and a problem that I have seen come up again and again.....Not in one case has anyone been able to find a provider willing to open a business account for them.....
David
By willow
#3896 so even though there is zero risk, even though I am discharged, even though the sole trader account has operated without a hitch and even though I am legally allowed to be a company director the banking community would effectively have me/us put out of business as its impossible to operate without a bank account. Is there a workaround? Does anyone know if these agencies that you pay to get you a bank account if you have a bank credit history have any value in this situation?

Willow
ByDavidc
#3897
willow wrote:so even though there is zero risk, even though I am discharged, even though the sole trader account has operated without a hitch and even though I am legally allowed to be a company director the banking community would effectively have me/us put out of business as its impossible to operate without a bank account. Is there a workaround? Does anyone know if these agencies that you pay to get you a bank account if you have a bank credit history have any value in this situation?

Willow
Again Willow we have seen people who have parted with money and posted here and on another site high hopes that these agencies would come up with the goods. Not in one instance have they been succesful as whatever they say or promise you have to meet the providers criteria. All these agencies do is take your details/history and try to find a provider who's criteria you meet. They offer no guarantees if you do not indeed do so.
I do not see that this will put you out of business as you have apparantly been trading without a hitch to this date. The other option of course is for you not to become a director and remain an employee untill your status improves.
David
Last edited by Davidc on Sat Feb 12, 2005 9:01 pm, edited 1 time in total.
ByVanessa
#3898 You will have been 'blacklisted' because you are a Shareholder rather than a Director as if you own more than 25% of the shares they will class it on a similar basis to a sole trader etc. Surely your partner could open the account as 'sole shareholder' and add you to the account at a later date ?

As far as I am aware they don't credit score signatories ( my accountant was one on my account in the good old days ).
By JohnDoe
#3903 The Natwest (spit) do a non-credit business account.
HTH
By willow
#3904 Thank you David and Vanessa for your replies and advice which is most appreciated.

Vanessa....are you sure about this or is this just an opinion?...its an interesting view that I hadn't considered...and I am trying to get my head around this one!

JohnDoe...thank you also...I will check that one out!!...does it have a product name that you know of?

Willow
By JohnDoe
#3905 I can't remember I'm afraid, but it is the equivilent s/p to the Step Account, which is their personal non credit scored account.

I couldn't say if it applies for discharged bankrupts, I'm just going on my personal experience of having years of CCJ's on my credit history.
All the best.
By willow
#3926 Hi people...

Good news although not entirely in agreement with previous posts I have this morning gone to both Nat West (on JohnDoe's advice) and the Co-op and both have been happy to open business current accounts for us.

I thought I would post an update in case anyone else has a similar problem in the future.

Willow
ByDavidc
#3933
willow wrote:Hi people...

Good news although not entirely in agreement with previous posts I have this morning gone to both Nat West (on JohnDoe's advice) and the Co-op and both have been happy to open business current accounts for us.

I thought I would post an update in case anyone else has a similar problem in the future.

Willow

Let us know when you have the cheque books, as I have seen this before and in the end they did not materialise.
Bear in mind that every individuals credit history is different and you may meet the criteria required by these banks whilst others did not.
In fact it was the Natwest that was the subject of the last posting on this subject....in the end despite promises it did not pan out...wait and see.
Which is in line with my previous posts.
David