Business bank account whilst going through a self managed DMP

exponential

Hi guys,

I have a question regarding opening a business bank account whilst on the road towards a self-managed DMP.

As some of you know, I am currently £50k in unsecured debt with the intention to allow my accounts to default as my income as a sole trader has significantly dropped and I just can't hold it all together anymore.

It has been suggested to me to incorporate my business in order to prevent my personal debt problems from creeping into my business.
I have a Monzo business bank account which was set up as a sole trader account but, if I decide to go Ltd, this account will have to be closed whilst the Ltd account is set up.

Can I ask anyone who knows, what are the chances of this Ltd account being refused?

I don't want to go through the whole process of incorporating my business and everything that goes along with it only to find that I am refused a Ltd version of my Monzo account!!

Although I am no longer paying my creditors, there are still no missed payments showing on my credit files. 

Should I strike while the iron is hot and apply for the Ltd account before my credit files begin to crumble away or does it not work like that?

If the application is successful, is it likely that this account can be unexpectedly closed in the future due to the impact the upcoming defaults will have on my personal credit files.

Any advice on this would be great and, if you think this is a bad idea, please do say so!!

exponential

Any help on this at all guys? 

Can my Ltd business account be unexpectedly closed once the defaults start to be added?

sourcrates

As previously informed, we don`t deal with business debts on this forum, all I can tell you is any bank account can be closed at the banks discretion and without warning, proceed on that basis and deal with matters if they arise.

exponential

Thanks @sourcrates although all my debts are personal and not business related at all.

That's why I asked the question really. Thanks for your input.